Jun 24 th 2014
South Boulder Mines CEO sets the record straight on Eritrea potash
South Boulder Mines' (ASX:STB) chief executive officer Paul Donaldson has
spoken with Proactive Investors to set the record straight on a number or
misconceptions contained in a recent media report.
South Boulder is a 50% shareholder of the Colluli Mining Share Company
(CMSC), a joint venture between South Boulder Mines Ltd and the Eritrean
National Mining Company (ENAMCO). South Boulder is currently working on the
Feasibility Study to support the
development of the project.
PROACTIVE INVESTORS:
Paul, can you please outline the South Boulder joint venture relationship
to the Eritrean government?
PAUL DONALDSON:
South Boulder Mines and the Eritrean National Mining Company (ENAMCO) are
equal shareholders of the Colluli Mining Share Company (CMSC) which will
develop the Colluli Potash project. The joint venture company (CMSC) will
seek to borrow 70% of the capital required for the first phase of the
development. South Boulder will contribute the remaining amount and will be
preferentially
paid back 50% of the contribution from project cashflows after third party
debt payments.
Following first production, CMSC will seek to borrow funding or develop the
project from cashflows.
PROACTIVE INVESTORS:
How supportive have ENAMCO been in progressing studies on the project?
PAUL DONALDSON:
The Colluli Mining Share Company is now holding regular board meetings and
focussing on the development of the project.
ENAMCO have been very supportive in progressing the project and have
recently allocated a coastal area in close proximity to the resource for
the future development of shiploading facilities.
PROACTIVE INVESTORS:
How does the Colluli project differentiate itself from peers?
PAUL DONALDSON:
Colluli is the shallowest known potash deposit globally. This provides a
significant advantage in the area of capital intensity. The resource is
large, and in close proximity to both the coast and existing in country
import/export facilities. The scale of the resource, and the lower capital
intensity make it ideal to develop in a modular fashion to mitigate safety,
resource and capital risks very few potash deposits have this advantage.
The three potassium bearing salts in the resource can be combined to
produce potassium sulphate which is the focus of the current work. If
successful, this will make Colluli one of the most significant sources of
potassium sulphate globally. Proactive Investors Australia is the market
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Received on Tue Jun 24 2014 - 18:53:05 EDT