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(Alliance News) Danakali Makes Progress At Eritrea Potash Project And With CEO Search

Posted by: Semere Asmelash

Date: Tuesday, 30 October 2018

Alliance News

Danakali Makes Progress At Eritrea Potash Project And With CEO Search

Tue, 30th Oct 2018 13:11 By Paul McGowan

Danakali Ltd signs offtake agreements for Colluli sulphate of potash

LONDON (Alliance News) - Danakali Ltd said Tuesday it has established a shortlist for its vacant chief executive officer position as the potash miner agreed and finalised a social & environmental management plan for its Colluli potash project in Eritrea, east Africa.

Danakali said its Colluli project is "execution ready" and it plans to finalise a contract with its preferred mining contractor in the fourth quarter, ending December.

In the third quarter, ended September, Danakali confirmed an engineering, procurement and construction management services contract with DRA Mining Pty Ltd.

The company also visited EuroChem Trading GmbH's Belgian nitrogen potassium fertiliser production facility in the period to "continue development of the offtake partnership".

EuroChem agreed a binding take-or-pay offtake agreement with Danakla for up to 100% of module 1 sulphate of potash, with a minimum of 87%.

Danakali said there has been "significant" further positive developments in the Eritrean-Ethiopian relations since the miner's last update in July.

Ethiopian Prime Minister Abiy Ahmed and Eritrean President Isaias Afwerki agreed to open embassies in their respective capitals. In September the two leaders signed a joint declaration of peace and friendship and the border between was opened for the first time since 1998.

Danakali's potash project is a 50-50 joint venture with the Eritrean National Mining Corp.

At the end of September Danakali had consolidated cash on hand of AUD11.8 million, about GBP6.6 million.

Shares in Danakali were untraded Tuesday but last closed at 42.0 pence each.

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Danakali's new CEO leads development of unique Colluli Potash Project in Eritrea