Dehai News

Advancement of Colluli SOP Project

EPCM Phase 2 deliverables received, test work commenced and further opportunities pursued

-  Draft EPCM Phase 2 deliverables including Capital Estimate and Project Schedule have been received from DRA

-  Test work necessary to advance the project has commenced

-  Potential optimisation opportunities have been identified, rationalised by CMSC and investigations commenced to improve outcomes

Danakali Limited (ASX: DNK, LSE: DNK, Danakali, or the Company) is pleased to provide this project update of the Colluli Potash Project (Colluli or the Project), located in Eritrea, East Africa. The Project is 100% owned by the Colluli Mining Share Company (CMSC), a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO).

EPCM Phase 2

Preliminary materials have been delivered by DRA Global (DRA), which provide contemporary information allowing advancement to the next phase of Project Development and identifies focus areas to manage the design and process risks during the Detailed Design phase. The CMSC Project Team are now in the process of reviewing the deliverables.

Additional test work and potential opportunities

EPCM Phase 2 identified and commenced additional test work that was planned to be undertaken as part of the Phase 3 detailed engineering. CMSC took the opportunity with the COVID 19 travel restrictions to advance these test work items immediately. The output of this test work supports Environmental and Capital optimisation opportunities. Contracts have been awarded in support of this test work. These proactive steps by CMSC maintain forward momentum of the Project Development within this current period.

WITA opportunity

Within the Water Intake Treatment Area (WITA) a number of potential opportunities have been identified to improve Environmental outcomes. The key opportunities are identified as the use of filtered sea water in the processing plant and using beach wells as the water intake alternative.  A desktop study is underway to evaluate the beach well intake option. The use of filtered sea water in the process plant is being assessed as part of the additional test work that has commenced. 

Announcement authorised for release by the Chief Executive Officer of Danakali.

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