Global construction and project management consultant Turner & Townsend has been appointed to manage the post FEED EPC bid scope for the Colluli sulphate of potash (SOP) project for Danakali Ltd and its joint venture partner – the Eritrean National Mining Corp (ENAMCO):
• EPC bidding document preparation underway
• Front end engineering (FEED) design well advanced
• Defining the full scope of the EPC bidding requirements as the FEED design process progresses.
Managing Director, Paul Donaldson commented “We have engaged Turner & Townsend to provide support and advice that will: optimise project set up at the execution stage; facilitate the development of the procurement, construction, commissioning and contracting strategies; and review risk and mitigations through execution of stakeholder engagements”.
Colluli is the shallowest known evaporite deposit in the world with a solid form ore reserve estimate of over 1,100 Mt. Permitting for the project was completed in February 2017, providing the Colluli Mining Share Co (CMSC) exclusive rights to apply for mining licenses within the Colluli tenements. Seven mining licenses have also been granted.
Danakali is an ASX listed company and 50% owner of the Colluli potash project in Eritrea.
The project is located in the Danakil Depression region of Eritrea, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. Mineralisation within the Colluli resource commences at just 16 m, making it the world’s shallowest potash deposit. The resource is amenable to open pit mining, which allows higher overall resource recovery to be achieved, is generally safer than underground mining and is highly advantageous for modular growth.
The company has completed a definitive feasibility study for the production of SOP. SOP is a chloride free, specialty fertiliser which carries a substantial price premium relative to the more common potash type; potassium chloride. Economic resources for production of SOP are geologically scarce. The unique composition of the Colluli resource favours low energy input, high potassium yield conversion to SOP using commercially proven technology. One of the key advantages of the resource is that the salts are present in solid form (in contrast with production of SOP from brines) with which reduces infrastructure costs and substantially reduces the time required to achieve full production capacity.
The resource is favourably positioned to supply the world’s fastest growing markets.