Proactive Investors - Run By Investors For Investors

Danakali welcomes lifting of UN sanctions and arms embargo on Eritrea

Danakali is focused on the development of the world-class Colluli Sulphate of Potash (SOP) Project in Eritrea.
project area
The deposit comprises a massive ore reserve estimate of 1.1 billion tonnes

Danakali Ltd (ASX:DNK ) (LON:DNK) has welcomed the United Nations’ (UN) decision to lift the arms embargo and targeted sanctions imposed on the East African country of Eritrea since December 23, 2009.

Danakali is focused on the development of the world-class Colluli Sulphate of Potash (SOP) Project in Eritrea.

Colluli is 100% owned by the Colluli Mining Share Company (CMSC), a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation.

READ: Danakali's Colluli asset is recognised as the world’s superlative potash deposit, Daniel Stewart says

Colluli is fully permitted following the signing of the Mining Agreement in February 2017; and the subsequent awarding of the requisite Mining Licenses.

The deposit comprises a massive ore reserve estimate of 1.1 billion tonnes grading 10.5% potassium oxide for 203 million tonnes of contained SOP equivalent.

Front end engineering design (FEED) has confirmed a post-tax net present value of US$902 million and post-tax internal rate of return (IRR) of 29.9% for the Colluli project.

READ: Danakali’s advanced Colluli Potash Project in Eritrea is a cut above the rest

Danakali executive chairman and CMSC director Seamus Cornelius said: “Danakali is delighted with the UN’s decision to lift the arms embargo and associated sanctions on Eritrea.

“This significant step should have a positive impact on foreign investment and enhance international trade opportunities, leading to improved economic outcomes for the people of Eritrea.

“I offer my congratulations to the Eritrean people on this achievement and for their exceptional resilience and determination over many years."

View full DNK profile View Profile

Danakali Ltd Timeline

Related Articles

Lithium on table of elements
April 04 2019
The McDermitt Lithium Project features a high-grade ETR of 20-80 million tonnes at 2100-2600 ppm.
Vast Resources
January 04 2019
Chief executive Andrew Prelea said Vast Resources is focused on improving results in its core operations in Romania and Zimbabwe.
Hayes Creek and Burnside projects in the NT
February 06 2019
The Northern Territory is PNX’s focus as exploration efforts move indoors during the wet season.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use