Danakali to sell 50% stake in Colluli potash project
Danakali is set to sell its half of stake in Colluli potash project in Eritrea to Chinese company Sichuan Road and Bridge Group.
The 50% stake sale deal will be finalized between March and May2023. The Australia’s firm been in partnership with Eritrean National Mining Corporation (ENAMCO) over the mine project. 90% of the $121 million cash that Danakali has been left with will be distributed back to shareholders. The remaining cash, about $12 million will be used to identify new projects and potential new alternative growth opportunities.
Colluli potash project
The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. It has been ranked as world’s most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. It boasts JORC compliant reserve at 1.1 billion tonnes.
Colluli potash project also projects commercialization of kieserite and mag chloride. Other fertilizer products at the site include; gypsum, rock salt and muriate of potash (MOP). It also has access to solar, wind and geothermal energy systems – the East African rift.
