Danakali Limited - Eritrean Mining Minister Leads Colluli Site Visit

Danakali Limited - Eritrean Mining Minister Leads Colluli Site Visit

The Eritrean Minister of Energy and Mines Mr. Sibhat Efrem visited the Colluli mine site earlier this week as part of a delegation hosted by Danakali subsidiary the Colluli Mining Share Co. The Minister was accompanied by senior officials of the ministry including Alem Kibreab, Director General of Mines Department, Tesfay Zekarias, Director General of Energy Department and Kiflome Debesay, Head of Finance and Administration, who were shown the existing camp, and proposed plant and mine site.


Mining Minister leads Colluli site visit as positive focus on mining license approvals continues

Highlights

  • Eritrean Minister of Energy and Mines and key delegates have completed a visit to the Colluli mine site
  • CMSC continues its high level of engagement with the Ministry of Energy and Mines and the Ministry of Environment
  • Mining license approval process continues with positive progress
  • Delegates representing the social and environmental impact assessment approvals team attended site on the 27th June

Danakali Limited (ASX:DNK) (“Danakali” or the “Company”) is pleased to announce that, the Eritrean Minister of Energy and Mines, Mr. Sibhat Efrem led a delegation to the Colluli Mine site earlier this week. The visit was hosted by the Colluli Mining Share Company (CMSC).

The Minister was accompanied by senior officials of the ministry including Mr. Alem Kibreab, Director General of Mines Department, Mr. Tesfay Zekarias, Director General of Energy Department, and Mr. Kiflome Debesay, Head of Finance and Administration.

The visit commenced at the existing exploration camp, from which the team travelled to the planned processing plant construction site where a detailed overview of the massive resource, site layout, processing plant, mining and logistics was given. Project upside potential from the monetisation of rock salt and gypsum was also outlined to the delegation.

Detailed discussion on the social and environmental impact assessments and management plans were held.

The team then continued to the location identified for initial open cut pit shell, where a detailed discussion was held with regard to the open cut mining method, mining fleet configuration and the advantages of the mine method for the location and the resource.

The CMSC team completed the visit by stopping by the nearby village of Adayto. The members of the village have been involved in the stakeholder engagements completed throughout the project study phases and have demonstrated strong support for the project development. The social and environmental impact assessment (SEIA) and associated management plans (SEMP) have been completed to the equator principles. The SEIA and SEMP were made publically available for a two-month period which concluded earlier this week. Positive feedback on the completed documents was received.

Managing Director, Paul Donaldson said “We are delighted to have hosted the site visit for the Minister and his delegation. We have a strong and effective relationship with the Ministry of Energy and Mines and have a continuing dialogue with all relevant ministries involved in the mining license approvals process. Danakali and the Colluli Mining Share Company have enjoyed strong engagement with all relevant Eritrean ministries throughout the pre-feasibility and definitive feasibility study phases. We look forward to our ongoing relationship with all key stakeholders as we take the development into construction and subsequent production.”

The Colluli project’s definitive feasibility study (DFS) was completed in November 2015, and is currently awaiting mining license approvals. Representatives from relevant government ministries assigned to the approvals process visited site in June to assist with evaluation of the social, environmental impact assessments and associated management plans. Funding discussions are underway and the company has signed memorandums of understanding for 800,000 tonnes of sulphate of potash per annum. The DFS indicates industry leading capital intensity, bottom quartile operating costs and an ore reserve of 1.1 billion tonnes.

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