Potash

The company has reported sales of US$1.57 billion for 1Q20, a 3% increase y/y.

Hot mining recirculates heated saturated brine from the crystallisation pond into the caverns, and preferentially extracts the dissolved potash in the cavern which returns to the crystallisation pond, while leaving the salt in place underground.

The contract agreed is worth US$220/t.

In 2Q20 and 3Q20 the company has said it is aiming to finalise binding offtake agreements programme focussing on the Asian (ex China), European and North American markets.

Danakali has provided a quarterly update on the activities and financial position of the company and its Colluli potash project in Eritrea, East Africa.

The company has announced results from recent drilling at the Dougou extension (DX) potash solution mining project in the Republic of Congo.

Under the MOU Highfield would provide Maxisalt up to a total of 500 000 tpy of salt comprising 400 000 t of vacuum salt, a higher value product, and 100 000 t of de-icing salt.

1Q20 EBITDA excluding special items was US$504 million, up from US$464 million a year earlier.

As part of its US$50 million strategic equity investment in Danakali and overall funding package for development and construction of the Colluli sulfate of potash project in Eritrea, AFC was granted the right to nominate up to two directors to Danakali’s Board.

Shafting is being carried out mechanically using shaft boring roadheader machines manufactured in Germany.

The technology was piloted at the Berezniki-4 plant in Russia's Perm region, and the system is now being introduced across all of the company’s plants.

The direct capital cost estimate of mine access components has been estimated at approximately US$34.1 million including a 21.7% contingency.

Ignacio Salazar will join the Highfield Resources Group as CEO with effect from 20 July 2020.

The company has reduced its capital guidance by 43% in response to the Covid-19 pandemic.

The funds will enable the company to continue to deliver the Lake Way sulfate of potash project to schedule.