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EPCM phase 1 of Colluli project completed

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World Fertilizer,

Danakali Ltd. has announced that the Colluli Mining Share Company (CMSC) has successfully executed EPCM Phase 1 of Project development at the Colluli sulfate of potash project in Eritrea and has now moved to Phase 2.

EPCM progress

The owner’s project team based in Johannesburg and led by Project Director Tony Harrington, has made significant progress with the delivery of Phase 1, on schedule, on budget and in line with the FEED. This takes Colluli closer to the construction phase and then into production in 2022.

As part of the management support by DRA Global (DRA), all Project Systems, Project Controls and Progress measurement systems are in place, and the team is now focused on securing key Mining Services agreements and developing execution strategy.

Water desalination plant

Site based reverse osmoses (RO) plant will be constructed by a South African manufacturer with expected delivery in 3Q20. The facility is one of the key components to de-risk the development schedule and will be used to provide potable and construction water prior to the commissioning of the main Anfile Bay Water Intake Area (WITA). WITA design is currently under development by DRA in Cape Town.

Geotechnical investigation

The geotechnical investigation contract, final terms and conditions being agreed with a selected major multinational consultancy firm. The design outcomes will outline further structural mapping and 3D modelling, that shall ensure accuracy and assist with the construction planning.

Industry engagement

Significant progress has been made on securing key contractors for onsite works, with Earth Moving Worldwide to provide mining services, Turner and Townsend to support the Owner’s Team and DRA engaged for the provision of EPCM services. Development of the Early Works packages have commenced with remaining tender procedures to be finalised in early 2Q20.

Earlier in February, the Danakali Executive team participated at Investing in African Indaba conference, the world's largest mining investment event, where it has met with industry partners and co-hosted Africa Finance Corporation’s (AFC) annual conference, following the confirmation of AFC’s US$50 million strategic equity investment. Colluli is now fully on track with mobilisation (phases 1 & 2) and commencement of construction in 3Q20. Upon finalisation of remaining activities within Phase 2, Danakali will be hosting a site visit to Colluli for analysts and investors in 2Q20.

Project Director, Tony Harrington, said: "It has been a busy start to the year with a number of work streams being progressed. It is encouraging to see a collaborative team providing a strong professional approach, that is experienced and understands the importance of delivering a fit for purpose process plant with a shared objective to achieve the shortest path to revenue. The FEED pricing reconfirmation is underway, and we are pleased to have identified several optimisation and cost saving opportunities which we are incorporating in further planning. We have now commenced Phase 2 of the Project development allowing us to further de-risk the development by greater definition of cost, schedule and design.

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