HomeEast AfricaDanakali commences with EPC contract bidding process for Colluli project

Danakali commences with EPC contract bidding process for Colluli project

Danakali reports that the shortlisted parties are internationally renowned engineering firms with a vast array of experience in Africa, Eritrea and potash.

The shortlisting follows an invitation for expressions of interest for the EPC contract which drew strong interest.

The firms will visit the Colluli project in early October.

In addition to visiting the future mine site, the firms will also hold discussions with in-country service providers, and conduct an examination of the logistics route between the Port of Massawa and the project, and the planned sea water pipeline corridor from Anfile Bay to the future Colluli mine site.

“We are happy to have successfully reached the significant and exciting milestone of initiating the formal bidding process with highly reputable and experienced groups for the EPC contract for the project, says Danakali MD Paul Donaldson, adding that Danakali looks forward to hosting the shortlisted parties at the site visit.

Colluli, which is located within the Danakil Depression region of Eritrea, is one of the most advanced and attractive greenfield sulphate of potash projects globally.

It has an estimated mineral resource of 1.29 Bt grading at 11% potassium oxide (K2O) for 260 Mt of contained sulphate of potash, an exceptionally long expected mine life, unrivalled product diversification potential and significant upside.

Danakali is currently awaiting mining license approvals from the government of Eritrea.

Funding discussions are also underway and the company has signed memorandums of understanding for 800 000 tpa of sulphate of potash.

Chantelle Kotze
Chantelle Kotze is a Johannesburg-based media professional. She is a contributor at Mining Review Africa (Clarion Events - Africa) and has created content for the media brand over the past 6 years.