Danakali
The diverse range of potassium bearing salts found at Colluli, namely kainite, sylvite and carnallite ores, have the unique capability of producing a diverse range of potash types
Potash developer Danakali has initiated the bidding process for power generation for its Colluli potash project in Eritrea.

Further to this it has also completed the initial expressions of interest phase.

Evaluation of the bids from the shortlisted parties is expected to be completed by April, after which the preferred service provider will be selected and commercial terms will be finalised.

Danakali has a completed a definitive feasibility study, announced 30 November 2015, which demonstrates a world-class project with a massive 1.1 Bt ore reserve, industry leading capital intensity, bottom quartile operating costs and unrivalled product diversification potential.

Danakali continues to advance its mining agreement and mining license, and is positive that it can conclude this step of the process shortly.

The company also said in September last year that it has shortlisted three firms that will progress to a competitive bidding process for the EPC contract for the Colluli potash project.

Danakali reported 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 would visit the Colluli project in early October.

In addition to visiting the future mine site, the firms would 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.

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.