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
Danakali has appointed multi-national engineering and construction firm, Fluor, to lead the front end engineering design (FEED) and optimisation process for Colluli.

The appointment of Fluor follows a competitive tendering process initiated in 2016.

Fluor was one of three shortlisted engineering firms that visited Eritrea and the Colluli site for several days in October 2016. The visit included an overview of the country capital, Asmara, an inspection of the Port of Massawa, and a visit to the future Colluli mine site.

Fluor will provide a highly qualified team, including project engineers skilled in EPC packaging, and a design team with world-class process plant and infrastructure experience to the Colluli FEED and optimisation project. The company also has extensive experience in the study, optimisation and execution phases of potash projects.

In addition, Fluor has extensive capability and experience in assisting clients to arrange financing for their projects and it maintains a specialised group of project finance professionals located in various locations throughout the world. The company is expert in working with export credit agencies to arrange export credit loans and loan guarantees for major international projects.

Danakali MD Paul Donaldson said: “We are delighted to be working with Fluor as we develop the Colluli project. The combination of their values, people, reputation, optimisation approach, mining and metals experience, African experience and potash specific experience, will benefit the project significantly as it advances towards construction.”

Colluli is one of the most advanced Greenfield sulphate of potash (SOP) developments in the world, and demonstrates outstanding economics, including industry leading capital intensity, bottom quartile operating costs, close proximity to coast and key markets and unrivalled product diversification potential.

Approval of the social and environmental impact assessment for the project was given by the Ministry of Land, Water and Environment in December 2016. The award of the Mining Agreement and Mining License for the project is well underway.