Africa Finance Corporation

ASX/LSE-listed Danakali has announced that a report prepared initiated and funded by the United Nations Development Programme on the potential contributions of the Colluli Potash Project to Eritrea’s Sustainable Development Goals has been released.

The report was prepared during 2018 by senior economists on behalf of the UNDP.

It assesses a wide range of econometric data and includes findings from engagements with Eritrean government officials, relevant public institutions and other Colluli stakeholders.

The report concludes that Colluli has the potential to significantly boost the Eritrean economy and meaningfully advance the Sustainable Development Agenda of Eritrea, in particular on 13 specific Sustainable Development Goals criteria.

The Executive Chairman of Danakali, Seamus Cornelius, says:

“The report reinforces the uniqueness of Colluli. We appreciate the magnitude of the opportunity and the responsibility that comes with developing an asset of this significance with the potential to improve the lives of millions. We are grateful for the effort and energy that
went into the report.

“Colluli is much more than a great mining asset. Not only does it have outstanding grade, size, location and simplicity; Colluli’s products will also help farmers and support food security in Eritrea, across Africa and beyond.

“The report effectively highlights the alignment between Danakali and, our partners, ENAMCO in ensuring the Project is successfully executed. We look forward to working with ENAMCO to ensure Colluli reaches its full potential for the benefit of all stakeholders.”

Cristian Parra, joint author of the report with Dr. P. Anand, comments:

“Colluli can be an important source of direct impacts in Eritrea. Because of these impacts and Danakali’s and CMSC’s corporate policies the project has the potential to generate significant positive effects on the Sustainable Development Agenda of Eritrea, in particular on 13 specific Sustainable Development Goals.

“The final effects on Sustainable Development Goals will be highly connected to fiscal impacts and effects that will be generated by Colluli’s final products.

“From a global perspective the Project is a very interesting case and can be considered a significant step ahead in terms of the relationship between the resource industry and the development agenda of the host country, and
how to understand mining contributions beyond the traditional direct economic effects.”