Danakali has been awarded crucial mining licences for the Colluli potash project in Eritrea, adding to the signing of the mining agreement with the country’s government.
According to Danakali, the mining agreement provides exclusive access over the 1.3 billion tonne potassium resource and associated minerals.
The Perth-headquartered company has been awarded seven mining licences, which span more than 60 square kilometres of the 100-square-kilometre agreement area, representing more than 60 years of the 200-year mine life determined in the definitive feasibility study (DFS).
Danakali managing director Paul Donaldson said this was another significant milestone for the company.
“There is a clear and compelling investment case that supports the Colluli development and we have consistently stated that our joint venture partnership is a project enabler,” he said.
“The fact that Colluli is the most advanced sulphate of potash (SOP) project in the world is a testament to that. The award of the agreement and mining licences are also clear demonstration that business can be done in Eritrea.”
Danakali owns a 50 per cent share in the Colluli project, which is a joint venture with the Eritrean National Mining Company.