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Colluli gets Ministerial backing

22nd July 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The Eritrean Ministry of Energy and Mines (MoEM) has accepted the Notice of Commencement of Mine development for the Colluli potash project.

ASX- and LSE-listed Danakali on Wednesday noted that the MoEM has also shown support for the financing of the Colluli project by granting the company a 36-month period to start commercial production from the submission of the notice, placing production start at December 2022, consenting to the security to be granted in support of the financing, and consenting to the account structure for the project financing.

The acceptance of the notice is one of the conditions precedent to the financing of the Colluli project, and is a positive step towards achieving financial close of the project facilities, CEO Niels Wage said.

“This year, the project team has made significant progress through management of DRA during Phase 1 and 2 of the engineering, procurement, construction management works and most recently by commencing the necessary test works, enabling us to maintain forward momentum of the project development,” Wage said.

Danakali has previously obtained all licences and permits within the Colluli mining licence, and along with the acceptance of the notice, the MoEM has also granted all required permits, licences and authoritisations for infrastructure construction and development outside of the mining licence area.

Edited by Creamer Media Reporter

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