Danakil potash project, Ethiopia
Name and Location
Danakil potash project , Ethiopia.
Client
Circum Minerals.
Project Description
An optimised definitive feasibility study (DFS) has improved several of the project’s parameters from the 2015 DFS and has confirmed the project as a world-class project in terms of size; potentially becoming the world’s lowest-cost potash producer, as well as a major supplier to the Asia Pacific markets.
The project has total resources of 4.9-billion tonnes grading at 18.1% potas-sium chloride (KCI) and total reserves of 107.8-million tonnes of KCI equivalent. Reserves support a 26-year mine life for Phase I, including a three-year ramp-up period. Expected production is estimated at two-million tonnes a year of muriate of potash and 750 000 t of sulphate of potash for Phase I.
Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 10% discount rate, of $2.8-billion, compared with $2.5-billion in the DFS; and an internal rate of return of 29%, compared with 26% in the DFS.
Value
Development funding for Phase 1 is estimated at $2.3-billion, including contingency, down from $2.6-billion in the DFS.
Duration
Not stated.
Latest Developments
Morgan Stanley & Co International has been appointed as the financial adviser to conduct a strategic review of the Danakil project. The strategic review will focus on the potential introduction of third-party strategic investors and joint venture parties at a corporate or project level, as well as corporate or project-level debt and/or equity investments.
Key Contracts and Suppliers
Morgan Stanley & Co International (financial adviser).
On Budget and on Time?
Too early to state.
Contact Details for Project Information
Circum Minerals, tel +1 441 295 1820, fax +1 441 295 5491 or email info@circumminerals.com.
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