logo-loader
viewDanakali Ltd

Danakali Ltd's Paul Donaldson talks Sulphate of Potash supply squeeze

Paul Donaldson, managing director for Danakali, spoke exclusively to Proactive Investors Australia about the impact from the temporary suspension of K+S’s Hattorf and Unterbreizbach mines on SOP supply to Europe.

au_danakali_pdonaldson_headshot_358.jpg

Danakali Ltd (ASX:DNK) is focussed on the world class Colluli Potash Project in Eritrea, where a DFS has demonstrated the lowest capital intensity of all advanced SOP projects.

SOP, otherwise known as Sulphate of Potash, is a high quality, chloride free potash type with limited economically exploitable primary resources.

The project is located at the epicentre of booming population growth in Africa and Asia, while lying close to traditional Middle Eastern and European markets.

The opportunity comes from the predicted bottom quartile cost curve position means Colluli will generate sustainable industry-leading returns throughout the commodity cycle.

Paul Donaldson, managing director for Danakali, spoke exclusively to Proactive Investors Australia about the impact from the temporary suspension of K+S’s Hattorf and Unterbreizbach mines on SOP supply to Europe.

"The suspension is the result of saline water discharge management issues and will take effect from the 1st of April. 

"K+S is Europe’s largest SOP producer, and the Hattorf, Wintershall, Unterbreizbach and Merkers mines combined represent the key production centre for speciality fertilisers including SOP.

"In a market that comprises over 50% high cost secondary production, due to the lack of high quality primary production projects, further reducing supply will continue to support the sustained price premium that SOP has demonstrated over the more common potash type, potassium chloride (MOP).”


Donaldson talks Colluli SOP


Danakali completed a definitive feasibility study for the production of SOP from Colluli in December 2015.

Colluli is 100% owned by the Colluli Mining Share Company, which is a 50:50 joint venture between Danakali and the Eritrean National Mining Company.

Donaldson added: “The completed DFS demonstrates the Colluli is the premier premium potash and multi agri-commodity opportunity.

"It demonstrates industry leading capital intensity, bottom quartile operating costs, is highly fundable, has significant diversification potential, is in close proximity to coast and established import/export infrastructure, and has a mine life in excess of 200 years. It truly is world class.”

Danakali has recently completed a $5.5 million raise and is well funded to advance funding, offtake and construction discussions.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

Quick facts: Danakali Ltd

Price: 0.6 AUD

ASX:DNK
Market: ASX
Market Cap: $159.35 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Danakali Ltd named herein, including the promotion by the Company of Danakali Ltd in any Content on the Site, the Company receives from said...

FOR OUR FULL DISCLAIMER CLICK HERE

2 min read