After a good FEED, Danakali in financing mode

THE drawn-out development of Danakali’s 50%-owned Colluli potash project in Eritrea is said to have moved an important step closer with completion of a front-end engineering design (FEED) study “seen as a critical milestone for offtake and debt processes”.

After a good FEED, Danakali in financing mode After a good FEED, Danakali in financing mode After a good FEED, Danakali in financing mode After a good FEED, Danakali in financing mode After a good FEED, Danakali in financing mode

The project needs about US$300 million to get up and running, with average annual undiscounted free cash flows put at $88 million.

The FEED study, which reaffirmed “the outstanding project economics”, is said to involve a high level of accuracy, and be “the final study stage before project execution”.

A definitive feasibility study at Colluli was completed at the end of 2015, with a couple of appointments at Danakali late last year highlighting the current focus of the company.

The December-appointed CEO Danny Goeman replaced chemical engineer Paul Donaldson, with Goeman having “over 20 years of marketing and sales experience including industry analysis, price negotiation, market segmentation an...