3rd Mar 2020 18:57
(Alliance News) - Potash explorer Danakali Ltd said on Tuesday it has completed Phase 1 of the engineering, procurement and construction management of the Colluli sulphate of potash project in Eritrea.
The project is 100% owned by the Colluli Mining Share Co, a equally-owned joint venture between Danakali and the Eritrean National Mining Corp.
The company said it has commenced Phase 2 of the project and will now focus on securing key mining services agreements and developing an execution strategy. It said that it has commenced geotechnical work and added that water desalination plant design work and key mining services contracts are now underway.
Danakali said that the completion of the first phase of the project brings it closer to construction phases 3 to 6.
Production is expected to begin in 2022.
"It has been a busy start to the year with a number of work streams being progressed. We have now commenced Phase 2 of the Project development allowing us to further de-risk the development by greater definition of cost, schedule and design," said Project Director Tony Harrington.
The stock closed 3.4% lower at 28.50 pence each on Tuesday in London.
By Ife Taiwo; [email protected]
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