20th Dec 2019 16:06
(Alliance News) - Danakali Ltd said Friday that Colluli Mining Share Co has issued a notice to DRA Global to proceed with the provision of engineering, procurement and construction services for the Colluli sulphate of potash project.
The project is located in the Danakil Depression in Eritrea and is wholly owned by Colluli Mining Share Co, a 50-50 joint venture between Danakali and Eritrean National Mining Corp.
DRA is an Africa-focused project management and engineering group.
In addition, Colluli Mining has resolved to start the first two phases of EPCM activities on the project.
Phases one and two includes DRA reviewing Colluli's front end engineering design, and updating it through re-estimating its capital and definition of schedule, conducting optimisation reviews, and starting geotechnical test work.
On Thursday, Danakali said Colluli Mining had confirmed Earth Moving Worldwide as its preferred contract for the Colluli project mining services scope.
The mining services scope covers the pre-production period and the first five years of production, which includes the provision, operation and maintenance of excavation, haulage and dewatering equipment.
The mining services contract is expected to be executed in early 2020, with production at Colluli set to commence in 2022.
"I am very pleased we will be formalising our partnership with DRA after over a year of quality and positive interactions with their team. With the majority of project funding committed the CMSC owner's team is ready and eager to collaborate with DRA and commence work immediately. This is the moment our personnel and other stakeholders in Eritrea have been waiting for," said Project Director Tony Harrington.
Shares in Danakali - which is headquartered in Perth, Australia - were down 7.7% at 30.00 pence on Friday in London.
By Dayo Laniyan; [email protected]
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