FREE DAILY STOCK MARKET NEWS

FREE DAILY STOCK MARKET NEWS

Danakali eye extra value to potash project

17 November 2021
ASX: DNK
Jack Baker

Danakali will benefit from surging global demand for fertiliser producing large scale tonnage of high-quality magnesium chloride as a by-product from its Colluli Potash project in Eritrea.  

The project was already the world’s largest JORC compliant solid salt, sulphate of potash reserve at 1.1 billion tonnes. With process design complete and the mass balance finished, Danakali can look specifically at the by-product’s value.  

Aiming to be the world’s first zero-carbon sulphate of potash producer, it will begin production from the mammoth project soon amid surging prices for the fertiliser.  

While it remains focused on potash production, the company said other products also present significant upside. 

“Colluli is a tremendously large, rich and versatile ore body,” chairman Seamus Cornelius said.  

“We know Colluli has potential to produce many other valuable products.”  

“Our current mass balance equations suggest we could potentially produce 115 kilo-tonnes of magnesium per annum.”  

Magnesium chloride is primarily used in the production of magnesium oxide and as a magnesium feedstock in addition to primary applications in the agriculture, chemical, steel, automotive and construction industries.  

The project site also has significant geothermal potential to provide the energy input for beneficiation to magnesium. 

DNK’s Australian Stock Exchange-listed price is trading at 51c (8:47 am UTC+8) 

COMPANY OVERVIEW

Danakali is a resource company focused on Colluli SOP Project in Eritrea, East Africa. Their strategy targets development of a world class potash project that will become pivotal for Global and African agriculture. Colluli is expected to provide an outstanding economic, social and community dividend through positive impact on infrastructure, job creation and sustainability in Eritrea.

COMPANY INFORMATION

ASX: DNK

Website

https://danakali.com.au/
https://www2.asx.com.au/markets/company/dnk

FREE DAILY STOCK MARKET NEWS

Join our mailing list to receive the latest stock market news.

You have Successfully Subscribed!