Danakali about to secure financing for potash project in Eritrea
Australia’s Danakali’s is about to close debt financing agreements worth $200 million with two African financial institutions, which will allow it fund construction and growth of its flagship Colluli potash project in Eritrea.
The deals with African Export-Import Bank and Africa Finance Corporation could be finalized “any day” and are expected to accelerate equity financing, executive chairman Seamus Cornelius said.
Development of the 1.1 billion-tonnes potash project, a joint venture between the Australian miner and Eritrea's state mining company, is expected to take 2.5 years.
In the initial phase of operation, Colluli would produce more than 472,000 tonnes a year of sulphate of potash, a premium grade of fertilizer.
Annual output could rise to almost 944,000 tonnes if Danakali decides to go ahead with a second phase of development, as the project has a possible 200-year plus mine-life.
