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Danakali has Social & Environmental Management Plans for potash project agreed and finalised

The Eritrean Ministry of Land, Water & Environment’s Department of Environment has confirmed acceptance of the finalised plans.

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SEMPs are a cornerstone of the environmental, social and safety management system

Danakali Ltd (ASX:DNK) (LSE:DNK) has had its Social & Environmental Management Plans (SEMPs) for the Colluli Potash Project in Eritrea agreed and finalised after an extensive review process.

Eritrea’s Ministry of Land, Water & Environment’s Department of Environment (DOE) has confirmed acceptance of the finalised Colluli SEMPs.

READ: Danakali continues to progress Eritrean sulphate of potash project towards development

Finalisation and acceptance of the SEMPs represent another strong milestone for Colluli Mining Share Company (CMSC) as it prepares for project execution.

Danakali executive chairman Seamus Cornelius said: “We are committed to having a significantly positive impact in Eritrea.

“Colluli stands to provide significant social and economic benefits, creating hundreds of permanent jobs for Eritrean nationals and catering for community interests.

“Considerable community support”

“Danakali has experienced significant community support and is focused on sustainable development for the benefit of all stakeholders.

“We look forward to continuing our relationship with the government and local communities of Eritrea and achieving long-term economic, social and community benefits for the country and its people.”

READ: Danakali lists on the London Stock Exchange

The SEMPs are a cornerstone of the environmental, social and safety management system being developed by CMSC and provide the foundation for compliance.

Acceptance follows extensive DOE Impact Review Committee review of the SEMPs in the context of the previously approved Social & Environmental Impact Assessment (SEIA), numerous meetings and extensive comments.

Colluli is fully permitted for execution following the signing of a mining agreement between CMSC and the Eritrean Ministry of Energy and Mines and awarding of the requisite mining licences in early 2017.

READ: Danakali signs offtake deal for full production from Colluli Potash Project

The project is 100%-owned by CMSC, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO).

It is in the Danakil Depression region of Eritrea, East Africa, and is about 75 kilometres from the Red Sea coast, making it one of the world’s most accessible potash deposits.

Shallow resource

Mineralisation begins at just 16 metres and is suitable for open-pit mining, which allows higher overall resource recovery, is generally safer than underground mining and is advantageous for modular growth.

Colluli has a JORC-2012 compliant measured, indicated and inferred mineral resource of 1.289 billion tonnes for 260 million tonnes of contained sulphate of potash equivalent.

A simple representation of the mining method of the Colluli resource.

Colluli’s impact in Eritrea

Eritrea stands to benefit from the long-term economic, social and community dividends that Colluli will generate:

- Positive impact through infrastructure, job creation, taxes, royalties, and associated economic development;
- Creation of hundreds of permanent jobs for Eritrean nationals;
- Long term training for trades and professionals; and
- Potential for adjacent industry development – including infrastructure, mining services, transport and hospitality.

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