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Danakali kicks off EPCM phase one at Colluli Sulphate of Potash Project

EPCM contractor DRA Global has started project management activities and mobilised its own engineering group for the process plant and associated infrastructure work.

Danakali Ltd - Danakali kicks off EPCM phase one at Colluli Sulphate of Potash Project
Colluli is a world-class SOP project in the Danakil Depression region of Eritrea

Danakali Ltd (ASX:DNK) (LON:DNK) has started the first phase of the Engineering, Procurement and Construction Management (EPCM) process at Colluli Sulphate of Potash (SOP) Project in Eritrea.

The Board of Colluli Mining Share Company (CMSC), which holds the project and is 50% owned by Danakali, has approved establishment of the Owner’s Project Team.

This team, which includes key project personnel led by project director Tony Harrington, has been embedded into the project team of EPCM consultant DRA Global.

FEED review underway

DRA has started a review of the Colluli Front End Engineering Design (FEED), which includes developing and establishing of project systems, project controls and progress measurement monitoring.

Since issuing a Notice to Proceed, DRA has also started project management activities and mobilised its own engineering group for the process plant and associated infrastructure work, which has started in Johannesburg.

The Water Intake Area (WITA) design is being undertaken and is underway at the DRA office in Cape Town.

“Pleased with progress”

Project director Tony Harrington said: “I am very pleased with the progress achieved since commencement.

“We are near completion in formalising our partnership with DRA and are firmly moving into development phase with some key works and activities in progress.

“As part of the mobilisation phase (I and II) the project team has put in place a robust execution strategy as a basis of delivery throughout the life of the project, which includes controls services, procurement and contracts and logistics coordination, engineering and construction management and HSE.”

Reverse osmosis plant

An agreement for the purchase of the reverse osmosis plant is nearing completion, with the order for critical equipment on track for February.

Delivery of this plant to site is planned to coincide with mobilisation of the Early Works Contractor.

The plant will consist of a pre-tested desalination facility for the onsite bores and portable water.

This facility will be used to provide potable and construction water before commissioning of the main Anfile Bay WITA.

All Owner’s Project Team personnel will be based at the DRA Global project office in Johannesburg during the first three EPCM phases.

Turner & Townsend, a multinational professional services company, will also provide a number of key members for all phases.

Phase II work plans

The phase II EPCM work will begin in mid-February to be followed by geotechnical investigation work starting in March 2020.

Data collected will help optimise the geotechnical foundation design and outline any other investigation work if required going forward.

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