Danakali to short-list mining contractors for Colluli

PERTH (miningweekly.com) – Potash developer Danakali has completed the expressions of interest process for mining contractors at its Colluli potash project, in Eritrea, saying the contract tendering process will start shortly.

The company received expressions of interest from mining contractors in Australia, South Africa and Africa, with Danakali telling shareholders on Wednesday that the shortlisted parties will have to formally bid in a competitive tendering process using further refined and detailed pit designs, and material movement schedules derived from the project’s feasibility study.

“This is another significant step in our preconstruction activities and we now look forward to the final refinement and optimisation of the mining schedules to support the mining contract bidding process,” said Danakali MD Paul Donaldson.

“This is a critical operational contract for the project and we are very pleased to have a high-quality group of candidates to progress to the competitive bidding phase.”

Fluor was previously appointed as the lead for the front-end engineering and design process for the project, supported by Global Potash Solutions, Knight Piesold and Elemental Engineering.

A 2015 feasibility study estimated that the Stage 1 development of Colluli will require a capital investment of $442-million. The study examined a two-module development with an expected production of 425 000 t/y of sulphate potash for the first five years of operation, increasing to 850 000 t/y for the remainder of the proposed 30-year mine life.

The Phase 1 development will include a project-owned and -built road, as well as a 900 000 t/y product export terminal.