PERTH (miningweekly.com) – Eritrea's Ministry of Land, Water and Environment has approved ASX-listed Danakali’s social and environmental impact assessment (SEIA) for its Colluli potash project.
Danakali reported on Tuesday that the approval of the SEIA represented a critical milestone in the advancement of the Colluli project. The SEIA paved the way for the approval and issue of the mining licence and final project development approvals.
“This is a significant positive step in the approvals process and is the outcome of a very comprehensive body of work, which was conducted throughout the feasibility phase, and a thorough review by representatives of the Ministry and the Impact Review Committee,” said Danakali MD Paul Donaldson.
He said the company continued to progress its mining agreement and mining licence and was positive that it could conclude these steps shortly.
The mining agreement and licence are the final approvals outstanding.
A 2015 feasibility study estimated that the Stage 1 development of Colluli would 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 would include a project-owned and -built road, as well as a 900 000 t/y product export terminal.