JOHANNESBURG (miningweekly.com) – ASX-listed Danakali has awarded engineering and construction company Fluor the front-end engineering and design (Feed) and optimisation contract for the Colluli potash project, in Eritrea.
The award followed a competitive tendering process that was completed in 2016.
Fluor will book the undisclosed contract value in the first quarter of this year.
“Fluor will provide a design and optimisation team with process infrastructure credentials for this important fertiliser project,” says Fluor mining and metals business president Rick Koumouris.
The company will also provide project financing assistance to help Danakali advance the project to the next phase.
Colluli is 177 km south-east of the Eritrean capital Asmara and 180 km from the Port of Massawa – Eritrea’s key import and export entry.
Eritrea's Ministry of Land, Water and Environment in December approved the social- and environmental-impact assessment for the project.
A 2015 feasibility study outlined 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.