Global engineering and construction company Fluor announced earlier this month that it had secured a front-end engineering, design and optimisation contract from ASX-listed potash producer Danakali for its Colluli potash project, in Eritrea.
Following a competitive tendering process, initiated and completed in 2016, Fluor has booked the undisclosed contract value in the first quarter of 2017.
“Fluor will provide a highly qualified design and optimisation team with world-class process infrastructure credentials for this important fertiliser project,” says Fluor mining and metals president Rick Koumouris.
He adds that Fluor will work closely with Danakali to ensure capital efficiency during the study and execution phases of the Colluli project. “Fluor will bring top-notch project financing expertise and assistance to help Danakali advance this project to the next phase.”
Danakali MD Paul Donaldson says: “The combination of Fluor’s values, people, reputation, optimisation approach, mining and metals expertise, experience in Africa and potash-specific experience will benefit the project significantly as it progresses towards construction.”
Colluli is one of the most advanced greenfield sulphate of potash developments in the world and demonstrates outstanding economics, including industry-leading capital intensity, bottom-quartile operating costs, close proximity to the coast and key markets, and unrivalled product diversification potential. Sulphate of potash is a high-quality potash fertiliser used for crop development and yield improvement worldwide.
The Colluli deposit is located in the Danakil region of Eritrea, about 177 km south-east of the capital, Asmara, and 230 km by road from the Port of Massawa, which is Eritrea’s key import-export terminal.
Approval of the social and environmental impact assessment for the project was given by the Eritrean Ministry of Land, Water and Environment in December last year. The award of the mining agreement and mining licence for the project is at an advanced stage.
Danakali is a 50% owner of the Colluli project, which it is developing in partnership with the Eritrean National Mining Company.