Danakali has, on behalf of the Colluli Mining Share Company (CMSC), confirmed DRA Global as the preferred engineering, procurement and construction management (EPCM) provider for the Colluli potash project, in Eritrea.
This represents another critical milestone for the project, reinforcing that Colluli is execution ready, Danakali said on Thursday.
DRA will be responsible for all aspects of design, project management, procurement, construction management and supervision, as well as the commissioning of the complete process plant and associated infrastructure, including the provision of all temporary construction facilities.
It will also be responsible for awarding major contracts such as early works, earthworks, structural, mechanical, piping, electrical and instrumentation works, laboratory and permanent camp (including life support, freight and logistics).
Danakali, on behalf of CMSC, conducted a competitive EPCM tender process and evaluation for the project based on the front-end engineering design study.
The tenders were assessed by Danakali and multinational engineering consultants Turner & Townsend against strict, established evaluation criteria.
“We look forward to working with DRA in finalising the last few project sign-off gates and to commence project execution. Danakali and CMSC continue to achieve critical project and corporate milestones on the way to construction, commissioning and production at Colluli,” commented Danakali executive chairperson and CMSC director Seamus Cornelius.
“[Securing] the execution of this important potash project on the African continent is testament to DRA's position as the preferred technical partner for projects in Africa,” added DRA CEO Wray Carvelas.
The EPCM contract is a requirement of potential debt providers and is, therefore, pivotal to the debt fundraising process.
CMSC is a joint venture between Danakali and the Eritrean National Mining Company.
CMSC holds 100% of the Colluli project, which is fully permitted. Stage 1 of the project, which is expected to produce 472 000 t/y of sulphate of potash, is estimated to cost about $302-million to develop.