PERTH (miningweekly.com) – Potash developer Danakali would initiate a scoping study into potential sulphate of potash magnesia (SOP-M) production from its Colluli project, in Eritrea.
The company said on Wednesday that it had produced high purity, chloride free SOP-M from the Colluli potash project using salts from the Colluli resource.
“We are very excited by the SOP-M product and its market potential. This high quality, multi-nutrient potash type is ideal for chloride intolerant crops in magnesium deficient soils, which predominantly occur in Africa, India, South America and China,” said Danakali MD Paul Donaldson.
“Three of these jurisdictions are proximate to Colluli, which is situated at the epicenter of population growth. The product also represents the diversification potential of Colluli, which will transform into a multi agri-commodity business over time.”
The scoping work planned would look at integrating a SOP-M circuit in the second phase of the Colluli development.
Donaldson said that Danakali had also started engaging with potential offtake partners for the SOP-M product, to determine the demand potential in South European, Middle Eastern and Indian markets.
A 2015 fefeasibility study into the Colluli project estimated that the Stage 1 development would require a capital investment of $442-million. The study examined a two-module development with an expected production of 425 000 t/y 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.