ASX- and LSE-listed Danakali has selected Earth Moving Worldwide as its preferred contractor for the Colluli sulphate of potash project mining services scope.
The mining services scope covers the pre-production period (development) plus the first five years of production. The scope includes the provision, operation and maintenance of excavation, haulage and dewatering equipment.
A competitive tendering process was conducted with technical support from AMC Consultants and Majesso Consulting. Both have considerable experience in managing mining tenders in developing countries.
Execution of the mining services contract is expected early in 2020 and production is expected to start in 2022.
The fully permitted Colluli project is located in Eritrea. Stage 1 of the project is expected to produce 472 000 t/y of sulphate of potash and will cost about $302-million to develop.