Danakali will use filtered seawater in game-changing production breakthrough at Colluli SOP Project in Eritrea

Danakali Ltd (ASX:DNK) (LON:DNK) (OTCMKTS:SBMSF) (FRA:SO3) has demonstrated economic, construction, operational and environmental optimisations at the Water Intake Treatment Area (WITA) using filtered seawater during extensive test-work in the pre-development process for Colluli Sulphate of Potash (SOP) Project in Eritrea. Colluli Mining Share Company (CMSC) will now rely on a combination of beach well intake, smaller pumping station and greater renewable energy to pump filtered seawater to the SOP processing plant at the Colluli mine site. CMSC is a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO). “A world-first” Executive chairman Seamus Cornelius said: “Using filtered seawater as an unlimited input in our production process is not only a world-first but also a long-term game-changer. “This will reduce capex, opex and sustaining capex over a very long time and will have a massively positive environmental impact onshore and in the Red Sea for the 200 years life of mine. “With the WITA redesign, our energy requirements are materially reduced, bringing us closer to our Zero Carbon goals. “I am extremely proud of our team in Canada who focused on developing and repeatedly testing the ore streams and other inputs to create the most operationally efficient and cost-effective SOP production method for Colluli which allows us to produce the required high quality and quantity of SOP for our offtake partners.” Water Intake Treatment Area advantages The proposed WITA boasts the following advantages: Has a materially smaller onshore and offshore footprint, significantly reducing the environmental impact particularly on the ocean flora and fauna; Requires an estimated 75%less power reducing opex, fuel costs and CO2 emissions. Colluli investigating renewable energy, solar, wind and battery storage option at redesigned WITA; and Requires less capex for a smaller plant at Anfile Bay driving economic and environmental improvements and materially reducing sustain capex required over the life of mine. Testing in 2015 proved that SOP could be made from Colluli ore, but only at higher water rates with Reverse Osmosis fresh water. What was achieved with recent test work with Saskatchewan Research Council in 2021 demonstrates that high-quality product only using seawater is assured.