Potash Project Approvals on Track and Positive Outcomes from SEIA and SEMP

Development News
Colluli Potash Project
Two-month public review period for Colluli social and environmental impact assessment (SEIA) and associated management plans (SEMP) are now complete and available to the international community. So far it received only positive feedback.

By ASX Release,

Danakali Limited (ASX:DNK) (“Danakali” or the “Company”) is pleased to announce that, consistent with the requirement of the Equator Principles, opportunity for public review of the social and environmental impact assessment (SEIA) and associated management plans (SEMP) was provided and the two-month review period is now complete.

The Equator Principles is a framework adopted by financial institutions for determining, assessing and managing environmental and social risks in projects.

Feedback received from the public review process has been positive. No issue have been raised from the public review and feedback process. The documentation was submitted on behalf of the Colluli Mining Share Company (CMSC) which owns 100% of the world class Colluli Potash Project.

Managing Director, Paul Donaldson said

“This is a great and reinforces the excellent work done to date to support the project development. The work was effectively made available to the international community, and received only positive feedback. We are also happy to have a site visit, in recent weeks, from the relevant Eritrean ministries to support the mining license application process.”

The Colluli project’s definitive study (DFS) was completed in November 2015, and is currently awaiting mining license approvals. Representatives from government ministries assigned to the approvals process visited site in June to assist with evaluation of the social, environmental impact assessments and associated management plans.

Funding discussions are underway and the company has signed memorandums of understanding for 800,000 tonnes of sulphate of potash per annum.

The DFS indicates industry leading capital intensity, bottom quartile operating costs and an ore reserve of 1.1 billion tonnes.


  • Public review period for Colluli Social and Environmental Impact Assessment (SEIA) and associated management plans (SEMP) now complete
  • All documentation was made publicly available for the two-month review period
  • Only positive feedback was received on content, quality and comprehensiveness of the assessment and management plans
  • Colluli and SEMP completed consistent with the Equator Principles
  • Review period commenced immediately following the submission of the SEIA and SEMP documentation to the Ministry of Energy and Mines
  • Over 500 local residents have been included in stakeholder engagements with overwhelming support by local and regional communities
  • Ongoing community, local government and stakeholder engagements planned throughout the rest of the year leading up to construction activities
  • Mining license application process continues with progress and relevant government ministry representation visiting the future Colluli mine site last week.