Colluli
Colluli: There is only one
The Project is located in Eritrea and is ~75km from the Red Sea coast, making it the most accessible known potash deposits globally. The Project carries a low level of complexity due to the unique geology of the salt deposit amenable to open-cut mining, creating predictable processing outcomes, plant feed grade, and production rates using simple, commercially proven mineral processing technology. Colluli has also been recognised in a favourable report from the United Nations Development Program that this development could meet an unprecedented 13 out of a possible 17 of its sustainable development goals.
One of a kind deposit
Superior economics
Colluli is the premier greenfield development project globally. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns.
Front End Engineering Design (FEED) strongly confirms Colluli as one of the world’s most economically attractive and fundable SOP greenfield development projects.
Net present value
(NPV) of US$902M
Internal rate of return (IRR) of 29.9%
First quartile operating costs of <US$150/T (Mine gate)
Substantial deposit
The Colluli deposit comprises a massive JORC-2012 compliant Ore Reserve estimate of 1,100Mt @ 10.5% K2O for 203Mt of contained SOP equivalent, providing a mine life of almost 200 years. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource.
Measured Mineral Resource
Indicated Mineral Resource
Inferred Mineral Resource
Shallowest known evaporite deposit globally
With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. Open-cut mining is a proven mining method for salts, and it’s safer and more cost-effective than underground mining, which allows for better overall resource recovery.
In addition to these benefits, our grade control drilling provides us to approach the open cut mine plan with a high degree of selectivity and certainty. In turn, the well-defined geological features support our ability to maximise the multi salt deposit potential. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us
A favourable combination of salts
The Colluli resource contains kainitite, sylvinite and carnallitite ores. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate.
Extraction of the salts in solid form is a crucial positive differentiator of Colluli. All primary production of potassium sulphate from kainitite worldwide commence with low potassium content brines, which require substantial solar evaporation to generate a harvest salt for subsequent processing. In some cases, depending on the ambient conditions, this process can take over two years.
One of the essential benefits of having the salts in solid form is that it takes between 2-3 weeks to mine, process and transport our SOP to Massawa Port. The benefits of this mean we generate cash flow much earlier and more predictably relative to solution mining or brine operations.
Kainitite
Sylvinite
Carnallitite
Strategic location
Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road southeast of the port of Massawa, which is Eritrea’s key import/export facility.
The proximity to the coast and the established port infrastructure in the Port of Massawa gives Colluli unrivalled access to global export markets, and it also decreases logistics costs from the mine gate onto the ship
Installation of an export terminal at Anfile Bay would decrease the length of the land transport route from 230 to only 87 km, thus further lowering the logistics costs required to satisfy the multi-commodity trade in and out of Eritrea.
High purity product
Test work on the Colluli salts has been concluded. The process flow design is frozen, indicating that the Colluli process using filtered seawater will produce SOP at expected volumes and at the high-grade spec the world requires.
The Colluli process is expected to generate a product with a purity of 94.5%. Standard, granular and soluble products can be produced for distribution to the market. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers.
Significant upside
Colluli has significant multi-commodity potential presenting major additional value upside. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. The Project has unrivalled potash product versatility.
Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. A port development at Anfile Bay could assist in unlocking this potential.
