Danakali has signed memorandums of understanding (MoUs) with eight multi-national companies for the offtake of sulphate of potash (SOP) from its Colluli potash project in Eritrea.
The project is 100% owned by the Colluli Mining Share Company (CMSC), which is equally-owned by Danakali and Eritrean National Mining.
The MoUs have been signed with companies throughout Northern Africa, Europe, Middle East and North America.
Danakali said that the combined offtake volumes in the MoUs are more than 800ktpa in standard as well as granular form.
The team at Colluli released a favourable definitive feasibility study (DFS) for the project on 30 November 2015, which was completed by mining, engineering, civil and environmental consultants.
The Danakil basin potentially comprises unexploited potash geological setting.
In March 2016, Danakali completed a raising of about A$5.5m to commence front end engineering design work at the project.
The company also initiated the mine contract tendering process, completed the mining approvals process, secured offtake arrangements and project funding and working capital.
Danakali managing director Paul Donaldson said: “We are happy with the progress that has been made to date on the Colluli project.
“The outcomes of the DFS demonstrate that Colluli is positively unique.
“The signed MoUs and negotiations underway with potential offtakers highlight that SOP is, and will continue to be, a product in high global demand.”