(Alliance News) - Danakali Ltd on Tuesday said it has made progress within the first phase of the engineering, procurement and construction management of the Colluli sulphate of potash project in Eritrea.
The project is 100% owned by the Colluli Mining Share Co, a equally-owned joint venture between Danakali and the Eritrean National Mining Corp.
The company said Colluli's project team, which includes key project personnel led by Project Director Tony Harrington, was established at the DRA Global office in Johannesburg, South Africa.
DRA Global is an engineering group.
Danakali said a number of workstreams commenced, with the start of review of Colluli front end engineering design. It includes developing and establishing of project systems, controls and progress measurement monitoring.
In addition, DRA Global has commenced project management activities and mobilised its own engineering group for the process plant and associated infrastructure work.
Meanwhile, Danakali said the agreement for the purchase of the reverse osmoses plant is nearing completion, with the order for critical equipment on track for February. The plant will consist of a pre-tested desalination facility for the on-site bores and portable water.
Looking ahead, Danakali said the second phase will start in mid-February, followed by geotechnical investigation works that will commence in March.
Data collected will help optimise the geotechnical foundation design and outline any other investigation work if required going forward, the company noted.
"We are near completion in formalising our partnership with DRA and are firmly moving into development phase with some key works and activities in progress," said Danakali's Harrington.
The stock was trading 1.5% lower in London on Tuesday at 32.50 pence a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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