Erena News: 31 January 2023
The Australian Mining giant Danakali which owns 50% of the Eritrean Colluli potash mining project sold its share to the Chinese Sichuan Road and Bridge Group. The French economic website Agence Ecofin reported the news saying that the Australian mining corporation didn’t reveal the reasons behind selling its share in the project.
Colluli Potash project is situated in Bada area, 180 km southwest of Massawa port.
Danakali sold its share at 166 million USD, the Eritrean government will earn 45 million USD as a sales tax said the website quoting Danakali which announced the news on Jan.12.
The government owned Eritrean National Mining Corporation (ENAMCO) owns 50% of the project. Colluli project is the most promising mining project in the country with reserves estimated at 1.1 billion tons of Potash. The project, which will generate 50% of Eritrea’s hard currency in the future, is expected to produce potash for the next 200 years.
The deal comes as a landmark in the growing Eritrean Chinese business relations.