DANAKALI LTD
MINING
Potassium sulphate ( SOP ) is a geologically scarce resource with strong demand growth drivers , and a favourable agriculture commodity of the future .
Capital Intensity and Operating Costs Low capital intensity and operating costs are achieved as a result of the extraction of the potassium salts in solid form . All primary producers of SOP commence with potassium rich brine which requires large amounts of evaporation , and a large area of evaporation ponds to generate a harvest salt for further processing . Colluli has the unique advantage of starting with salts in solid form , which minimises both footprint size and capital investment . The favourable combination of salts also gives a high potassium yield which lowers the overall operating costs .
Diversity and marketability The diversity if potassium bearing salts within the resource allows Colluli to produce a range of potash fertiliser types including potassium sulphate , potassium magnesium sulphate and potassium chloride . In addition , it also has huge upside potential with appreciable volumes of rocksalt , magnesium chloride and gypsum also present in the resource .
“ The potassium salt diversity of the Colluli resource cannot be matched by any other potash basin in the world ,” Donaldson added . “ We have a massive resource , the ability to diversify potash type , are close to the coast and key markets , and exposure to huge upside potential with a suite of non-potassium salts that have well established markets .”
“ There are only three major primary producers in the world making potassium sulphate . The market dynamics are highly favorable for us .”
Location Being close to the coast makes the Colluli resource one of the most accessible potash deposits in the world . “ Logistically , Colluli is simple relative to many planned greenfield developments , and the East Africa location is highly advantageous relative to key potential markets in the Middle East , India , East Asia and Africa ” said Donaldson .
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