Fluor Corp. (Irving, Tex.; www.fluor.com) was awarded a front-end engineering, design and optimization (FEED) contract by Danakali Ltd. in Eritrea, East Africa for the Colluli Potash Project following a competitive tendering process initiated and completed in 2016. Fluor will book the undisclosed contract value in the first quarter of 2017.
Colluli is one of the most advanced greenfield sulfate of potash developments in the world and demonstrates outstanding economics including industry leading capital intensity, bottom quartile operating costs, close proximity to the coast and key markets, and unrivaled product diversification potential. Sulfate of potash is a high quality potash fertilizer used for farming crop development and yield maximization around the globe.
The Colluli deposit is located in the Danakil region of Eritrea, East Africa. Colluli is approximately 177 km southeast of the capital, Asmara, and 180 km from the port of Massawa (230 km by road), which is Eritrea’s key import-export entry.
Approval of the social and environmental impact assessment for the project was given by the Ministry of Land, Water and Environment in December 2016. The award of the Mining Agreement and Mining License for the project is well progressed.
Danakali is an ASX-listed company and 50% owner of the Colluli Potash Project in Eritrea, East Africa. The company is currently developing the Colluli Project in partnership with the Eritrean National Mining Company (ENAMCO).