Industry & Services
Business & education services
Rachel Middleton
https://www.proactiveinvestors.co.uk/co ... 30968.html
Thu 08 Oct 2020
Danakali appoints Aggreko as preferred power contractor for Colluli Potash Project
Aggreko will provide full scope of support services for the supply, commissioning, and maintenance of the power plant.
Colluli is 100%-owned by the Colluli Mining Share Company, a 50:50 JV between Danakali and the Eritrean National Mining Corporation
Danakali Ltd’s (
ASX:DNK) (
LON:DNK) Colluli Mining Share Company (CMSC) has appointed Aggreko PLC
https://www.proactiveinvestors.co.uk/LON:AGK/Aggreko/ (
LON:AGK) as preferred power supply contractor for the 12MW thermal heavy fuel oil (HFO) power plant at Colluli Potash Project in Eritrea, East Africa.
Aggreko
https://www.proactiveinvestors.co.uk/LON:AGK/Aggreko/ will provide full scope of support services for the supply, commissioning and maintenance of the power plant, then transfer to CMSC, under a five-year buy-own-operate-transfer contract.
The supplier will also provide the funding for the power solution, which provides certainty over the delivery of this preferred solution.
Single power provider
Danakali chief executive officer
Niels Wage said:
With 55 years of experience in delivering high-quality, reliable service to a large number of projects we are confident they (Aggreko) have the capabilities to provide our power needs for Colluli.
At the early stages of the project development, the HFO solution will provide us with flexibility and reliability, and as confirmed by SEIA, Colluli will have a relatively small impact on the environment.
Going forward, once project development is in more of a steady-state, we will look to diversify our energy sources towards renewables available in the Danakil region, as per our commitment to sustainable and environmentally friendly solutions.
Power scaleable
The costs of the power solution provided by Aggreko over the five-year contract period is lower than the FEED study results.
This power solution is scalable and can increase or decrease according to CMSC’s needs.
The agreement is subject to:
➢ The conclusion of ongoing negotiations to optimise the scope of works, contract pricing and execution; and
➢ Board approval of the final investment decision.
Delivering complex power plant solutions
Aggreko has nearly 60 years of experience in delivering complex power plant solutions to projects in challenging locations.
They are world-leading providers of mobile, modular, temperature control and energy services.
The company provides short-term hire and longer-term power solutions to a diversified customer base in mining, oil & gas, utilities, petrochemicals & refining.
It operates in around 100 countries around the world, of which 35 are in the African continent, including providing off-grid power solution to a mining company in Eritrea since 2012.
Colluli project
Colluli is 100%-owned by CMSC, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO).
The Colluli project is in the Danakil Depression region of Eritrea and around 75 kilometres from the Red Sea coast, making it one of the most accessible potash deposits globally.
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CMSC appoints Aggreko as power supply contractor for Colluli plant
8th October 2020
BY: TASNEEM BULBULIA- CREAMER MEDIA REPORTER
https://m.miningweekly.com/article/cmsc ... ep_id:3861
Dual-listed Danakali has announced that Colluli Mining Share Company (CMSC) has appointed Aggreko as its preferred power supply contractor for a 12 MW heavy fuel oil (HFO) power plant at the Colluli sulphate of potash project in Eritrea.
A 12.36 MW thermal HFO solution was chosen as the most effective option for Module 1.
Aggreko will provide the funding for the power solution, which Danakali says provides certainty over the delivery of this preferred solution.
Aggreko will also provide the full scope of support services for the supply, commissioning and maintenance of the power plant and then transfer it to CMSC.
The costs of the power solution provided by Aggreko over the five-year contract period is lower than those set out in the front-end engineering design study, Danakali points out.
The agreement with Aggreko is subject to the conclusion of ongoing negotiations to optimise the scope of works, contract pricing and execution; and board approval of the final investment decision.
We are very pleased to announce the appointment of Aggreko as our single power provider. With 55 years of experience in delivering high-quality, reliable service to a large number of projects we are confident they have the capabilities to provide our power needs for Colluli.
At the early stages of the project development, the HFO solution will provide us with flexibility and reliability, and as confirmed by the Solar Energy Industries Association, Colluli will have a relatively small impact on the environment.
Going forward, once project development is in more of a steady state, we will look to diversify our energy sources towards renewables available in the Danakil region, as per our commitment to sustainable and environment-friendly solutions,
says Danakali CEO
Niels Wage.
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Aggreko signs solar-diesel power deal in Eritrea
Danakali selects Aggreko to power Colluli
https://www.miningmagazine.com/country/eritrea
Australian potash producer Danakali has contracted British energy services firm Aggreko to set up a 12 MegaWatt heavy fuel oil (HFO) power plant at its Colluli sulphate of potash mine project in Eritrea.
Danakali’s Colluli potash project is located in Eritrea within the Danakil Depression, an emerging potash province that traverses parts of both Eritrea and Ethiopia
Dual-listed potash developer Danakali, through the Colluli Mining Share Company has appointed Aggreko as its preferred power supply contractor for its 12 MW heavy fuel oil power plant at the Colluli potash project in Eritrea.
Aggreko will provide full scope of support services for the supply, commissioning, and maintenance of the power plant, then transfer to Colluli Mining Share Company, under five-year
Buy Own Operate Transfer, or BOOT contract.
Moreover, Aggreko
https://www.miningreview.com/energy/min ... solutions/ will provide the funding for the power solution which provides certainty over delivery of this preferred solution.
According to Aggreko Africa MD
John Lewis, Aggreko has extensive experience in Eritrea and knowledge of the local market making it ideally placed to provide a solution that meets the specific needs of Danakali and deliver a reliable power supply for this project.
The agreement is a BOOT contract, as the equipment is available now and does not need to be built, and de-risks the project development schedule. The equipment can therefore be mobilised at short notice as required during the development of the project.
The costs of the power solution provided by Aggreko
https://www.aggreko.com/en-za/sectors-a ... ces/mining over the five-year contract period is lower than the FEED study results. Aggreko is funding the capex required for the power plant an all equipment will be transferred to CMSC at no extra cost at the end of the contract period. This power solution is scalable and can increase/decrease according to CMSC’s needs.
The agreement with Aggreko is subject to the conclusion of ongoing negotiations to optimise the scope of works, contract pricing and execution; and board approval of the final investment decision.
With 55 years of experience in delivering high-quality, reliable service to a large number of projects we are very pleased to appoint Aggreko as our single power provider and are confident they have the capabilities to provide our power needs for Colluli,
says Danakali CEO
Niels Wage.
At the early stages of the project development, the HFO solution will provide us with flexibility and reliability, and as confirmed by the social and environmental impact assessment, Colluli will have a relatively small impact on the environment. Going forward, once project development is in more of a steady state we will look to diversify our energy sources towards renewables available in the Danakil region, as per our commitment to sustainable and environmentally friendly solutions,
Wage notes.
Colluli at a glance
The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally.
The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. SOP is a chloride free, specialty fertiliser, which carries a substantial price premium relative to the more common potash type; potassium chloride (or MOP).
A binding take-or-pay offtake agreement has been confirmed with
EuroChem for up to 100% (minimum 87%) of Colluli Module I SOP production.
Development Finance Institutions, Africa Finance Corporation and African Export Import Bank (Afreximbank), have obtained formal credit approval to provide CMSC with US$200 million in senior debt finance. The credit documentation was executed in December 2019, allowing drawdown of CMSC senior debt on satisfaction of customary conditions precedent.
This represents the majority of funding required for the development and construction of the Colluli. AFC has also executed a subscription agreement to make a US$50 million strategic equity investment in Danakali. The receipt of the first tranche of US$21.5 million allowed commencement of the development.
Project execution has commenced, and SOP production is expected during 2022.
The company’s vision is to bring Colluli into production using the principles of risk management, resource utilisation and modularity, using the starting module (Module I) as a growth platform to develop the resource to its full potential.
Danakali CEO Niels Wage speaks to Mining Review Africa Senior Deputy Editor Chantelle Kotze about how its Colluli potash project, which will soon enter the construction phase, will become a strategic future supplier of premium, high-value sulphate of potash.
Aggreko Africa MD John Lewis unpacks how Aggreko is delivering long-term solutions to give mines the most efficient operations and help them overcome geographical and infrastructural challenges.
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Danakali appoints Aggreko as power contractor at Colluli
Oct 8, 2020
https://www.miningreview.com/energy/dan ... t-colluli/
(Very happy to take up my duties today in Asmara as Ambassador of France to Eritrea)
