Danakali Limited-Preferred power provider for Colluli Sulphate of Potash Project appointed

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Danakali Ltd. (ASX:DNK; OTC:DNKLY) and its Joint Venture Partner, the Eritrean National Mining Corporation (“ENAMCO”) are pleased to advise that Inglett and Stubbs International (“ISI”) has been appointed as the preferred power provider for the Colluli Sulphate of Potash Project. The appointment follows a competitive tendering process utilising a build-own-operate-transfer (BOOT) model.

In January 2017, expressions of interest were received from power providers based in the Middle East, Australia, Africa, the United States and the United Kingdom. The shortlisted parties formally bid in a competitive tendering process based on the technical specifications determined in the definitive feasibility study. The bids were received in April, and subsequent evaluation of the proposals received demonstrated very close alignment with the power generation costs determined in the definitive feasibility study. Work will now commence on further refining and optimising the proposal and aligning the final requirements to the front-end engineering design outcomes prior to finalising commercial terms of the engagement.

Managing Director, Paul Donaldson commented, “We are very pleased to have identified ISI as the preferred power provider for the Colluli project and look forward to working with them on refining the proposal and integrating it with the outcomes of the front-end engineering design work. We are also very pleased with the close alignment between the DFS estimates and the proposals received.”

ISI, based in Atlanta, Georgia, United States, is a highly experienced, global provider of power generation, distribution and communications facilities. With a long term partnering approach, ISI provides turnkey solutions, facilities and critical infrastructure, operations and maintenance services, and full service electrical and communications services. They have extensive experience in providing power generation facilities to the mining sector throughout the Middle East and Africa.

Key Points

• Inglett and Stubbs International (ISI) has been appointed as the preferred power supplier for Colluli potash project

• Initial bid provides power generation cost estimates within 1.5% of definitive feasibility study with marginally lower development capital

• ISI to work with project team to further optimise power solution with focus on cost compression

• ISI solution to be integrated into front end engineering design which is currently underway and is progressing well

 

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