Danakali Announce Offtake MOUs Signed for Second Potash Product: SOP-M

Highlights

• MOUs signed for 200kt per annum of sulphate of potash magnesia (SOP-M) offtake
• Offtake discussions progressing towards binding agreements
• This is in addition to the recently announced MOU’s signed for 800ktpa of the company’s primary product stream, sulphate of potash (SOP)
• Current capacity for the first production module of the Colluli development is 425ktpa SOP
• SOP-M is the second in a growing pipeline of premium products that can be produced from the globally unique evaporative deposit at Colluli
• Colluli SOP-M is a highly soluble, chloride free, multi-nutrient potash product with growing demand as an excellent source of nutrients for use in greenhouses, liquid fertilisers and chloride intolerant crops
• SOP-M has the potential to add significant value to the Colluli project as a second revenue source, and currently trades in excess of US$450 per tonne
• SOP-M demand is increasing but it has limited production centres globally and is supply constrained
• Clear demonstration of the unique product diversification potential offered by the Colluli resource

Danakali Ltd. (ASX:DNK; OTC:DNKLY) is pleased to announce that it has signed non- binding MOUs for the supply of 200,000 tonnes per annum of potassium magnesium sulphate (sulphate of potash or SOP-M). SOP-M represents the second premium, chloride free, multi-nutrient potash type from the Colluli resource, which is one of the closest potash deposits to a coastline globally, and is the shallowest known evaporite deposit in the world.
Danakali Managing Director, Paul Donaldson commented:
“We are pleased with the high level of interest for the suite of premium, chloride free, multi-nutrient fertiliser products we have generated from the potassium salt suite within the Colluli resource. The signed MoUs and negotiations underway with potential offtakers highlight that soluble, chloride free, multi- nutrient potash types are in high global demand. This is particularly relevant as the focus on fertiliser and water efficiency improvements continues. Being able to supply product samples generated using the process design and Colluli salts has been extremely advantageous in market engagement activities. SOP- M is quite simple to produce utilising the processing design developed for the Colluli DFS.”
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