Potash executive to drive operations at Danakali’s Colluli project
Special Report: Danakali (ASX:DNK) has strengthened its potash mining and processing knowledge with the appointment of Dr Rod McEachern as its new chief operating officer.
The appointment is timely given that the company is heading towards the third phase of development at its Colluli project, which will allow him to leverage his successful track record in managing potash mines and processing plant operations, technical knowledge and project management.
Dr McEachern, who was most recently the director for process and product innovation at Nutrien and PotashCorp, will be responsible for the design and set up of the Colluli operation.
This includes safe and sustainable mining and processing operations for Colluli Mining Share Company.
“There are few people in the world with the unique potash experience that Rod brings and I believe his well-established industry experience, technological competencies and long commitment to the industry sector will be very valuable for Danakali as we advance the development of Colluli,” chief executive officer Niels Wage said.
Meanwhile, Dr McEachern says he was drawn to Colluli due to the large, long-life nature and high quality of the project.
“Being part of a team responsible for delivering sustainable financial, social and economic returns to our shareholders and stakeholders in Eritrea is highly attractive,” he added.
Colluli has a giant resource of 1.289 billion tonnes grading 11 per cent K2O, or about 260 million tonnes of sulphate of potash (SOP), enough to support production for more than 200 years.
SOP is considered a premium fertiliser as it not only provides both potassium and sulphur – key elements required for the healthy growth of plants – but also contains no chloride.
That makes it suitable for leafy, chloride-intolerant crops that are typically high-value, such as avocados, citrus fruits, nuts and berries.
Colluli has a low cost of mining estimated at less than $US150 per tonne even at start up scale, allowing it to deliver cash of $US85m per annum and an internal rate of return of 31.3 per cent over the first 60 years of production.
This article was developed in collaboration with Danakali, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.