Danakali Ltd.'s joint venture company, Colluli Mining Share Co., reached a binding take-or-pay off-take deal with EuroChem Trading GmbH for up to 100% of the module-one sulfate of potash production from the Colluli potash project in Eritrea.
The agreement is for 10 years from the start of commissioning of the Colluli processing plant and can be extended by three years by mutual consent. EuroChem can terminate the agreement if commercial production has not started by July 1, 2022.
The buyer is expected to use a portion of the potash to produce complex nitrogen, phosphate and potassium fertilizers at its facilities in Antwerp, Belgium, and Nevinnomyssk, Russia. The balance will be sold through EuroChem's international channels. Colluli is a 50/50 joint venture with Eritrean National Mining Corp.
