“Colluli is a mining project with a life span of 200 years, the rock salt resource represents another potential source of income for Colluli and reinforces Colluli’s main business model. We believe that the development of the new generation of sodium-ion batteries is an opportunity that complements other potential end uses of our mined rock salt given Colluli’s proximity to regional markets, ”said the president.
Danakali Ltd (ASX: DNK, LSE: DNK, OTC: SBMSF) is preparing to capitalize on recent rock salt spot price gains, by leveraging rock salt resources from its Colluli Sulphate of Potash (SOP) project in Eritrea, which has the world’s largest JORC potash resource with a SOP solid salt reserve of 1.1 billion tonnes and a rock salt resource of 347 million tonnes at 96.9% sodium chloride.
DNK views Colluli rock salt as a potentially economical resource due to the positive changes in the rock salt market brought about by a new generation of sodium-ion batteries developed by CATL.
These new sodium ion-e cells are able to charge faster and operate at lower temperatures than lithium-ion batteries, with the added bonus of 30% lower raw material production costs.
Rock salt prices have increased rapidly year over year, averaging about 47% growth according to this metric, with the current average price hovering between US $ 50 and US $ 60 / tonne. Rock salt is considered a potential source of sodium necessary for the mass production of sodium-ion batteries.
Other major applications of rock salt include its use in icebreaking, water treatment, and in the chemical, aluminum, petroleum, paper, textile and food industries.
“Another potential source of income”
Danakali Chairman Seamus Cornelius said: “Colluli is a 200 year mine life project, the rock salt resource represents another potential source of income for Colluli and strengthens Colluli’s core business model.
“We believe that the development of the new generation of sodium-ion batteries is an opportunity that complements other potential end uses of our mined rock salt given Colluli’s proximity to regional markets. “
Although the primary focus of the Colluli project is potash, the project’s mining plan already requires Danakali to mine the upper rock salt layer above the project’s SOP mineral resource to access the target salt layers of carnallitite, de sylvinitite and kainitite which begin 16 meters below the surface.
Colluli has the potential to produce 96.9% pure rock salt which was previously described as waste from the surface mining process.
Potash mining under the project during Modules 1 and 2 will produce approximately 128 million tonnes of rock salt at an annual production rate of 1.8 million tonnes per year, which will be stored for the export from the proposed Anfile Bay export terminal within the first 60 years.
Danakali Ltd (ASX: DNK, LSE: DNK, OTC: SBMSF) focuses on the development of the Colluli Sulphate of Potash project in Eritrea, East Africa.
The company is evaluating renewable solar, wind and geothermal energy options to become a zero carbon company in the production of SOPs in its Colluli project.
Its vision is to bring Colluli into production using the principles of risk management, resource utilization and modularity as a growth platform to develop the resource to its full potential.