Danakali Limited - Pre-requisites for mining approvals application complete
African potash developer Danakali is rapidly advancing its Colluli project towards mine ready, formally submitting its Social and Environmental Impact Assessment to the Eritrean Ministry of Energy and Mines. This follows a positive adequacy assessment of the document by the Ministry of Land, Water and Environment relative to the SEIA terms of reference and represents the final step in meeting all relevant mining licence application pre-requisites ahead of the submission in the near future.
- Social and Environmental Impact Assessment formally submitted to Ministry of Energy and Mines
- Final step of Mining Licence Application pre-requisites complete
- Mining License Application currently being finalised for submission
Danakali Limited (ASX:DNK) (“Danakali” or the “Company”) is pleased to announce that the formal submission of the Social and Environmental Impact Assessment (“SEIA”) for the Colluli Potash Project (“Colluli”) is complete. The Ministry of Land, Water and Environment has completed an adequacy assessment of the document relative to the SEIA terms of reference. The results of this assessment are positive. All criteria for the Colluli Mining License Application have been met.
Danakali Managing Director, Paul Donaldson, said:
“We are very pleased to have passed the adequacy assessment for the social and environmental work and to have now completed the pre-requisites for the mining license application process. We are looking forward to submitting the mining license application in the near future, and working with the project stakeholders as we complete the permitting process. Colluli is rapidly advancing towards mine ready. The project demonstrates superior economic returns relative to other advanced sulphate of potash (SOP) projects throughout the world, has unrivalled diversification and growth potential, and is located at the epicentre of booming population growth. The project is positively unique and has no peer.”
- Submission of the Mining License Application
- Establishment of the Mining Agreement
- Focussed stakeholder engagement and public disclosure in line with the SEIA
The SEIA documents compliment and build upon the detailed baseline studies which were submitted in 2015, and are aligned to the Colluli Definitive Feasibility Study (“DFS”). Following the submission of the DFS to the Ministry of Energy and Mines in February, DFS stakeholder engagements were held with representatives and members of communities proximate to Colluli and the transportation route. The results of these engagements have been integrated with the SEIA and Social and Environmental Management Plans (“SEMP”), which have been conducted according to the Equator Principles. The Equator Principles are a risk management framework adopted by financial institutions for determining, assessing and managing environmental and social risk in projects. The engagements revealed overwhelmingly positive support for the project.
The SEMP includes details of the commitments for avoiding or reducing unwanted social and environmental impacts as well as plans for enhancing the benefits of the project to the regional population.
Socialisation of the SEIA and SEMP content with community representatives will now commence. This will build on the ongoing stakeholder engagement conducted over the previous years and the DFS specific focus group discussions and town hall meetings conducted in early 2016. The assessments and management plans will also be available on the Danakali website from the 2nd May until the 1 st July 2016.