Modern Mining June 2017

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June 2017MODERN MINING15
MINING News
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Preferred power provider selected for Colluli
Danakali, listed on the ASX, and its joint
venture partner, the Eritrean National
Mining Corporation (ENAMCO), have
announced that Inglett and Stubbs
International (ISI) has been appointed
as the preferred power provider for the
Colluli Sulphate of Potash (SOP) project.
The appointment follows a competitive
tendering process utilising a build-own-
operate-transfer (BOOT) model.
In January 2017, expressions of interest
were received from power providers based
in the Middle East, Australia, Africa, the US
and the UK. The shortlisted parties submit-
ted bids in a competitive tendering process
based on the technical specifications deter-
mined in the definitive feasibility study. The
bids were received in April and subsequent
evaluation of the proposals received dem-
onstrated very close alignment with the
power generation costs determined in the
definitive feasibility study.
ISI, based in Atlanta in the US, is a highly
experienced, global provider of power
generation, distribution and communica-
tions facilities. With a long-term partnering
approach, ISI provides turnkey solutions,
facilities and critical infrastructure, opera-
tions and maintenance services, and full
service electrical and communications
services.
The Colluli deposit is located in the
Danakil region of Eritrea and is approxi-
mately 177 km (350 km by road) south-east
of the capital, Asmara, and 180 km from the
port of Massawa (230 km by road), which is
Eritrea’s key import/export facility.
The Colluli mineralisation commences
at just 16 m below surface, reportedly mak-
ing it one of the most accessible potash
deposits globally and highly amenable
to open-cut mining. This provides higher
resource recoveries relative to underground
and solution mining methods, is generally
safer, and can be more easily expanded.
A definitive feasibility study (DFS) for the
production of potassium sulphate was com-
pleted in November 2015. The DFS utilises a
modular development approach which mit-
igates risk while enhancing fundability and
economic return. Phase I is expected to pro-
duce approximately 425 kt/a of premium
SOP product with commissioning currently
targeted for Q4 2018. Phase II, commencing
production in year 6, will increase total SOP
production to 850 kt/a. 
Multi-disciplinary international engi-
neering group DRA has been appointed
by JSE-listed Pan African Resources to
deliver a detailed design and construction
supervision service for the Elikhulu gold
tailings retreatment plant facility planned
for Pan African’s Evander operation in
Mpumalanga.
This is a substantial project rela-
tive to the size of Pan African Resources’
operations in the Evander area and will
reportedly be a game-changer for Evander.
The project is equally important to DRA as
the lead contractor.
“This is DRA’s first gold tailings retreat-
ment plant development and it includes
all aspects of the construction, including
hydraulic mining, processing and tailings
deposition,” says Paul Howard at DRA.
“The Elikhulu project is valued at circa
R1,6 billion and entails the construction
of facilities and infrastructure at Evander
to retreat gold plant tailings at the rate of
1 million tonnes per month.”
DRA’s scope of services through all
stages of the project encompasses the
reclamation of the three existing stor-
age facilities, namely Kinross, Leslie and
Winkelhaak. Furthermore, the project
scope includes the water supply to the
project as a whole and the water supply to
each of the reclamation sites; the hydraulic
mining infrastructure; and a new carbon in
leach (CIL) gold recovery process plant.
DRA will also be responsible for the
pump and piping systems to transfer the
hydraulically mined tailings slurry to the
new CIL process plant; the residue disposal
pumps and piping systems to deposit the
tailings on a new Tailing Storage Facility
(TSF); and the construction of the new TSF.
According toDRA, its competitive advan-
DRA appointed as lead contractor for Elikhulu
tage over other bidders for the project lay
in the fact that the engineering firm was
involved with Pan African Resources from a
Definitive Feasibility Study phase and was
able to ensure a cost effective, fit-for-pur-
pose, technically appropriate solution.
“The team involved in the study phase
(and who will also be executing the proj-
ect) have managed many projects with an
array of challenges including schedule and
capital expenditure constraints as well as
limited water availability, all of which were
overcome to implement the project plans
successfully,” says Howard.
He adds that DRA has developed a
good working relationship with all team
members, both on an executive and opera-
tional level, and will leverage this alliance
to further establish a long-term partner-
ship with Pan African Resources.
The new CIL process plant will be com-
missioned in the fourth quarter of 2018
and the final phase of the TSF will be com-
plete in the first quarter of 2019. 