Australian developer Danakali has awarded Fluor with a front-end engineering, design and optimisation (FEED) contract at the Colluli potash project in Eritrea, East Africa.
Colluli, which is close to the East African coast, is an advanced greenfield sulphate potash development with notable capital intensity and bottom quartile operating costs.
Fluor mining and metals president Rick Koumouris said the company would provide a highly qualified design and optimisation team for the project.
“In addition to working with Danakali to maximise project capital efficiency during the study and execution phases of this project, Fluor will bring top-notch project financing expertise and assistance to help Danakali advance this project to the next phase,” Koumouris said.
The contact value is yet to be disclosed.
Approval of the social and environmental impact assessment for the project was awarded by the Eritrean Government in December 2016. Progress towards the award of the mining agreement and mining licence is ongoing.
ASX-listed Danakali owns 50 per cent of the Colluli project, which it is developing in partnership with the Eritrean National Mining Company.