DJ Danakali Considers Options for Eritrean Potash Project on Dimming Production Hopes
By Matteo Castia
Danakali Ltd. said Friday that it is unlikely that the production targets at its Colluli potash project in Eritrea will be met and that it is therefore considering all options for the development of the site.
The Australian miner said meeting the 2022 production target date depends on closing out funding and starting construction early in 2021, but that chances of this happening are diminishing.
"Danakali's share price performance in 2020 has been, at best, very disappointing [...] We have not made the progress we expected to make on the development of Colluli in 2020," Chairman Seamus Cornelius said.
Danakali is developing Colluli with the Eritrean National Mining Corp. in a half-owned joint venture called Colluli Mining Share Co.
London-listed shares at 0823 GMT were down 2.5% at 19.5 pence.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
December 04, 2020 03:28 ET (08:28 GMT)
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