Advanced sulphate of potash explorer Danakali (ASX: DNK) has firmed up its executive team after appointing industry expert Rod McEachern as chief operating officer.
Prior to joining Danakali, Mr McEachern was director for process at product innovation at Nutrien and PotashCorp.
According to Danakali, Mr McEachern has a long track record of successfully managing potash mines and processing plant operations.
The company also claims he is “highly experienced” as an executive and has the required technical knowledge and project management capabilities to advance the flagship Colluli potash project in Eritrea towards production.
Mr McEachern’s appointment will take effect from 3 December 2020 and he will be responsible for design and set up of operation readiness. This will include safe and sustainable mining and processing operations.
Commenting on Mr McEachern’s appointment, Danakali chief executive officer Niels Wage said it comes at an opportune time as development of Colluli moves into phase three.
“There are few people in the world with unique potash experience that Rod brings and I believe his well-established industry experienced, technical competencies and long commitment to the sector will be very valuable for Danakali as we advance the development of Colluli,” he added.
Meanwhile, Mr McEachern said he was drawn to the large, long-life nature of Colluli.
Colluli potash joint venture
Danakali owns 50% of Colluli via joint venture entity Colluli Mining Share Company. The Eritrean National Mining Corporation holds the other 50%.
With mine development approvals secured for the project at the end of July, Danakali plans to be in production within two years.
The project has a 1.1 billion tonne reserve which underpins an almost 200-year mine life.
Earlier this month, Danakali revealed it had selected highly experienced Aggreko to power the project under a buy own operate transfer contract.
Aggreko will supply, commission and maintain the 12.36MW thermal heavy fuel oil plant for five years. After the five-year period, the plant will be transferred to Colluli Mining Share Company.
The project also has a 10 year take or pay offtake agreement with EuroChem Trading GmbH.