Royal HaskoningDHV was contracted by the client to assist with the technical due diligence for the full pit-to-port logistic chain within the scope of the Allana potash mining project in Ethiopia. The project was undertaken between 2013 and 2015 and comprised of a concession in north eastern Ethiopia with an area totalling 312 square kilometres. The mining area is located in the remote Danakil desert of northern Ethiopia close to the Eritrean border.
The logistic chain for the project comprised of the following:
- Solution well mining on site;
- Solar brine evaporation on site;
- Beneficiation plant on site;
- Road transport from the site to the new port of Tadjoura in Djibouti;
- Port development in Tadjoura.
A comprehensive due diligence report was prepared by Royal HaskoningDHV which facilitated the client’s decision to acquire the project. Our report included aspects as diverse as: technical methodology analysis, risk assessments, financial analysis and programming risk.
Our multi-disciplinary team was then retained by Allana to perform a logistics stress test for the Allana potash hauling operations, using specialist logistics software. The objective of the stress test was to identify the reliability and robustness of the logistics chain. To do so, we defined the required equipment stockyard requirements (for both port and mine) and number of trucks. We identified weak links within the chain; analysed the potential for optimisation of the chain, and assessed CAPEX, OPEX and cost per ton.