CMSC appoints Aggreko as power supply contractor for Colluli plant

Dual-listed Danakali has announced that Colluli Mining Share Company (CMSC) has appointed Aggreko as its preferred power supply contractor for a 12 MW heavy fuel oil (HFO) power plant at the Colluli sulphate of potash project in Eritrea.

A 12.36 MW thermal HFO solution was chosen as the most effective option for Module 1.

Aggreko will provide the funding for the power solution, which Danakali says provides certainty over the delivery of this preferred solution.

Aggreko will also provide the full scope of support services for the supply, commissioning and maintenance of the power plant and then transfer it to CMSC.

The costs of the power solution provided by Aggreko over the five-year contract period is lower than those set out in the front-end engineering design study, Danakali points out. 

The agreement with Aggreko is subject to the conclusion of ongoing negotiations to optimise the scope of works, contract pricing and execution; and board approval of the final investment decision.

“We are very pleased to announce the appointment of Aggreko as our single power provider. With 55 years of experience in delivering high-quality, reliable service to a large number of projects we are confident they have the capabilities to provide our power needs for Colluli.

“At the early stages of the project development, the HFO solution will provide us with flexibility and reliability, and as confirmed by the Solar Energy Industries Association, Colluli will have a relatively small impact on the environment.

“Going forward, once project development is in more of a steady state, we will look to diversify our energy sources towards renewables available in the Danakil region, as per our commitment to sustainable and environment-friendly solutions,” says Danakali CEO Niels Wage.

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Rio2 Designates Process Plant Construction and Civil Contractors for the Fenix Gold Project

Rio2 Designates Process Plant Construction and Civil Contractors for the Fenix
Gold Project

VANCOUVER, British Columbia, Sept. 28, 2020 (GLOBE NEWSWIRE) -- Rio2 Limited
(“Rio2” or “the Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) today announces
that it has taken another key step towards the development of its Fenix Gold
Project (“the Project”) located in Chile by selecting the following lead

  * Process plant / site infrastructure construction contractor - HLC
    Ingeniería y Construcción (“HLC”)
  * Leach pad and civil design contractor - Anddes Asociados S.A.C.
  * Civil earthmoving and construction contractor - STRACON S.A. (“STRACON”) 

Together  with  Rio2,  the  companies   have  executed  an  early   contractor
involvement agreement (“ECI  Agreement”) for early  works associated with  the
process plant / site  infrastructure, leach pad and  project civil design  and
construction. Prior to  the signing of  this ECI Agreement,  the parties  have
been working exclusively over  the past few months  in close cooperation  with
Rio2 management  to  detail  all  project engineering  items  related  to  the
construction of the Fenix Gold  Mine. Detailed engineering activities for  the
construction of the  Fenix Gold Mine  are scheduled to  be completed in  early
November in preparation for project financing.

The scope of works for each contractor includes the following:

HLC - design and construction of  the primary crushing and stockpile  circuit,
ADR plant and  water facilities, lime  dosing and leach  pad pumping  circuit,
workshop, warehousing,  onsite offices  and  dining facilities,  onsite  power
generation and distribution.

ANDDES - engineering design for all civil earthworks, including access  roads,
water controls, infrastructure platforms, leach pad and ponds, waste dump  and
stockpiles. ANDDES will also provide site-based supervision of all civil works
including quality control and assurance.

STRACON - responsible for all earthmoving and associated activities, all  road
maintenance and construction, building  and infrastructure platforms, pad  and
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