Danakali Ltd’s Agreement with EuroChem for up to 100% of Colluli Module I SOP Production


Norton Rose Fulbright has advised Danakali Ltd and its subsidiary, Colluli Mining Share Corporation (CMSC), on a bankable binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem) in relation to up to 100 per cent of the Module 1 Sulphate of Potash production from CMSC’s Colluli Potash Project, located in Eritrea.

Danakali Ltd and its subsidiary, Colluli Mining Share Corporation (CMSC), finalized a bankable binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem) in relation to up to 100 per cent of the Module 1 Sulphate of Potash production from CMSC’s Colluli Potash Project, located in Eritrea.

Norton Rose Fulbright acted as Danakali and CMSC’s legal adviser in relation to the agreement, supporting negotiations and associated legal drafting.

EuroChem will take, pay and distribute up to 100 per cent of CMSC’s available Module 1 SOP production, minus up to 13 per cent at CMSC’s option. The contract is for a 10-year term with an option to extend for a further three years. The agreement is innovatively structured to minimise the working capital load on CMSC.

The Norton Rose Fulbright team was led by Perth partner Jake Howard (Picture) with assistance from Brisbane partner, Keira Brennan, and Melbourne partner, Hazel Brasington.

Involved fees earner: Jake Howard – Norton Rose Fulbright; Keira Brennan – Norton Rose Fulbright; Hazel Brasington – Norton Rose Fulbright;

Law Firms: Norton Rose Fulbright;

Clients: Danakali Ltd;