Danakali, an Australian company that has been developing the Colluli potash project in Eritrea, was recently granted permission by the Eritrean Ministry of Energy and Mines to commence commercial production at Colluli. Colluli boasts a 1.1Bt Ore Reserve and almost 200-year mine life, shallow mineralisation allowing low-cost open-cut mining, simple, proven, low-cost processing, favourable logistics, expansion, diversification and multi-commodity potential. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. education, gender equality, clean water and sanitation, sustainable economic Colluli is located in the Danakil Depression on the Eritrean side of the Eritrea-Ethiopia border, a barren desert area ideal for large mine operations (Fig. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). Image courtesy of Danakali. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. Abu Dhabi has established a growing reputation as a source of innovation due to forward-thinking projects across sectors including energy, infrastructure, sport, culture and tourism. The UN sanction was lifted by the UN in November 2018 under Resolution 2444, by the EU in the following month, and by the U.S. in May 2019. In the initial phase of operation, Wage said, Colluli would The FEED economic studies envisage the production of 472 Ktpa in module I for development capital of US$302 million and another 472 Ktpa in module II beginning year 6 for additional investment of US$202 million. The asset has the potential to produce other fertilizer The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. It assesses a wide range of econometric data and includes findings . Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. RA, listed . Located in the Horn of Africa, prolonged periods of conflict and severe drought have had a catastrophic impact on the Eritrean economy and the country is one of the worlds poorest, with income per head estimated at $678 in 2022 (up from $501 in 2010). Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. Annual output The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast The Perth-based miner noted that despite covid-19 restrictions,. And how is that relevant here, the government has not changed since Dankalis involvement so it was certainly a government worth doing business with at some time. What are my chances of getting my money back? Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. Infrastructure to be developed and upgraded outside the Colluli mining license area includes sea water intake and treatment at Anfile Bay; pipeline and access corridor of 87km between Bay area and the Colluli process plant and the Colluli site road of 57km connecting Colluli to Marsa Fatuma. These include: No poverty, zero hunger, quality The proximity to the coast and the established port infrastructure in the Port of Massawa gives Colluli unrivalled access to global export markets, and it also decreases logistics costs from the mine gate onto the ship. The Colluli Potash Project (Project, Colluli) is 100% owned by Colluli Mining Share Company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining rporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. SOP in developing regions where the highest rates of population growth are expected, from. Phase one, involving an estimated capital investment of 220m ($298m), is expected to produce 472,000 tonnes per annum (tpa) of high-quality SOP, while in phase two, the mine is expected to produce up to 944,000tpa of SOP from year six of the project with an additional capital investment of 148m ($202m). Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. Colluli has been largely de-risked in terms of. Fig. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) fertiliser project under development by the Colluli Mining Share Company, a 50-50 joint venture partnership between the Australian start-up Danakali and the Eritrean National Mining Corporation. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Eritrea was, until 2018, on the UNs sanctions list. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. The United Nations Development Programme (UNDP) has indicated Colluli has the potential to significantly boost the Eritrean economy and have a substantial positive impact on the Sustainable Development Agenda of Eritrea. Shareholders are slated to . The project has the world's. 6. The company expects to start full commercial production in mid-December 2022. body {top:0 !important;} it is promising future.for our country and people .Thank God. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. I wrote this article myself, and it expresses my own opinions. On the financial front, a key step was taken last month when Danakali, which has a 50-50 joint venture covering Colluli with the government of Eritrea, signed a $200 million funding mandate. The Colluli potash project also involves evaporation ponds, a run-of-mine (ROM) pad, a sewage treatment plant, fuel storage tanks, accommodation camp, workshops, warehouses, and a main administrative building. 6. Profit was boosted by higher metal grades and prices. The deposit is located in the Danakil depression region of Eritrea, about 75km away from the Red Sea coast and 177km south-east of Asmara, the capital city (with a population of 960,000 people). The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. It is generally used in combination with the other two macro-nutrients, nitrogen and phosphorus, to produce a range of fertilisers, the type used being dependent on the soil to which it will be applied. There are many sources of potassium, including. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Status: Design. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. x][sF~w""s)d;9>u^v0@ROcTE&Agdjyr8_N>}\O_,g|yrqKbzlwGouQB b-*dkGO?-M^e1?!;=^RxGN{t2k JSUUSx=ce :jc`s>h. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . The location of the Colluli potash deposit, from this source. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. There is also potential for kieserite 11. Morgan Leighton. In some cases, depending on the ambient conditions, this process can take over two years. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. The saleable SOP product will be trucked via road for sipping to the Massawa port which is located approximately 230km north-west of the project site. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. growth and decent work, industry, innovation and infrastructure, reduced It also has access to solar, wind and geothermal energy systems - the East African rift. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. Danakali reports that the Colluli Mining Share Company (CMSC) has appointed RA International Group as its preferred contractor for the supply of accommodation, support services and other infrastructure buildings in support of the Colluli sulphate of potash project development, in Eritrea. Last Updated on: 01 December 2022. (MOP) and gypsum, along with rock salt. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. Muriate of potash, i.e., MOP (KCl; 0-0-60), which is used for wheat, corn, and other chloride-tolerant crops; Sulfate of potash or SOP (K2SO4; 0-0-50-18S), which also supplies both potassium and sulfur for high yields and quality; Potassium-magnesium sulfate, i.e., SOP-M (K2SO4-2MgSO4; 0-0-22-22S-11Mg) used as specialty fertilizer; Potassium thiosulfate (K2S2O3; 0-0-25-17S); and, Potassium nitrate (KNO3; 13-0-44) used for chloride sensitive crops that require additional nitrogen (see. We use them to give you the best experience. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. with the move towards diplomatic relations between the once feuding countries It describes Eritrea as "a dictatorship in which the media has no rights". With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. Eritrea one of the worlds most repressive and secretive states, known as the North Korea of Africa is poised to disrupt the global supply chain of fertiliser. 3). The document estimated that Colluli would contribute 3% of In 2023, Botswana expects diamond output to decline by 1%. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. 3. I have no business relationship with any company whose stock is mentioned in this article. 2023 Glacier Media Group, All Rights Reserved, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, Quest for worlds biggest diamonds gives De Beers a headache, Mali forecasts 3.5% decline in industrial gold output in 2023, Canada injects $75 million into BHPs Jansen potash mine, Russia raises fertilizer export quota by 500,000 tonnes, World to face potash price crunchas Brazil Potash propels Autazes project toward production, Europes largest rare earths deposit found in Sweden. Subject to conditions, the deal with Chinese company Sichuan Road and Bridge Group is expected to be finalized between March and May next year, leaving Danakali with $121 million cash, of which 90% will be distributed back to shareholders. The stock chart of Danakali, modified from this source. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. Colluli is located in the Danakil Depression . The project is on the Eritrean side of the border, giving Colluli a significant advantage relative to the other potash development projects in the Danakil Depression, which need to ship from the Tadjoura Port in Djibouti over 790km by road from the closest project on the Ethiopian side of the border. Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. I based my assertion of Eritrea being ONE of the most oppressive regimes on a series of reports by human rights advocates such as Human Rights Watch (https://www.hrw.org/world-report/2021/country-chapters/eritrea) as well as sites such as D+C (https://www.dandc.eu/en/article/how-government-eritrea-became-one-worlds-most-repressive-regimes). All primary production of potassium sulphate from kainitite worldwide commence with low potassium content brines, which require substantial solar evaporation to generate a harvest salt for subsequent processing. keyValue[2].split('/')[2] : null;} The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Afwerki has become close to Abiy and is a sworn enemy of the Tigray Peoples Liberation Front, which ruled Ethiopia when the two countries fought a border war. The Colluli potash project is considered one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. Since then, potash price has fallen from the neighborhood of US$600/t MOP to as low as USS$200/t MOP by 2017, and has since been fluctuating between US$200/t and US$270/t. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. 3). US Level 1 ADR . 4). View the original article here. I have no business relationship with any company whose stock is mentioned in this article. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. The operating environment weighed heavily on Danakalis decision, as Eritrea is ruled by one of the worldsmost oppressive regimes and was until 2018 on the UNs sanctions list. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. Development Goals (SDGs). Artists impression of the plant at the Colluli project. In late 2019, the China Shanghai Corporation for Foreign Economic and Technological Cooperation began constructing part of the 500km road connecting Eritreas Massawa and Assab harbours (both have special economic zones). endobj The front-end engineering design (FEED), expected to be It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. Reminders. 9. February 25, 2022. Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road southeast of the port of Massawa, which is Eritreas key import/export facility. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Net to Danakali's 50% interest, Module I is projected to generate NPV-10 of 242 million, on average delivering an undiscounted FCF of US$43 million per year, with a post-finance IRR of 29.7%; module I&II is projected to generate NPV-10 of 439 million, on average delivering an undiscounted FCF of US$85 million per year, with a post-finance IRR of 31.3% (Table 1). In spite of the projected long-term growth of potash demand, the building of new production capacity has been lagging in the past few years, thanks to low potash prices. Sadly, Eritrea looks set to remain a failed state as long as he is in office. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} The shortfall of projected and actual global potash capacity, from this source. Disclosure: Besides myself, TNRH is fortunate enough to have multiple other contributing authors who post articles for and share their views with our thriving community. finished in June, will take the company a step closer to the construction phase The FEED economic estimates, from the same source as Fig. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. The JORC-2012 compliant mineral resource estimate, from this source. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. Danakali, currently undervalued and standing for a massive re-rating upon the first production, should be considered by risk-tolerant investors with a long time horizon. Finance > M-a. Thank you for your comment. 4. and then onto production in 2022, Danakali said. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: The owner and developer of the project is the Colluli Mining Share Company (CMSC), a 50:50 joint-venture between Danakali and the Eritrean National Mining Company (ENAMCO). Unlike North Korea, China or Iran, social media is mostly unregulated, but the biggest problem is access to the internet, which is unreliable and expensive. It also said that all vendor and contractor packages have now been received. This is a report that was prepared by independent consultants and initiated and funded by the United Nations Development Programme (UNDP) on the potential contributions of Colluli to Eritrea's Sustainable Development Goals has been released. The border with Sudan was closed until early 2019 because relations were so bad. Under the current FEED study for Module 1 and 2, Danakali will be one of the lowest cost SOP producers and with the development of the loading facility at Anfile Bay costs will decrease further as transportation costs are reduced. Open-cut mining is a proven mining method for salts, and its safer and more cost-effective than underground mining which allows for better overall resource recovery. Invest in t. second phase of development, as the project has a possible 200-year plus 7. Our 3 Top Picks. Potash is the common term for fertiliser forms of the element potassium (K). It is estimated to have about 80,000 archaeological sites. Unlike other potash producing basins of the world, the Danakil region contains a variety of potassium-bearing salts, enabling the opportunity to generate a range of potash fertilizers. ColluliMining Share company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining Corporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. Agnico Eagle's EPS beat expectations; guidance maintained. I am not receiving compensation for it (other than from Seeking Alpha). Fig. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. To lower infrastructure uncertainties, in August and October 2020, respectively, Danakali appointed RA International Group PLC as the preferred contractor for the supply of accommodation, support services, and other infrastructure buildings, and Aggreko (AGK.LSE) as its preferred power supply contractor for its 12MW HFO power plant at Colluli under a five-year BOOT contract, removing a major infrastructure uncertainty. The government will benefit from the longer-term as being forecasted back in 2015 has been removed from the supply side (Fig. As a natural resources industry expert with years of successful investing experience, I conduct in-depth research to generate alpha-rich, low-risk ideas for the member of The Natural Resources Hub (TNRH). Potash demand is largely driven by the need to increase crop production and by improved potash application rates, particularly in developing countries such as Asia, Africa, and Latin America, where potash has been historically under-applied relative to scientifically-recommended levels (Fig. Colluli has significant multi-commodity potential presenting major additional value upside. These authors includeSilver Coast Research, , among others. Mineral & Phosphate Mining in the US industry outlook (2022-2027) poll Average industry growth 2022-2027: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. 8. One of the essential benefits of having the salts in solid form is that it takes between 2-3 weeks to mine, process and transport our SOP to Massawa Port. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. The Colluli potash project is expected to commence production in 2022. 5). 2 0 obj (2) live portfolios for both capital appreciation and income generation. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. There are 70 Subscribers monitoring this project. Colluli, furthermore, boasts the shallowest evaporite mineralisation globally and consequently has significant mining, logistics and, in turn, capital and operating cost benefits over other potash development projects in the Danakil Depression and elsewhere. Click HERE for a free trial now. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. Some people have been in national conscription for more than 20 years. The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. Apart from SOP, the salt composition at the deposit also allows for the production of other potash products including sulphate of potash-magnesia (SOP-M) and muriate of potash (MOP). The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the module I SOP production over a 10+3 year term from the project commissioning. stream Our people is poor continue!!!! <> DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at (. The deposit stretches across the border into Ethiopia. .goog-te-menu-value:hover {text-decoration:none !important;} It has been a Unesco World Heritage Site since 2017. The mineralization in the Colluli deposit starts at just 16m, making it the shallowest known potash deposit in the world, and thus amenable to low-cost, open-cut mining. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). The Danakil Depression that commences in Eritrea and extends up to 300km into Ethiopia, is believed to contain more than six billion tonnes of potassium bearing salts. At a forward P/FCF multiple of 2.6X for Module I (2022-) and 1.3X once Module II comes on-stream in 2028, Danakali appears to be undervalued. 03 October 2022. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? The project has a 200-year lifecycle and is expected to start operating in 2022. As the commodity supercycle unfolds, you are invited to join The Natural Resources Hub today to take advantage of a slew of generational opportunities alongside Laurentian Research. Installation of an export terminal at Anfile Bay would decrease the length of the land transport route from 230 to only 87 km, thus further lowering the logistics costs required to satisfy the multi-commodity trade in and out of Eritrea. Table 1. Soraya Narfeldt, CEO of RA International, said: We are delighted to have been chosen as the preferred contractor to work with Danakali and its partners on this project which we see as globally significant. A pre-feasibility study was completed in February 2015, followed by the completion of a definitive feasibility study in November 2015, while the mining licence was granted in February 2017. Disclosure: I am/we are long SBMSF, CMP. To open fire on your own disabled [people] is pretty appalling.". The Colluli process is expected to generate a product with a purity of 94.5%. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. It also has access to solar, wind and geothermal energy systems the East African rift. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. Previously, in London, he was editor of Investment Adviser and news editor of Financial Adviser, both of which belong to the Financial Times Group, Namibian Investment Promotion and Development Board, Dubais new family office rules can drive economic growth for the UAE, Opinion: New Brexit deal can only be a good thing for Northern Ireland, African FDI into mines on the rise as continent steps up its role in energy transition, How proptech is driving sustainability: Lessons from Stockholm, How Montrals unique agtech community is boosting local food production, EU to launch quest for raw materials critical for cleantech, Finding a cure: How cell and gene therapies could revolutionise medicine, China Shanghai Corporation for Foreign Economic and Technological Cooperation, Norway PESTLE Insights - A Macroeconomic Outlook Report, PESTLE Insights: Macroeconomic Outlook Report - Norway. It thus follows we should keep an eye on emerging potash producers. The accommodation camp, meanwhile, has been designed to accommodate 600 personnel during the production phase with the flexibility to accommodate 1,115 during the construction phase. Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), has been called a game-changer for Eritreas economy, as it is expected to become one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. Asmara is a beautiful city and awash in colonial Italian architectural gems. the countrys GDP by 2021 and 50% of the nations exports by 2030, while Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. region, chief executive Niels Wagetold MINING.COM last year. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. Fig. The proposed mine is located within the Danakil Depression, part of the Great Rift Valley on the Eritrea - Ethiopia border, with export facilities on the Eritrean Red Sea coastline. The development of the Colluli potash projects coincides The project will be developed in multi-modules, with Module I serving as a platform for future growth. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. The country with an estimated $2.48bn economy and 3.6 million inhabitants has been ruled with an iron fist by its dictator President Isaias Afwerki, now aged 75 since he led it to independence from Ethiopia in 1993. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. It is strategically important as it has access to the Red Sea, the Suez Canal and to Europe, as well as to the waters of the Persian Gulf and beyond to the Indian Ocean.
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