Danakali ESG Framework

DANAKALI SOP is the premium, high margin potash type SOP is an environmentally-friendly, chloride-free source of Potassium and Sulphur SOP prices are typically 2-3x MOP prices SOP is used to enhance yields for high value crops such as fruits, vegetables, coffee, tea and nuts Demand driven by rapidly growing middle class in developing nations and changing dietary preferences globally and global population growth Limited primary production available Secondary production (typically the high cost, energy intensive and environmentally unfriendly Mannheim Process1) accounts for over 50% of supply MOP KCI ~67Mtpa US$200-300/t* Low value, chloride tolerant *Price range between Jan. 2014 - Jan. 2020 SOPK2SO4 ~7Mtpa US$450-600/t* High value, chloride sensitive or intolerant Source: CRU, DNK announcement 29-Jan-18 1 The Mannheim Process is the conversion of MOP to SOP through the addition of heat and sulfuric acid, hydrochloric acid is a by-product Price reporting agency CRU "global SOP prices to increase to 2023 as the market balance tightens with limited new capacity to enter production" 2 Includes MOP converted to SOP via Mannheim Process

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