The company said it had no plans to raise capital with the listing, as it was already well funded.
The board made the decision after a comprehensive review of the potential benefits of a dual listing, noting that it was in line with its equity strategy.
It said this strategy included "mobilising significant UK, European and Middle East institutional interest, increasing share trading liquidity, and further raising the profile" of the 50%-owned Colluli potash project in Eritrea, a joint venture with the Eritrean National Mining Corp.
Analysis and insight from external parties indicated the LSE was "clearly the world's leading stock exchange for African-focused mining companies", Danakali said, adding a listing was appropriate due to liquidity, access to funds, profile benefits, costs and the company's growth potential.
Danakali managing director Paul Donaldson said the decision had taken place after careful consideration and interaction with global investment communities.
"Our ultimate aim is to drive value and optimal outcomes for our shareholders and stakeholders (including our JV partners, ENAMCO), through the successful development of Colluli," he said.
"The company sees the LSE dual listing as a key step to unlocking investor interest and equity funding required to achieve that goal."
Danakali will continue to be listed and trade on the Australian Securities Exchange, having made material share price gains since the release of the Colluli definitive feasibility study and project permitting wins.
It said offtake agreements for Colluli were well advanced and taking place at the same time as the funding work streams and the front-end engineering design, which was also nearing completion.