The Eritrean Ministry of Land, Water and Environment's department of environment has confirmed acceptance of the finalised project's plans after an extensive impact review process.
The Colluli project is located in a semi-desert agro-ecological zone, of which most of the land is barren and of little use to communities and wildlife, although the proposed site access road and pipeline corridor cross an important rangeland grazed extensively by livestock and wildlife.
Danakali said this had been given due consideration in the social and environmental impact assessment and management plans.
It added the SEMP was a vitally important part of the environmental, social and safety management system being developed by the Colluli Mining Share Company and provided the foundation for compliance.
Colluli is now fully permitted for development, with a mining agreement previously signed with the Eritrean Ministry of Energy and Mines and the requisite mining licences awarded in early 2017.
Danakali executive chairman Seamus Cornelius said Colluli could provide significant social and economic benefits, creating many permanent jobs for Eritrean nationals and catering for community interests.
"We look forward to continuing our relationship with the government and local communities of Eritrea and achieving long term economic, social and community benefits for the country and its people," he said.
Danakali's shares dropped 3.75% Wednesday to A77c (US57c).