London-listed Emmerson is still awaiting the session of the Commission Ministérielle de Pilotage (Ministerial Committee) to obtain environmental approval for the Khemisset potash project that it is developing in Morocco, the company outlines in an update on activities during the fourth quarter of 2023.

The next step to obtaining approval for the environmental- and social-impact assessment (ESIA) for Khemisset remains a meeting of the Ministerial Committee, chaired by the Moroccan head of government.

This committee was unable to meet during the second half of last year, which Emmerson says it understands was owing to several matters taking priority at governmental level, including the coordination of relief efforts related to the earthquake in September 2023.

The company continues to lobby to ensure this meeting takes place as soon as possible, and that its application will be considered favourably, while at all times respecting due protocols and procedures, it adds.

“The company has repeatedly been assured that the meeting will take place soon, and that no further significant issues remain. However, the timing of the meeting and its outcomes are not within the company’s control. Any substantive updates on the approval process will be reported without delay,” Emmerson stresses.

In December 2023, the company announced the extension of the appointment of a syndicate of international and Moroccan banks as initial mandated lead arrangers to coordinate and fund dual-tranche debt financing facilities for the development of the project for a further 12 months until December 31 this year.

The debt facility under discussion amounts to $310-million.

The extension of the mandates demonstrates the ongoing support for Khemisset by the syndicate, Emmerson posits.

OTHER WORKSTREAMS

The basic engineering workstreams are now at the stage where only the final documents are expected.

No further exploration or engineering work in respect of the basic design is being undertaken pending the ESIA approval.

Separately, the company has continued to examine process design and optimisations with a specific focus on improving the project’s environmental footprint, which it says also offer considerable economic upside.

Details of these enhancements are being finalised and will be announced in due course.

“The final quarter of 2023 has been frustrating in that we continue to await the session of the Ministerial Committee, which is the next step towards the approval of our environmental permit.

“Discussions with various parties and advisers have continued to be positive, offering understanding for our frustration while explaining that governmental attention has been focused on various other matters. We believe the matter will be dealt with soon, based on feedback, but we are unable to provide any confirmed dates as the matter is in the hands of the government,” CE Graham Clarke says.

“While we have been continuing with our lobbying activities, we have limited our technical activities appropriately in order to preserve the company’s cash for as long as possible, although some important work has been undertaken to examine opportunities for further optimising and enhancing the project economically and more importantly, environmentally.

“Once we have the ESIA approval, we will be in a position to move forward quickly with fundraising and technical work,” he adds.