Name of the Project
Khemisset potash project.

Location
Northern Morocco.

Project Owner/s
Potash developer Emmerson PLC.

Project Description
A feasibility study completed in June 2020 confirmed Khemisset as a world-class, low capital cost, high-margin potash mine.

The project will have a yearly run-of-mine extraction rate of six-million tonnes a year.

At full production, Khemisset could produce 810 000 t/y of muriate of potash (MoP) and one-million tonnes a year of de-icing salt over an initial 19-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.4-billion and an internal rate of return of 38.5%, with a payback of 2.6 years.

Capital Expenditure
Khemisset has demonstrated an incredibly low preproduction capital cost of $387-million.

Planned Start/End Date
The project can be built over two years.

Latest Developments
Emmerson undertook considerable work in the fourth quarter of 2022 to progress discussions with regard to the environmental approval of the Khemisset project, CEO Graham Clarke said in a corporate and operational activities update for the period, published on January 9.

At the end of the third quarter, the company announced that it had renewed its strategic investment for a further 12 months and had strengthened its balance sheet with the raising of a further $6.1-million, which will fund its planned activities in 2023 ahead of construction.

Emmerson’s priority is to secure the necessary environmental approvals from the Moroccan authorities. As Khemisset will be the first potash mine in Morocco, the authorities have sought to ensure all aspects of the project comply with the highest standards.

Over the course of 2022, Emmerson has been able to address several of the wider issues relating to the project, in particular its potential impact on local and neighbouring communities and businesses. Discussions have progressed more specifically onto matters concerning the project's water management.

Foremost among these is the confirmation of the capacity to use recycled water from the Khemisset wastewater treatment plant, instead of drawing fresh water direct from the Ouljet Essoltane dam. This revision, developed in conjunction with Reminex, is said to considerably mitigate risks around water supply levels during dry periods.

Emmerson has also decided that a dry tailings system will be employed at Khemisset to reduce water consumption and eliminate any risk of saline fluid outflow in the event of an extreme rainfall event.

The finer technical details, and other specific areas, continue to be reviewed by the environmental and water agencies.

Meanwhile, work in other areas has continued. The company’s technical workstreams, which include key elements relevant to water management, such as sourcing water and tailings facilities, are nearing completion, and the company has also signed memorandums of understanding for about two-thirds of its potash production on a take-or-pay basis.

Discussions with financiers continue and Clarke contends that environmental approvals will unlock progress, particularly on the equity side.

Key Contracts, Suppliers and Consultants
Golder Associates (feasibility study), including Moroccan Salts (consultant and resource geologists); Global Potash Solutions and Barr Associates (processing design); Barr Associates (engineering package for the mineral processing facility); Reminex (balance of the basic engineering package); Reminex and BBA (due diligence on design assurance, operational readiness and risk management); and DeltaBEC (project infrastructure).

Contact Details for Project Information
Emmerson PLC, tel +44 207 236 1177.