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 has appointed a syndicate of international and Moroccan banks as initial mandated lead arrangers (MLAs) to coordinate and fund dual-tranche debt financing facilities for the development of the company's Khemisset potash project.

The four MLAs selected are ING Bank, Banque Centrale Populaire, Bank of Africa (Groupe BMCE) and an unnamed European bank. ING Bank is mandated to act as an export credit agency (ECA) coordinator and documentation bank.

Based on current discussions, the $310-million dual-tranche project financing will be split between an ECA-covered tranche of $230-million, led by UK Export Finance, and a dual currency (dollar and Moroccan Dirham) commercial tranche of $80-million.

“The appointment of the MLAs represents an important milestone in the company’s progress towards establishing Africa's first commercial potash mine for nearly 50 years,” comments CEO Graham Clarke.

Sender International and Colosseum Development (Morocco) are advising Emmerson on the debt financing for the project, working alongside Tamesis Partners as the company’s financial adviser for the financing of the project.

Emmerson has also appointed Pillsbury Winthrop Shaw Pittman as legal counsel in respect of the debt financing

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.