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 made significant progress on the project during 2022, and the first quarter of 2023 on preconstruction technical workstreams, to bring the Khemisset project into construction.

These workstreams include basic engineering and enhanced water management designs to gain an environmental permit.

For optimal water management, Emmerson has decided to source water from a wastewater treatment plant instead of reservoirs and to use the dry stack tailings storage method.

Moreover, the company has appointed a syndicate of leading international and Moroccan banks, including ING Bank, Banque Centrale Populaire and Bank of Africa, to serve as initial mandated lead arrangers.

The banks will coordinate and fund debt financing facilities for the development of Khemisset. Together with UK Export Finance, the companies will lead an Export Credit Agency tranche of $230-million.

CEO Graham Clarke has said the company’s efforts to finalise the remaining outstanding items with the relevant authorities in Morocco, before the granting of an environmental-impact assessment, continue to be rewarded with constructive meetings and encouragement from the various agencies involved. 

“I had hoped to be in a position to provide a definitive update on this process; however, the finer technical details of the water management proposals, in particular our use of recycled water from the Khemisset wastewater treatment plant, and our brines and dry tailings solutions, are awaiting final approvals from the environmental and water agencies.”

Clarke has added that it remains Emmerson’s priority to finalise this as quickly as possible in conjunction with the Moroccan authorities to move Khemisset into construction this year.

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.