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.

An in-depth scoping study on a new and innovative processing route at the project, released on February 1, will significantly reduce the project’s environmental impact and enhance its economic returns.

The scoping study sets out a novel proprietary processing method, the Khemisset Multi-Mineral Process (KMP), which involves the treatment of brine to remove magnesium and iron chlorides through the addition of phosphate and ammonia, allowing for the residual brine to be recycled in the plant.

The KMP offers environmental benefits by eliminating the need for deep well injection and reducing water consumption by about 50%.

In addition, the processing method creates two new slow-release fertiliser products, struvite and vivianite, while increasing the recovery rate of MoP from 85% to about 91%.

Struvite and vivianite command a price premium as multinutrient, slow-release fertiliser products, which reduce phosphate runoff, and allow for less frequent application by farmers, Emmerson has stated.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The addition of the KMP has increased the post-tax net present value (NPV) by 120%, to $2.2-billion, and the internal rate of return (IRR) to 40%. Without the KMP, the NPV would be $1-billion and the IRR 26%.

Capital Expenditure
When incorporating the KMP, capital expenditure is estimated to be $525-million, slightly down from $539-million for the original design.

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

Latest Developments
Emmerson CFO Jim Wynn resigned on September 27 to pursue an opportunity elsewhere.

Finding a successor will start once the approvals for the updated environmental- and social-impact assessment (ESIA) for the project have been received.

The Commission Ministérielle de Pilotage requested an update to the ESIA to incorporate KMP optimisations in March this year. These changes include a significant reduction in water consumption and the elimination of waste brine disposal, which positively impact on the project’s economics. The updated ESIA was resubmitted in April.

The ESIA incorporates optimisations from the KMP. The company is awaiting the final review by the Commission Régionale Unifiée de l'Investissement (CRUI).

Emmerson is conducting a re-evaluation of the Joint Ore Reserves Committee- (Jorc-) resource at Khemisset, taking into account the KMP’s impact. The re-evaluation is expected to be completed by the fourth quarter and reflect the improved potash recovery and monetisation of previously discarded micronutrients. The revised mine sequencing will potentially increase profitability by focusing on areas high in magnesium and iron.

The company has also reported the successful completion of second crop trials.

The agronomic trials have focused on evaluating KMP products for providing phosphates for lettuces. While final results are pending, visual indicators suggest KMP products perform comparably to traditional phosphate sources and better than controls with no phosphate, the company has noted.

The trials aim to confirm that KMP products, which offer multinutrient and slow-release advantages, could reduce phosphate use and mitigate environmental impacts such as phosphate runoff.

Additionally, the KMP process changes will enable Emmerson to produce industrial-grade salt, which commands a higher price than de-icing salt and provides an additional revenue stream. Value-adding optimisations are also being considered and may be implemented as modular enhancements later in the project.

Emmerson’s primary focus remains on obtaining environmental approval for the Khemisset project and advancing technical studies, including the updated resource estimate in the fourth quarter.

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.