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 has reached an impasse in the environmental- and social-impact assessment (ESIA) approval process.

Following the company’s unfavourable recommendation from the Commission Régionale Unifiée de l'Investissement (CRUI) regarding its ESIA application earlier this month, it has pursued possible remedies by engaging in discussions with its Moroccan advisers.

This resulted in Emmerson’s filing an appeal with the Wali of Rabat-Salé-Kénitra (CRI) region, which encompasses the province of Khemisset.

However, the Centre Régional d'Investissement of the region CRI responded that the CRUI did not have the authority to examine the ESIA submission again. The CRI also did not provide any indication of further avenues of appeal to the company.

This has effectively brought development of the project to a complete halt.

Emmerson is continuing to examine its options with respect to the approvals process and will update the market on its next steps in due course.

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.