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 year 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 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 is still awaiting a session of the country’s Commission Ministérielle de Pilotage (Ministerial Committee) to obtain environmental- and social-impact assessment (ESIA) approval for the project, the company outlined in an update on activities during the fourth quarter of 2023.

The committee was unable to meet during the second half of 2023, owing to several matters taking priority at governmental level, including the coordination of relief efforts related to the earthquake in September 2023, which Emmerson understands.

The company continues to lobby to ensure this meeting takes place as soon as possible and that its application will be considered favourably while respecting due protocols and procedures.

In December 2023, the company announced the extension of the appointment of a syndicate of international and Moroccan banks as initial mandated lead arrangers to coordinate and fund dual-tranche debt financing facilities for the development of the project for a further 12 months.

The debt facility amounts to $310-million. The extension of the mandates demonstrates the ongoing support for Khemisset by the syndicate, the company has stated.

Meanwhile, only the final documents are expected for the basic engineering workstreams.

No further exploration or engineering work in respect of the basic design is being undertaken, pending the ESIA approval.

Emmerson has continued to examine process design and optimisations with a specific focus on improving the project’s environmental footprint, which, it has said, also offers considerable economic upside.

Details of these enhancements are being finalised and will be announced in due course.

“Once we have the ESIA approval, we will be in a position to move forward quickly with fundraising and technical work,” CE Graham Clarke has said.

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.