Emmerson’s finalised decline design confirms low capex mine access at Khemisset
Morocco-focused potash development company Emmerson has finalised the feasibility study components for the mine access design and costing for its Khemisset potash project, in northern Morocco.
The project is advantaged by industry leading capital costs and bottom quartile all-in delivered cost to customer, yielding outstanding economic metrics, including average yearly life-of-mine earnings before interest, taxes, depreciation and amortisation (Ebitda) of $236-million.
The studies estimate a direct capital cost for the mine access component of about $34.1-million, including a 21.7% contingency. This is a slight reduction on the scoping study estimate of $34.7-million.
This cost forecast places Khemisset in the lowest 10% for mine access costs for potash developments globally.
The design and estimate were completed by independent engineering group Golder Associates, according to AusIMM guidelines for capital cost estimates.
Mine access design and cost estimates are the final deliverable prior to the completion of the full feasibility study, which remains on track for completion in the first half of this year despite challenges presented by the ongoing Covid-19 outbreak.
"One of the most prominent barriers to entry in the potash market is the overall capital cost to develop the mine. Mine access, typically via a shaft, is one of the single largest determinants of overall capital cost of these projects, and can be hundreds of millions, and in many cases billions, of dollars.
"We are fortunate to have a project where this major capital component can be achieved for only $34.1-million, a cost saving of over 90% when compared to most projects globally. This reduction in capital cost has numerous knock-on benefits including allowing a smaller project to be developed and providing a more readily financeable project regardless of potash prices,” comments Emmerson CEO Hayden Locke.
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