Name of the Project
Khemisset potash project.

Location
Northern Morocco.

Project Owner/s
Emmerson PLC.

Project Description
A scoping study has confirmed Khemisset’s potential to be a low capital-cost and high-margin potash mine.

The study is based entirely on the Joint Ore Reserves Committee- (Jorc-) compliant inferred mineral resource estimate of 311.4-million tonnes at an average grade of 10.2% potassium oxide and delivers an initial mine life of 20 years.

Envisaged is the mine’s extracting about six-million tonnes of run-of-mine ore, with an average grade over the life-of-mine (LoM) of 9.35% potassium oxide.

Processing will be undertaken using a hot leaching and crystallisation process to extract and purify the potassium chloride in the ore into saleable grade K60 muriate of potash. Over the LoM, the process plant will deliver an average of about 800 000 t/y of K60 product for sale.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of $795-million and an internal rate of return of 29.8%, with a payback of 3.25 years.

Capital Expenditure
$405.9-million, including a $90.4-million contingency.

Planned Start/End Date
Not stated.

Latest Developments
Progress on finalising the feasibility study at Emmerson’s Khemisset potash project is continuing, with only minor, if any, delays to the delivery timetable expected.

Emmerson has said that it still expects to meet the previously provided timelines, subject to the continuing availability of its independent engineers.

The miner has confirmed that the Covid-19 outbreak and associated global mitigation actions are, so far, having a limited impact on the project. However, taking the current crisis into account, Emmerson has indicated that it has a “robust contingency plan” in place to reduce costs and focus on maintaining shareholder value, should the current market instability continue into the latter half of the year.

As a precautionary measure, staff in Morocco are predominantly working from home, with a skeleton workforce in place in the office or at site when necessary.

All nonessential activity, including travel, has been ceased or reduced to protect the miner’s employees and assets, and conserve capital.

Should the disruptions continue past that point, Emmerson has a mitigation strategy in place.

Key Contracts and Suppliers
Golder Associates (scoping study) and the Australasian Institute of Mining and Metallurgy (design and estimates) and Phénixa (ESIA).

Contact Details for Project Information
Emmerson PLC, tel +44 207 236 1177.