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
Emmerson started this year with a great deal of purpose, making progress on its feasibility study and having a clear plan for the future to further derisk the Khemisset project.

Following a rigorous site selection trade-off study, the company has selected two sites for mining, a preferred site and a secondary site, both of which have provided (a) great results for the project in terms of access to local infrastructure, lower decline costs and optimum locations for the process plant.

The company has determined? that $2-million will be required to connect its preferred plant site to local road infrastructure, which will be used to transport the potash to the nearest port for export.

Emmerson started work on an environmental- and social-impact assessment (ESIA) in January, which, along with its application for a mining permit for the project, will be done during the second half of the year.

As part of the ESIA, Emmerson has partnered with the Rabat Scientific Institute, in Morocco, to provide scholarships for students to study animal species in the area around the Khemisset site.

This will not only provide key data for the ESIA but also demonstrate the company’s high standard of corporate and social responsibility.

Meanwhile, the company is continuing its discussions with several potential partners for the future development of the project. The discussions cover potential financing options and potential technical partnerships, including with engineering, procurement and construction contractors.

In light of Covid-19 protection measures in the country, Emmerson has said that it is fortunate in that its staff can continue the current work programme from home.

The company has a healthy cash position of £1.6-million to progress the project’s studies and permitting process at least until late 2021.

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.