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.

Building on the feasibility study, Emmerson has completed a concept study to examine the potential to develop Khemisset using a four-phased approach to reduce upfront capital costs and execution risk, and plan additional expansion stages to ensure that its economic value is fully developed. The first phase focuses on a reduced muriate of potash (MoP) output stage, with the development of the declines and mine similar to the feasibility base case, but with a reduced capacity process plant, which will result in lower upfront capital expenditure (capex). MoP production is estimated at 350 000 t/y.

The second phase expands MoP production to the same level as in the feasibility study, with the addition of one-million tonnes a year of de-icing salt being produced as envisioned in the feasibility study. The additional capex required facilitates the expansion of the process plant capacity, along with the salt production plant and additional costs in mine development. An estimated 385 000 t /y of MoP is expected to be produced, as well as one-million tonnes a year of de-icing salt. Phase 3 entails the establishment of a sulphate of potash (SoP) production facility, expected to be located at the Port of Jorf Lasfar. The additional capex required is for the construction of the SoP facility and the expansion of the salt production plant. An estimated 240 000 t/y of SoP is expected to be produced and one-million tonnes a year of de-icing salt.

The final phase includes the development of the south-west area of the resource through two new declines, with the ore being transported to the existing process plant that is expanded to increase its capacity to more than one-million tonnes a year of MoP, a portion of which provides feed for the SoP facility. About 270 000 t/y of MoP is expected to be produced in this phase.

This phase will also result in the production of two-million tonnes a year of de-icing salt.

At full production, Khemisset could produce 800 000 t/y of MoP, 240 000 t/y of SoP and four-million tonnes a year of de-icing salt.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $2.37-billion.

Capital Expenditure
The capital cost of the project, including contingency, is estimated at $710-million.

Planned Start/End Date
Emmerson intends to start construction of the Khemisset project by the end of 2021.

Latest Developments
Emmerson has appointed Jim Wynn as CFO, effective immediately. Wynn is an experienced finance professional who has significant corporate experience, particularly in the resource sector.

Wynn is expected to play a pivotal role in putting debt financing in place for the Khemisset project, which the company aims to conclude during the second or third quarter of this year.

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.