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 yearly 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 (MoP) and one-million tonnes a year of de-icing salt over an initial 19-year mine life.

An in-depth scoping study on a new and innovative processing route at the project, released on February 1, will significantly reduce the project’s environmental impact and enhance its economic returns.

The scoping study sets out a novel proprietary processing method, the Khemisset Multi-Mineral Process (KMP), which involves the treatment of brine to remove magnesium and iron chlorides through the addition of phosphate and ammonia, allowing for the residual brine to be recycled in the plant.

The KMP offers environmental benefits by eliminating the need for deep well injection and reducing water consumption by about 50%.

In addition, the processing method creates two new slow-release fertiliser products, struvite and vivianite, while increasing the recovery rate of MoP from 85% to about 91%.

Struvite and vivianite command a price premium as multinutrient, slow-release fertiliser products, which reduce phosphate runoff, and allow for less frequent application by farmers, Emmerson has stated.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The addition of the KMP has increased the post-tax net present value (NPV) by 120%, to $2.2-billion, and the internal rate of return (IRR) to 40%. Without the KMP, the NPV would be $1-billion and the IRR 26%.

Capital Expenditure
When incorporating the KMP, capital expenditure is estimated to be $525-million, slightly down from $539-million for the original design.

Planned Start/End Date
The project can be built over two years.

Latest Developments
Emmerson has entered into a subscription agreement with Global Sustainable Minerals (GSM), which will result in the company’s gaining a 20.3% shareholding in Emmerson.

GSM will have the right to appoint a representative to the Emmerson board of directors.

GSM is subscribing for 90.7-million Emmerson shares worth $2-million, at a placing price of 1.75p apiece, while another investor, Gold Quay Capital, is investing $175 000 almost eight-million shares.

Upon completion of the subscriptions, Gold Quay will own 2.64% of Emmerson’s issued share capital.

Both investors will receive a warrant to subscribe for new shares for each share subscribed, with an exercise price of 3p by December 31.

Emmerson will use these proceeds, as well as proceeds from another share offer on the REX platform, to advance studies in respect of its newly developed KMP technology, as well as for the environmental-impact assessment (EIA) process on the project.

Emmerson has had to submit a revised EIA to the country’s Commission Régionale Unifiée d'Investissement (CRUI) authority to address concerns previously raised by the CRUI, and detail other improvements.

The company has incorporated KMP into the revised EIA, which it believes will notably reduce the mine’s water consumption and eliminate brine disposal.

The CRUI is expected to review the revised EIA over the coming weeks, which incorporates a scoping study on the KMP processing route. Emmerson plans to advance the technology to feasibility study stage next.

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.