Potash development company Emmerson has signed two memoranda of understanding (MoUs) for the supply of potash and salt to be produced at its Khemisset mine, in Morocco.
Under the terms of its MoU with Swiss-based agritrader Keytrade, Emmerson will supply 245 000 t/y of muriate of potash (MoP) for ten years.
Under the terms of the second MoU, it will supply at least 245 000 t/y of MoP and at least 500 000 t/y of sodium chloride to commodity trading company Hexagon for ten years.
"I am delighted to present our first offtake MoUs to the market as we continue our process of advancing towards construction readiness at Khemisset. These MoUs are an important milestone in this process and will account for more than 65% of MoP production and 50% of salt production.
"Underpinning a significant proportion of future potash and salt sales on a take-or-pay basis is a strong endorsement for the project, derisking the development for debt and other financiers. They are also a clear signal of the critical importance of potash in the context of international food security, and we look forward to advancing further negotiations as we continue to lay the foundations for establishing Africa's first commercial potash mine," comments Emmerson CEO Graham Clarke.