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 year 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 and one-million tonnes a year of de-icing salt over an initial 19-year mine life.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.4-billion and an internal rate of return of 38.5%, with a payback of 2.6 years.
Capital Expenditure
Khemisset has demonstrated an incredibly low preproduction capital cost of $387-million.
Planned Start/End Date
The project can be built over two years.
Latest Developments
Emmerson has made considerable operational, corporate and commercial progress towards delivering a “shovel-ready” project by the end of the year.
The company continues to advance negotiations on debt and equity financing with a range of international and Moroccan institutions.
With the prevailing war in Ukraine having a considerable impact on fertiliser and food supply chains and prices, the importance of food security has never been clearer, and potash has a key role to play, Emmerson chairperson James Kelly has said.
About 40% of global potash production in 2021 came from Russia and Beralus, and these suppliers are likely to be constrained by sanctions of various natures for the foreseeable future.
Against this backdrop, the world needs new sources of potash.
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.