A socioeconomic study into the Khemisset potash project, in Morocco, has provided measurable and verifiable confirmation of the significant benefits that the project will deliver at a local, regional and national level, says project owner Emmerson.
The study indicates that 2 385 direct and indirect jobs will be created during the construction phase of the project.
Once fully operational, 1 500 jobs will be created, with 760 being direct employees.
The company plans for those living within the surrounding communities to take up about 90% of the available jobs.
The total investment over the life of the project is estimated to be $2.5-billion. Emmerson will adopt a procurement strategy to provide preferential treatment to local, regional and in-country providers to maximise the benefits to Morocco, it says.
The study posits that the economic impact of the project will increase the local gross domestic product per capita by an estimated 40%, it adds.
The additional tax contributions resulting from the project represent an estimated 176% of tax revenues generated locally, 5.1% regionally and almost 1% nationally.
The study was carried out by Professor in Economics Dr Sallem Koubida.
"We are delighted with the outputs of the study, which demonstrate that the local, regional and national benefits that the project will bring are significant.
"Our company values are summarised by the phrase 'doing the right things in the right way' so it is an important part of the company's approach that the development of the Khemisset project has a positive impact on the local area and has a national significance which we have now demonstrated will be the case,” says Emmerson CEO Graham Clarke.
The socioeconomic baseline settings were analysed and applied to the calculated potential monetary and nonmonetary impacts using a multidimensional framework.
This process has methodically proven the potential for the project to be a development catalyst for the province of Khemisset in particular and Morocco in general, says Emmerson.
The study has proved that Khemisset combines the appropriate attributes for sustainable development, namely its location, outstanding economic metrics, corporate policies and standards, and government support, the company acclaims.
Khemisset will have a significant positive impact on the Moroccan economy, the company believes.
Total project investment is projected to be $2.5-billion over the life-of-mine.
The project will produce more than 700 000 t/y of saleable K60 muriate of potash (MoP) and one-million tonnes a year of de-icing salt.
The projected mine life is 19 years, but there is potential to extend this timeframe based on the mineral resources already in place.
Products generated by Khemisset will likely be exported to markets in the US, Europe and Brazil.
The revenue from the export of MoP and de-icing salt is estimated to contribute an additional 8% to Morocco's mineral export revenue and 110% to non-phosphates export revenue. It is also expected to have a significant positive effect on Morocco's current account deficit.
Capital investment financed from overseas and reinvested profit will also contribute to foreign direct investment to Morocco.
"Khemisset will not only be the first potash project in Morocco, but the first in Africa. The economic impacts of the project will be profound with significant benefits being felt at the local, regional and national level," says Emmerson.