Aim-listed potash development company Emmerson’s main priority at this time is obtaining environmental approval for the Khemisset innovative project, in Morocco
The company highlights that a scoping study released in February introduces a novel processing method, the Khemisset multimineral process, designed to reduce the project’s environmental impact.
This innovative processing technique can cut water consumption by 50% and eliminates the need for brine disposal, which not only enhances the project’s economic viability but also addresses significant concerns regarding water usage.
Morocco has experienced less reliable seasonal rains in recent years, leading to droughts and reduced water levels in reservoirs and aquifers.
Following a $2.5-million fundraising in April, Emmerson is sufficiently funded to continue progress at Khemisset while awaiting approval for its environmental and social impact assessment (ESIA).
The ESIA application was resubmitted to the Commission Régionale Unifiée d’Investissement in April, incorporating the latest optimizations for the processing plant.
“We hope we are now in the final stages of the approval process, which has taken much longer than initially anticipated and required considerable additional work and iterations,” says Chairperson James Kelly.
The Khemisset project is projected to operate for 19 years, drawing from a 537-million-tonne resource with a grading of 9.24% potassium oxide, and offers further exploration potential.
The updated financial estimates from the February scoping study indicate a net present value of $2.2 billion for the project, with an internal rate of return around 40%.
The new processing method will lower the capital cost to $525 million, down from $539 million, and increase annual earnings before interest, taxes, depreciation, and amortization to $440 million, up from the initial $258 million.
“In challenging financial markets with modest potash prices, it is crucial for new greenfield projects to stand out. Khemisset’s innovative, patent-pending processing method allows mixed potash ore types to be processed efficiently, producing multi-nutrient fertilizers as by-products.
“No other potash project globally can claim such efficiency in freshwater use,” Kelly notes.
CEO Graham Clarke adds that Khemisset is unique in producing fertilizers containing potash, phosphates, ammonia, as well as magnesium and iron from one processing plant.
He states that once environmental approval is secured, the company will complete the remaining studies and publish an updated bankable feasibility study, incorporating all optimizations and revised estimates from the original 2020 feasibility study.
