Emmerson has completed a preliminary design and cost estimates for the port upgrade necessary to allow the export of potash product at the Port of Mohammedia from the company's Khemisset potash project.
North Africa - The completed estimates have confirmed the potential for further significant capital cost savings for the project.
“The Khemisset project benefits from its proximity to a number of existing and planned port options when the project commences production," notes Hayden Locke, CEO of Emmerson.
"Access to existing port facilities, with minimal upgrades required, result in significant capital cost savings for the project.
"Morocco has invested heavily in all facets of infrastructure, including world-class ports, which are already resulting in significant benefits for Emmerson.
“Our initial discussions with authorities at the Port of Mohammedia have confirmed that there is expected to be capacity for the export of potash produced from Khemisset.
"Cost estimates include construction of a storage warehouse and loading facility for the handling of at least 800 000 tonnes of potash product per annum.
“The already completed design and cost estimates for the access to mineralisation, connection to logistics, and connection to electricity and gas supply and port facilities have highlighted the significant cost savings available to the Khemisset project, which are estimated to amount to over US$1.2 billion compared to Canadian peers.
"This announcement further enhances our belief that the scoping study for Khemisset will present a low capital cost, high margin proposition which should result in compelling economic metrics.
“The scoping study is well ahead of schedule and we are excited to release the results to the market as soon as it is finalised, which we expect to be imminently," Locke continues.
Comparison to peers
The scoping study port upgrade design and costing for the Khemisset project, completed by independent engineers Sigma, indicates that the capital cost requirement to upgrade port facilities should be far lower than the equivalent port upgrade capex costs for other potash projects globally.
Port upgrade overview
Sigma, which was appointed by the company to design and cost an initial facility at port, has completed basic design and cost estimates for the port upgrade.
Designs and estimates have been prepared in line with scoping study guidelines provided by the Australasian Institute of Mining and Metallurgy.
Basis of Port Upgrade
Emmerson has instructed Sigma to design a facility at port which will include:
- Facilities to unload potash from trucks at 500 t/h;
- A warehouse with capacity of 25 000 tonnes;
- Loading facilities from the warehouse onto ships at 1,000 t/h'
- Able to receive, unload and reload at least 800 000 tonnes per annum depending on
truck and ship frequency
Sigma has prepared preliminary design and costings based on these requirements.
The total budgeted capital cost required to upgrade the port facilities to allow export of product is US$7.5 million including a 30% contingency.
Cost estimation for the port upgrade has been conducted in line with scoping study levels of accuracy of approximately ±30-50%.