Emmerson, the Moroccan focused potash development company has moved closer to production at its Khemisset Potash Project in northern Morocco. This is after the company completed an Environmental Baseline Study for the project .
The findings of the Baseline Study highlighted no fatal flaws to the future development of the Project as envisaged in the Scoping Study completed in November 2018.
The Scoping Study confirmed that Khemisset has the potential to be among the lowest capital cost, highest margin potash projects in the world with outstanding economics, including forecasted EBITDA margins in excess of 60% and a post-tax NPV10 of over US$1.1bn, based on industry expert price forecasts.
Hayden Locke, CEO of Emmerson, commented: “We are delighted with the successful completion of the Environmental Baseline Study. The results show there are no environmental or social red flags which could impact our planned accelerated development schedule. The completion of the Baseline Study is an important step forward and allows us to continue to rapidly advance the project while minimising the potential for adverse social and environmental impacts in the future.
“As Emmerson advances its planning for construction of the project, we are committed to complying with global guidelines such as the IFC Performance Standards, which are important for future financing discussions. We look forward to continuing to deliver on our many development objectives and timelines as the year progresses and move the Khemisset Project towards production.”
The Baseline Study was completed by Phénixa, who has extensive experience consulting on environmental matters for natural resources and industrial projects in Morocco. Oversight was provided by international consultants OTEBA who has global experience overseeing environmental and social studies which are compliant with International Finance Corporation (“IFC”) standards and Equator Principles.
The Baseline Study assessed the potential impacts of the project on various aspects within the project area including:
• Land uses, social settings, and habitat types;
• Soil types, flora, and fauna;
• Climate, topography and elevation;
• Surface water, and ground water; and
• Archaeology, anthropology, and cultural heritage
The study reported no areas of concern which would significantly alter Emmerson’s planned scale, location, cost, or profitability of the project. Planning is underway for the commencement of full ESIA, including ongoing baseline studies, which will form the core component of the application for the Mining Licence for Khemisset.