Kasbah potash

Emmerson Plc, the Moroccan focused potash development company, has completed the full cost estimate for the capex required to ensure electricity and gas supply at its 100%-owned Khemisset Potash Project in Morocco.

Khemisset is a potentially world class potash development, with industry leading, low, capital cost to production and, as a result of its location, among the highest margins in the potash industry.

This work has been completed by independent consultant Golder Associates with the assistance of key local partners, as part of the forthcoming Feasibility Study, which is ahead of schedule, with delivery now expected in the early part of Q2 2020 instead of previously planned end of H1 2020. 

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These estimates have confirmed the potential for significant capital cost savings for the Project due to its proximity to excellent infrastructure.

Hayden Locke, CEO of Emmerson, comments:

“We continue to be pleased with the forward momentum we have achieved in developing the potentially world class Khemisset Potash Project. 

“The Project’s location, geology and access to outstanding infrastructure provide significant capital cost savings relative to our peers and enhance management’s strong belief in the potential for Khemisset to be a low capital cost potash mine development.

“Morocco has invested heavily in electrical generation and transmission capacity throughout the country and has developed an attractive renewable energy framework. 

“As a result, the Project is within close proximity to several Very High Voltage power lines with confirmed capacity for a mine the scale of Khemisset.

“Morocco’s forward-thinking legislation, to promote renewable energy development, provides additional benefits to the Project including tariff reductions, while reducing the overall carbon footprint of the mine.

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“Through continued discussions with our gas supply partner, it has reiterated its willingness to fund, design, build and maintain the gas storage infrastructure required for processing the potash ore, saving Khemisset considerable capital expenditure.

“The Feasibility Study continues to track well ahead of schedule, and we are confident that it will be delivered towards the front end of Q2 2020 rather than the end of 1H 2020 as previously advised.”

Highlights

  • Total budgeted cost for supply of electricity from the existing electrical infrastructure is approximately US$10.6 million including a 10% contingency
  • Estimated capital cost saving, compared to average Canadian potash mine development1, for a similar work package, of approximately US$71 million, or 87%
  • Budget includes engineering design, construction, and land easements for both powerlines and the mine downgrade substation
  • Engineering firm, Clemessy, a leader in design and construction of high voltage powerlines and transformer stations, has supported Golder in the technical feasibility and cost estimates
  • Technical solution and cost ranges confirmed to be feasible by the Moroccan national grid operator (‘’ONEE’’)
  • Proposed site location is approximately 15km from the planned connection point to two 225KV national grid electricity lines
  • Continued discussions with Voltalia for the supply of green sourced electricity has confirmed potential for a large savings in energy tariffs relative to Scoping Study assumptions
  • Continued discussions with in-country gas supplier confirmed onsite gas (LPG) storage facility can be constructed at supplier’s expense, with zero capex required by Emmerson
  • Design and estimate completed by Golder according to AusIMM guidelines for capital cost estimates