The Khemisset Potash Project

Khemisset Project

Emmerson’s primary focus is developing the Khemisset Potash Project located in Northern Morocco.

The project has a large JORC Resource Estimate (2019) of 537Mt @ 9.24% K2O and significant exploration potential with an accelerated development pathway. The Feasibility Study completed by Golder Associates has confirmed the findings from the Scoping Study, which showed that Khemisset has the potential to be a world class, low capital cost, high margin potash mine, which is a very rare asset in the industry.

Since then, Emmerson has made a further development at the Khemisset Potash Project, in the form of the Khemisset Multi-Mineral Process (KMP). A Scoping Study was completed for this transformational enhancement to the Khemisset Project.

KMP involves the treatment of magnesium and iron-rich brines to create struvite and vivianite and by-products of salt and ammonium chloride, before recycling the brine. Struvite and vivianite are high-value, slow-release fertilisers which command a premium price, likely to be well-suited to the African market.

KMP has significant environmental benefits, including the elimination of the need for Deep Well Injection (DWI), the reduction of water consumption by 50%, the production of slow-release fertilisers, which are used to combat phosphate run-off and reduce application rates for farmers, and the increase of potash recovery from 85% to 91%. KMP is patent protected as a breakthrough discovery. This novel process is applicable to other carnallitic and rinneitic potash deposits and has the potential to generate a licencing revenue stream.

The KMP study would require minimal changes to the plant design with net capex reduced by US$14 million to US$525 million, less than half of its global peer average capital intensity. KMP also further enhances the already robust economics for Khemisset with a post-tax NPV8 increase from US$1.0 billion to US$2.2 billion and an increase in the IRR from 26% to 40%, to produce over 0.7 million tonnes of K60 MOP per annum during steady state operations over the initial 19 year mine life.

Khemisset is ideally located to benefit from the expected high growth in demand for NPK fertilisers on the African Continent. Its location, close to a number of potential export ports, on the doorstep of European, Brazilian and US markets, means that the project will receive a premium netback price relative to many of its peers. The need to feed the world’s rapidly increasing population is driving demand for potash and Emmerson is well placed to take full advantage of the opportunities this presents.

Location

The Khemisset Potash Project is located in Northern Morocco.

It is approximately 90km from the capital city, Rabat, and the planned bulk port of Kenitra Atlantique and 150km from the port of Mohammedia. It is close to the significant regional town of Khemisset and benefits from outstanding infrastructure including a network of toll roads, and electricity distribution grid and enjoys a supportive local government. Emmerson has identified pre-production capital cost savings of over US$1.2 billion relative to the average Canadian potash mine development, with cost savings of over 90% on key mine access and infrastructure.

JORC Resource