Isle of Man-based Emmerson Plc, developer of the potash and salt Khemisset Mine project in northern Morocco, has reported that the environmental permit for the project has advanced closer to approval by the relevant authorities, and a number of important issues that had held up progress have been resolved.
The discussions have now moved into the specifics of the Khemisset’s project’s water management, which is a key area of concern for Morocco following low rainfall in recent years, Emmerson said in a fourth-quarter update released on Jan. 9.
The company did not provide any indication when it might secure the environmental permit, saying while “cautiously optimistic” that the company’s proposals will be accepted, “the timing of the approvals is in the hands of the Moroccan authorities.”
Emmerson also reported basic engineering workstreams had “substantially” progressed during the fourth quarter, with design of the processing plant by US-based Barr Engineering now 90% complete, and infrastructure design by the Moroccan firm Reminex SA 80% completed.
It said both streams will be completed within the first quarter of 2023 “in readiness for financier due diligence and the transition to project execution.”
The company is also finalizing the first stage of securing the bank funding needed to bring Khemisset into construction. It has previously reported it has received “strong” expressions of interest from international and Moroccan lending banks, as well as development financial institutions and other financing counterparties, to underpin the construction financing package.
On Jan. 3, Emmerson announced the appointment of Liberum Capital as nominated advisor, following Liberum’s appointment as joint corporate broker to the company in February 2022.
Emmerson in November signed nonbinding offtake Memoranda of Understanding (MOU) with Switzerland-based companies Keytrade AG and Hexagon Group AG (GM Nov. 23, 2022)
The offtake deal with Keytrade is for the sale of a minimum of 245,000 mt/y of potash for a period of 10 years. With Hexagon, the offtake deal is also for a minimum of 245,000 mt/y of potash plus a minimum of 500,000 mt/y of salt product, both for a period of 10 years.
The MOUs account for some 65% of targeted annual potash production of 800,000 mt at Khemisset and 50% of the targeted 1 million mt/y of salt production. The operation is expected to have a 19-year mine life.