Isle of Man-registered potash junior Emmerson plc reported on Feb. 1 that it has completed a scoping study on a new processing method for its Khemisset potash project in northern Morocco, which aims to reduce the project’s environmental impact while enhancing its economic returns.
The Khemisset Multi-Mineral Process (KMP) represents a strategic innovation by treating the brine to remove magnesium and iron chlorides through the addition of phosphate and ammonia, allowing the residual brine to be recycled in the plant. The new approach eliminates the need for deep-well injection and reduces water consumption by approximately 50%, Emmerson said.
The
company has met with recent delays in securing environmental approval for its
Khemisset project from Morocco’s government. Khemisset’s environmental approval
was referred to the national Ministerial Committee in July 2023 after the local
regional committee was unable to approve the application due to concerns about
its impact on water resources (GM July
14, 2023).
Emmerson reported last month that it had not yet received a meeting date for
the Ministerial Committee to discuss the Environmental and Social Impact
Assessment (EISA) for the project (GM Jan.
12, p. 28). Emmerson CEO Graham Clarke said Emmerson believes the Moroccan
authorities are continuing to assess the company’s application.
In addition to the environmental benefits, the KMP creates two new products, struvite and vivianite, that have the potential to command a price premium as multi-nutrient, slow-release fertilizers. The new process also increases the recovery rate of potash from 85% to approximately 91%, according to the company.
Emmerson said the KMP is expected to improve the project’s economics, more than doubling the post tax net present value to $2.2 billion, the internal rate of return to 40%, and annual EBITDA to $440 million. The company now estimates the total capex for the project incorporating KMP to be $525 million versus the original design capex of $539 million, reflecting industry-wide cost inflation since 2020.
Clarke said the KMP is an exciting innovation that represents a major improvement both environmentally and economically. “The KMP arose from our team continuously exploring ways to minimize impact on the environment, particularly when it comes to water,” he said.