Potash developer Emmerson Plc, Isle of Man, is targeting mid-2022 for the start of production at the Khemisset potash mine under development near Rabat in northern Morocco, according to a Bloomberg report, citing Emmerson CEO Hayden Locke.
Emmerson on June 4 said it had raised gross proceeds of £6 million ($8 million) from the sale of 200 million new shares to help fund further work on Khemisset. The company is reported to have already spent $20 million on the project, and its chief executive said it will invest between $200-$300 million on the mine’s development after construction begins.
The company is targeting an output of 700,000 mt-1 million mt/y over an expected 20-year mine life. Khemisset has a large JORC Resource Estimate (2012) of 311.4 million mt @10.2 percent K2O, which lies at a shallow depth.
Locke said the company is looking to OCP SA as the potential customer for Khemisset’s output, as the Moroccan producer does not have any potash of its own, adding that the planned mine is ideally located to benefit from the expected high growth in demand for NPK fertilizers on the African continent. In addition, Khemisset is located close to a number of potential export ports on the doorstep of European, Brazilian, and U.S. markets, the company said.
Emmerson on June 4 was re-admitted to the London Stock Exchange following the completion of its acquisition of 100 percent of the share capital of Moroccan Salts Ltd., the previous holder of the Khemisset potash project, by way of a reverse takeover. The two firms had signed a binding memorandum of understanding for the transaction last October (GM Oct. 20, 2017). Emmerson will pay some £10 million ($13.4 million) for the acquisition, to be satisfied by the issue of over 333.3 million new shares in the company.