Potash junior Emmerson plc, Isle of Man, has provided an update on its conceptual, staged development for the 100 percent-owned Khemisset Potash Project in northern Morocco. The company announced in February its plans for the phased development study, which is aimed at reducing upfront capital costs and incorporating expansion options into the development plan for the project (GM Feb. 19, p. 36).
Emmerson said on April 15 while its intention remains to build the full-scale project, the recent assessment undertaken to scoping study levels identifies the opportunity to start with a smaller-scale start-up operation producing 350,000 mt/y of potassium chloride. This would be followed by a series of expansion phases to increase the level of potash produced, and add in the production of de-icing salt in increasing quantities, as well as SOP.
In full production, the Khemisset project would produce 800,000 mt/y of potassium chloride, as previously indicated, 240,000 mt/y of SOP, and 4 million mt/y of de-icing salt.
Proposed phased development
| Phase 1 | Phase 2 | Phase 3 | Phase 4 | Total | |
| Potash production ‘000 mt | 350 | 385 | – | 270 | 1,005 |
| Potash consumed by SOP production ‘000 mt | – | – | (205) | – | (205) |
| Potash sold ‘000 mt | 350 | 385 | (205) | 270 | 800 |
| SOP production ‘000 mt | – | – | 240 | – | 240 |
| De-icing sale production ‘000 mt | – | 1,000 | 1,000 | 2,000 | 4,000 |
| Estimated capex (including contingency) US$m | US$286.9m | US$140.0m | US$143.7m | US$130.4m | US$701.0m |
The potash junior put the upfront capex for the first phase of development, including contingency, at an estimated US$286.9 million, with total capex for the entire project at an estimated US$701.0 million. It said subsequent phases post phase one through to full production would likely be financed from internal cash flows.
Following securing the mining license in February for the Khemisset project (GM Feb. 12, p. 37), Emmerson anticipates initiation of construction by the end of 2021, “finance permitting.”