Emmerson has received the approval required to consolidate 21 of the core exploration permits of its Khemisset Potash Project in Northern Morocco into a single permit encompassing the combined area of the 21 permits. Emmerson’s wholly owned subsidiary, MSL Minerals SARL, is one of the first companies in the country to achieve a consolidation of permits under the new mining code that was implemented in 2015. The scoping study published for Khemisset confirmed it has the potential to be among the lowest capital cost and highest margin potash mines globally, delivering EBITDA margins approaching 70% and a post-tax NPV10 of more than US$1 billion.
“The Kingdom of Morocco implemented its new mining code in 2015 to provide a strong platform to facilitate and simplify the administrative procedures for local and overseas companies, with expertise in mining, to invest in our vast, largely untapped, mineral resources,” said Aziz Rabbah, Minster of Energy, Mines and Sustainable Development, adding that “we are strongly supportive of companies that approach investment in our country in the right manner, targeting the development of long term, sustainable businesses for the benefit of all stakeholders.”
Praising Emmerson’s effective cooperation with the country’s authorities, Hayden Locke, the company’s CEO, said that “the Moroccan Government and, in particular, the Ministry of Energy, Mines and Sustainable Development, continue to offer strong support to Emmerson, providing us with a high degree of confidence in our ability to advance the world class Khemisset Potash Project forward.” He also pointed out that “the consolidation of the permits is the first step for the Company in the eventual process to apply for a mining permit over the Project. It also assists in reducing the ongoing administrative reporting burden. The Ministry’s continued support will be instrumental in the permitting phase and as we develop our social license to operate in the Khemisset region.”