Emmerson Plc has received confirmation that direct cash subsidies and further tax concessions are available to it, via negotiation, under a formal investment convention agreed with the Moroccan Government for its 100% owned Khemisset Potash Project in Northern Morocco. Moroccan Government incentives could contribute up to 10% of the project’s total CAPEX that would cover several potential areas including investment in external infrastructure, land acquisition and training costs.
The Moroccan government could potentially provide up to US$40 million in the form of direct subsidies. The project is eligible for several additional fiscal concessions and tax breaks, which are expected to enhance its post-tax cash margins. Emmerson will also benefit from invaluable formal support from Government agencies in all project implementation processes in Morocco. Negotiations with the Government for an investment convention to start once the full feasibility study is complete by the end of 1H20.
“These incentives are expected to further enhance the already outstanding economics of the Project,” Hayden Locke, CEO of Emmerson, commented. “They follow the recent Preliminary Economic Assessment for our Sulphate of Potash project, which will also lift margins significantly, taking the average potential EBITDA across our portfolio of assets to over US$300 million per annum and the total post tax NPV10 to in excess of US$1.8 billion. We continue to examine various options to optimize the industry leading capital cost Khemisset Potash Project’s potential as we advance it towards completion of full feasibility, which we are confident will be delivered in the first half of 2020.”
