Emmerson Plc, the Moroccan focused potash development company, has secured a mining licence (ML) for its 100% owned Khemisset potash project in northern Morocco from the country‘s Ministry of Energy, Mines and the Environment. The ML provides the company with the exclusive right to develop and mine the potash deposit, within the perimeter of the ML, in the Khemisset basin ahead of the anticipated initiation of construction by the end of 2021. Initially valid for 10 years, the mining licence is allowed for renewal every 10 years till the resource is exhausted. The grant of the ML also follows a successful application process including the submission of a proven, JORC compliant, ‘Mineral Resource Estimate’ (MRE) and the confirmed technical and economic viability of the project, which was satisfied by the feasibility study. The issuance of the ML also follows the company’s submission of the environmental and social impact assessment (ESIA) package to the relevant governmental bodies for approvals in November 2020.
Located in the Khemisset basin, the Khemisset potash project is estimated to have a pre-production capital cost of $387m. The initial life of the mine is 19 years. Emmerson expects to begin construction on the potash mine by the end of this year. By producing up to 800,000 tonnes of potash per year, for export or domestic consumption, Khemisset is forecast to deliver considerable economic benefits to our stakeholders including an anticipated 1% increase to the national tax revenues of Morocco,“ Emmerson CEO Graham Clarke commented. “At the local level, the benefit to our stakeholders is even more important, with an estimated 40% increase to the local area GDP.” Clarke also stressed that “this is another major milestone in the development of what is to become the first large scale potash mine in Africa. We are grateful to the Ministry that provided considerable support, greatly assisting us throughout the application process.“
According to Emmerson, the mining licence spans an area of 558km2, covering all of the current Mineral Resource Estimate (MRE) area that was submitted by the company. Emmerson also revealed that the MRE area has a global resource of more than 500 million tonnes, but only 43% of the MRE is included in the mine life, which was identified in the feasibility study. The company said that licencing the expanded area was a major strategic decision as it facilitates expansions or mine life extensions in the future under the current permit. The Khemisset potash project is located about 90km from Moroccan capital Rabat, and the planned Kenitra Atlantique bulk port. From the Mohammedia port, the potash mine is at a distance of 150km.
