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Consolidation of Khemisset Project exploration permits

Published by , Editorial Assistant
Global Mining Review,

Emmerson Plc, a Moroccan-focused potash development company, has announced that after consultation with the Ministry of Energy, Mines and Sustainable Development, it has received the approval required to consolidate 21 of the core exploration permits of the company's Khemisset Potash Project in Northern Morocco into a single permit encompassing the combined area of the 21 permits.

The company’s subsidiary, MSL Minerals SARL, is one of the first companies in Morocco to achieve a consolidation of permits under the new mining code, which was implemented in 2015, and highlights the perceived importance of Khemisset to Morocco's rapidly developing mining sector. The scoping study released for Khemisset confirmed it has the potential to be among the lowest capital cost and highest margin potash mines globally, delivering world class economics including EBITDA margins approaching 70% and a post-tax NPV10 of more than US$1 billion.

Aziz Rabbah, Minster of Energy, Mines and Sustainable Development, commented: "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. 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."

Hayden Locke, CEO of Emmerson, commented: "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.

"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.

"The feasibility study is progressing very well, and we look forward to releasing the final study in the first half of 2020, which we believe will further confirm the outstanding potential of the Khemisset Potash Project."

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