LONDON (Alliance News) - Emmerson PLC on Tuesday said it has produced an estimate for the costs involved with providing electricity and gas to its Khemisset potash project in Morocco.
The total budgeted cost for constructing a connection between Khemisset and existing electrical infrastructure, including a 30% contingency, is USD5.7 million.
The proposed site location is 5.5 kilometres from the expected connection point to 60 kilovolt electricity lines and 7 kilometres from the closest electrical substation.
In addition, talks with a Morcoccan gas provider have confirmed that an on-site gas storage facility can be built at the expense of the supplier with no contribution from Emmerson required.
Emmerson said it is encouraged, following these figures, in its belief that Khemisset will be a low capital cost development.
"The design and cost estimates for the access to mineralisation and connection to logistics highlighted significant cost savings already available to the Khemisset project. This announcement further enhances our belief that the scoping study for Khemisset will present a low capital cost, high margin proposition which should result in compelling economic metrics," said Emmerson Chief Executive Hayden Locke.
Shares in Emmerson were down 5.2% at 4.41 pence on Tuesday.
Emmerson (EML)