Emmerson shares down as wait continues for environmental approval

Mon, 08th Jan 2024 09:53

(Alliance News) - Emmerson PLC on Monday said it is still waiting to obtain environmental approval for its Khemisset potash project in Morocco, where "important process optimisation work" is under review.

Shares in Emmerson were trading 4.2% lower at 1.39 pence each on Monday morning in London.

The Morocco-focused potash development company explained that a session of the country's Commission Ministerielle de Pilotage is required to obtain approval for the environmental & social impact assessment. This session has not yet taken place, as the ministerial committee "was unable to meet during the second half of 2023".

Emmerson said it understands this to be due to other matters "taking priority at governmental level, not least the co-ordination of relief efforts related to the earthquake in September 2023."

The firm "has repeatedly been assured" that the meeting will occur soon, and "continues to lobby" to make sure its application will be considered favourably.

Basic engineering workstreams for Khemisset, Emmerson added, are now at the stage where only the final documents are necessary. It will not undertake any further work regarding the basic design pending the ESIA approval.

Additionally, Emmerson said it continues to examine process design and optimisation, and is finalising details of these enhancements. It expects the work to improve Khemisset's environmental footprint while simultaneously offering "considerable economic upside".

Chief Executive Graham Clarke said the environmental approval delays were "frustrating".

However, he said: "Discussions with various parties and advisors have continued to be positive...We believe the matter will be dealt with soon, based on feedback, but we are unable to provide any confirmed dates as the matter is in the hands of the government."

Clarke added: "Once we have the ESIA approval, we will be in a position to move forward quickly with fundraising and technical work. We will of course provide updates as soon as we are able in all these matters."

By Emma Curzon, Alliance News reporter

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