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I have been thinking about this since seeing the article earlier today & I can only think this could be very, very positive for EML.

There are so many unknowns, its difficult to speculate but, this might be what GC was talking about in the last RNS (ref better financials & environmental improvements) .

Sharing a processing plant with OCP would be amazing, especially if they pay for it!

https://medias24.com/2024/01/22/ocp-lance-un-projet-dexploitation-de-potasse-a-khemisset/

Oh no sorry guys false alarm.

It pinged on my alerts & I read January not noticing 2023.

Sorry for getting anyone’s hopes up. Still unsure why Google alerted me.

My bad

GLA

Well looks as though the meeting has taken place today.

https://www.cg.gov.ma/fr/node/10991

Let’s hope for that long awaited RNS.

GLA

Yesterday’s RNS, still leaves us guessing as to when the meeting will come this is the only issue keeping the SP down, but there was more to take out of the RNS.

Firstly any talk (as in the last month), of the company needing to raise funds has been answered. There is cash in the bank for a further 12mths.

GC mentioned there are not any issues not addressed in the redrafted ESIA. Importantly the use of wastewater, tailings storage & brine disposal have now been addressed.

GC mentioned further optimisation which would offset set environmental issues & add economic upside to an already very economical mine. Iron from the tailings maybe?

Lastly the banks continued backing is welcoming especially as £230 of the debt raise is backed by the UK export finance which is important as with this backing EML get better terms.

GLA

Nice to hear the cash position is ok for 12mths, “ Emmerson currently has US$3.5m of cash, sufficient for 'at least’ the next 12 months", added the broker”

Page 11, of the corporate presentation (2yrs build time),

next step after receiving ESIA is BFS (6mths according to GC).

https://www.emmersonplc.com/investors/corporate-documents/

The decision is with the national investment committee. This is a new committee which has so far met twice, once in May & again in July.

No one knows when the next meeting is due (it may have already been pushed back due to the earthquake in September), as far as we have been told the decision on granting an ESIA for the mine will be made by this committee.

https://www.cg.gov.ma/fr/conseils-administratifs?field_type_conseils_target_id=5

Sloppy, the July RNS stating that the regional gov could not authorise the ESIA was a strange on as all the reasons set out (tailings storage, brines, water) were old issues raised back in 2021, and according to Emmerson all had been addressed. It's either the local committee dismissed the improvements/solutions or the last RNS was a C&P of the issues raised in 2021.

If it is the former, then hopefully the national committee already have the revised application.

Fortunately, when it comes to addressing the drought the Moroccan gov are not messing around. There is a new dam planned for the Khemisset area (see link below). They have also just finished a waterway over near Rabat which is adding billions of gallons of water which used to just enter the ocean.

I don't think EML need to be that creative on water, they have already planned to use wastewater. A compromise might be that EML have to stop/limit production in extreme drought circumstances.

The other alternatives could be that we are charged more for the water we do use in drought conditions.

The Brines are to be deep well injected which according to a previous RNS has already been trialed or is to be, before this system is used.

https://www.lavieeco.com/au-royaume/voici-les-chantiers-phares-du-departement-de-nizar-baraka-en-2024/

https://northafricapost.com/70802-morocco-completes-first-phase-of-major-waterway.html

DunnaRunna, nice to see a well thought out post. I agree with you GC is the man for building & running the potash mine.

Nobody expected such a hold up on the ESIA, it was as you say thought of as in the bag.

When the application dragged on GC rightly brought in an experienced staff member (Hajar Alaoui Permitting and Approvals Manager), who had delt with ESIA applications in the past.

As I have mentioned before if the permit isn't granted right now then, I cannot see why EML could not negotiate a satisfactory compromise given the huge financial benefits for the company, country & local employment opportunities the project brings.

Goldbar, there isn't much for them to say, the only issue that matters is the ESIA. If they mention off takes, debt financing, or progress on the plant design, they would be shot down as none of it matters without the permit.

With regards to the ESIA, as you know EML are awaiting news from the next national investment committee.

https://www.cg.gov.ma/fr/conseils-administratifs?field_type_conseils_target_id=5

GC has been in Morocco a few times over the last month, so one would hope (aka complete guess), that he has had meetings with official's who will need the revised details of the plant & importantly water use in order to make the decision at national committee level.

Obviously the best case scenario is it's granted at the next meeting & EML can crack on with the BFS (6mths).

The alternative is if they ask EML to resubmit or adjust the plant further for water conservation purposes.

There may be other positive/negative outcomes, given it is such a world class asset which makes millions even when potash prices are low, one would hope that a deal could be struck.

I found this interesting, Highfield have their Spanish potash mine & have updated the FS from last year prices of course have risen but it does not look too bad.

https://wcsecure.weblink.com.au/pdf/HFR/02737027.pdf

Interview also,

https://www.proactiveinvestors.co.uk/companies/news/1032450/highfield-resources-updates-feasibility-study-in-strong-potash-market-1032450.html

We all know that the only way the SP will turnaround is on news of the ESIA being approved. Until then we will either drift as we have been since July or worse see a drop like this week when someone/folk have had enough. Without the permit the project is dead, which is incredible given the financial rewards this project could bring to the locals, the gov in tax's & the shareholders & financial investors. Even at today's low potash prices the mine would make $100m+.

Graham I understand has been over in Morocco this week, so I would imagine involved in meetings & trying to press for the ministerial committee to approve.

We are in the Moroccan authorities hands.

Ideas, thank you for the link & your thoughts,

What drew me down that line of thought was the fact that all the original 2021 issues were given for the ESIA not being awarded, yet we know solutions to almost all of these (water usage via waste water, test drilling for brines), & surface tailings storage have been implemented), yet the very same issues were given as to why the permit was not granted.

Interested on your thoughts on this.

Have a listen to GC on the interview from 18/07,

1min in, He says "the decision hadn't been taken at regional level"

https://www.youtube.com/watch?v=qyWYyncEBhE

As you say its guess work as we don't know the full picture.

I don't think the regional committee dismissed our permit request, I think it was above their pay grades given it is such a large project.

If you look at the issues raised in the RNS from 2021, the reasons given, were exactly the same issues as now,

water, surface tailings & brine injection.

EML have found solutions to all of the issues raised but it looks as though none of the above was taken into account, which takes me back to my original interpretation that the permit was not declined more that they could not issue a permit, which allowed EML to go above & higher to ministerial level.

Https://www.atalayar.com/en/articulo/economy-and-business/moroccos-dams-reach-3222-capacity/20230907113325190494.html

I wonder if this is the ministerial committee that will have the final say over the ESIA permit.

It looks as though its first meeting was back in mid May, they then met again mid July.

If that routine continues we could be looking at mid September for a decision,

https://www.cg.gov.ma/fr/node/11344

One bit to note is the last paragraph,

"These projects will be reviewed by the Technical Committee on Strategic Investment Projects (CTPIS), prior to their final approval by the National Investment Commission."

Which may mean any initial approval may have to go to a technical committee before we hear anything.

Or EML may have had the initial approval in the July meeting & be one of these four projects awaiting approval from the technical committee.

Agree fully with the statement regarding water being the issue & that this issue has only come onto the horizon in the past couple of years.

EML put the option of waste water into their plans in July 22, but if you look at the objections back in 2021 to the project exactly the same issues (water, salt on surface & deep well injection), have been raised again, it's as if they have disregarded the work EML have done which includes solutions to all the above.

Hopefully we will be seeing improvements on the water supply side. The regional investment authority Commission for the Khemisset area is based in Rabat, where only recently a new canal which divers 1m cubic meter of water per day away from the ocean & into a local reservoir will certainly help with local water issues. Completion is October this year.

https://www.atalayar.com/en/articulo/society/the-prime-minister-of-morocco-aziz-akhannouch-visits-the-water-motorway/20230830132450190177.html

Khemissett & the mine would not directly benefit from this new found supply but it will certainly help the regional area where decisions on water & usage concerning EML's mine is located.

GLA

Regional officials were reminded about standing in the way of investments.

Royal Letter on Decentralised Investment Management

«... This Letter is also the expression of the economic dimension of our concept of authority through the elimination of all administrative obstacles that prevent the emancipation of entrepreneurial freedom as an essential lever to stimulate investment, create wealth and solve the problem of unemployment, the main cause of concern for us and for every Moroccan family. ... ».

Excerpt from the Speech of His Majesty King Mohammed VI, may God assist him, on the occasion of the presentation of the Royal Letter to the Prime Minister, relating to the decentralized management of investment.

Royal Palace of Casablanca, Wednesday, January 9, 2002