Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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.
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
I agree on the political point. If you look back on the June RNS from 2021 all the issues raised are the same issues (water, Brine, Tailings), that are being used as the reasons for not issuing the permit. Yet Emmerson (according to that RNS), addressed the tailings & Brine issues back then & as we know the wastewater solution has since been implemented in the last revision.
https://www.rns-pdf.londonstockexchange.com/rns/9709C_1-2021-6-24.pdf
Yes they moved to a dry tailings method last year. I have attached a great link from April 22, so some aspects (waste water & dry tailings), have changed but it is the best research paper out there.
https://emmersonplc.com/wp-content/uploads/2022/03/OriorCap-Emmerson_2022_03_03.pdf
Hi, without the 2022 drought I don't think EML would have had a problem getting started.
Water is the fundamental issue, I believe the other parts are minor.
In my own company we regularly get audited & if the audit fails on something serious the auditor will often not only highlight the serious breach, but also mention other parts in which they are not happy. Without the serious breach the other failures would never be mentioned. This might also be the case here.
Where does this currently leave EML?
As mentioned other issues are solvable water is more of an issue. EML should be finding solutions to the other parts while we await the national committee decision.
I don't think we will be hearing about a decision for a while. August is a quiet period with the government on holiday.
Hopefully we might hear something late September/October time. If it came sooner I would be surprised.
I had hoped that a local journalist could uncover a bit more information but although he has enquired with the CRUI they have not responded to his questions which centred on the possible loss of over two thousand potential jobs within an area with high unemployment.
I am not sure the local population were/are aware of just how many jobs EML will create & that they intend/intended to employ locals.
I am still positive about eventually receiving the ESIA, if we break it down there were four area of concern.
I am hopeful that EML can put the brines injection to bed (it simply needs EML or its partners to prove we can dispose of brines this way (so a technical analysis put down on paper).
The neighbouring farmers I am sure can be accommodated with a bit of compensation.
The salts on the surface, again not that much of an issue, cost wise or effort to build warehouses to store the salts.
That leaves the biggest issue the water supply. There is a large dam building project & desalination projects ongoing with a target date of 2027. Given EML have 2yrs to construct the mine & it won't be starting pre 2024 we are almost at the same point in time to come onstream as the improved water supply does.
The ESIA will have strings attached I am sure & an initial decision may need EML to go back & re submit the ESIA again but eventually they should get there.
GL
I have not seen or heard of run off problems being an issue, this is from the Jan 23 update
"Emmerson has also decided that a dry tailings system will be employed at Khemisset to reduce water consumption and eliminate any risk of saline fluid outflow in the event of an extreme rainfall event."
and this is from July 22 ref deep well injection.
"One of the holes has been extended to provide detailed data to feed into the design of the DWI (Deep Well Injection) for some of the process tailings. The 8km of ERT surveys have covered the tailings storage facility (TSF) area and the Mining Infrastructure Area (MIA), for best understanding of rock competence for foundations."
I know a local (ish), journalist in Morocco & I have spoken to them to see if they have any further information in regarding why the ESIA was turned down, I have given them the outline of the story & they are going to ask the CRUI for comment.
I am currently awaiting I have also asked if they could establish the reversal process. The main angle I was driving at with the journalist was the loss of over 2,300 potential jobs in an area with high unemployment. I have always believed that having the locals onboard with the project would be a positive step.
Of course the RNS last week was a massive disappointment to all of us, there were 5 issues mentioned,
water supply
disposal of brines
salts storage at ground level
neighbouring farms/landowners.
Traffic on the main highway
Most of these can hopefully be overcome, unlike others I do not believe this is a 50/50.
If we do appeal & get turned down again there will be reasons as to why & Emmerson will have to look at other solutions.
The only one I believe will be an issue is the water supply.
As soon as I hear something I will post (although I am sure it will probably appear in print before I post.
GLA
When you say OCP next door that is not quite the case. OCP open mine phosphates, they do not mine potash. Their potash claim blocks lie within EML's licence area meaning it would never be worthwhile to mine the claim. I have always thought that EML would eventually buy the claim area from OCP.
I am not sure as regards OCP involvement.
They own a vast area within the EML claim & could never mine it with EML licence area surrounding it as it does. This would have almost certainly lead to a purchase or discussions to buy from OCP.
I am sure an offtake would be a definite possibility but part owning does not seem to be the way they operate.
SP wise today is not great, unless you are topping up or new to this that is.
Not long before the next update lets see what the BOD have to say.
GLA
We are a week or two away from a Q2 update from the BOD. Why not wait & if you don’t hear anything then or if it’s not the news you want, then decide on how you want to invest?
Calling anyone connected to EML to me looks like desperation.
This is AIM it’s not for the faint hearted.
GL
Hajar Alaoui is the Permitting and Approvals Manager.
She started back in April 22, her background is within environmental permits.
She is also an expert on using grey/waste water, which is why EML either suggested using it or brought Hajar in to over see the resubmitted ESIA.
There isn't a lot more for EML to say it is in the hands of the Moroccan government now.
What we do know is that the last RNS stated only finer technical details were being evaluated.
There has not been any further communication since that update, or tweets for that matter & the wording in the last RNS left me to believe that Graham had been expecting to have the news we all wanted to hear.
This is guesswork, but I believe the reason for the current silence is that we are almost there. Yes this could have been wrote many times over the last few years (I have only been in here since last Apr/May), but the lack of communication certainly gives me hope that its not too far away.
GLA
Droughts in Morocco have been a recurring theme but its been 40yrs since the last drought as bad as the one that has effected the country over the last 2yrs. In April the countries reservoirs were only 25% full that is after the wet winter period, it impossible to know how this has effected the ESIA application but given the stumbling block is & has been water for at least the past 12mths & probably longer it isn't a reach to presume the drought has delayed EML.
Regarding state ownership the latest mining code is detailed in the link below. There is no legislation or suggestion that the government have to acquire some % of ownership.
https://www.nortonrosefulbright.com/en/knowledge/publications/070cda05/morocco-mining-guide
We may never know what has gone on with this application & why it has taken forever, EML employed a specialist in environmental licensing (& waste water usage), in April last year. It was not long after that EML tabled the waste water solution.
We are in the hands of the Moroccan bureaucrats it has taken forever, lets hope it's not much longer.
GLA
The trouble with saying "they need to get some news out" is if it isn't confirmation of the ESIA then it's really not that newsworthy at this stage & holders will criticize them for it.
Take a look at their twitter feed it was lively up until 6 weeks ago, but every time they tweeted anything positive they got negative replies effectively telling them to stop tweeting unless it concerned the ESIA.
I actually believe (I have been wrong on many occasion's BTW), that the current radio silence is a good thing. Look at the previous updates GC words "I had hoped to be in position to provide a definitive update on this process"
Hindsight is of course a wonderful thing but EML never expected for this licence to have taken so long, this isn't naivety either, no company I knowingly know about in Morocco has had to submit an ESIA for such a large project since the mining laws changed. Add to that a drought that is the worst for 40yrs & EML hit the perfect storm.
The ESIA will come, "working on the finer details" as per the Q1 update isn't a back to the drawing board statement.
We are close, but just spurting out any non ESIA news won't help.