Last checked at 18 Mar 2019 07:00
Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining
18 March 2019
Completion of Environmental Baseline Study moves world class Khemisset project
closer towards production
Highlights
· Completed Environmental Baseline Study for Khemisset Potash Project showed no areas of concern that could impact the scale, location, cost, or profitability of the Project
· Study undertaken by experienced Moroccan environmental consultants, Phénixa S.A.R.L. ("Phénixa") and overseen by international consultants OTEBA Pty. Ltd. ("OTEBA")
· Planning underway to commence a full Environmental and Social Impact Assessment ("ESIA"), which will comply with global best practice
· Once completed, the ESIA will form a core component of the application for a Mining Licence at Khemisset
Emmerson Plc, the Moroccan focused potash development company, is pleased to announce that it has completed an Environmental Baseline Study ("Baseline Study") for the Khemisset Potash Project ("Khemisset" or "the Project").
The findings of the Baseline Study highlighted no fatal flaws to the future development of the Project as envisaged in the Scoping Study completed in November 2018 (refer to announcement of 20 November 2018).
The Scoping Study confirmed that Khemisset has the potential to be among the lowest capital cost, highest margin potash projects in the world with outstanding economics, including forecasted EBITDA margins in excess of 60% and a post-tax NPV10 of over US$1.1bn, based on industry expert price forecasts.
Hayden Locke, CEO of Emmerson, commented:
"We are delighted with the successful completion of the Environmental Baseline Study, the results of which show there are no environmental or social red flags which could impact our planned accelerated development schedule.
"The completion of the Baseline Study is an important step forward and allows us to continue to rapidly advance the Project while minimising the potential for adverse social and environmental impacts in the future.
"Our consultants, Phénixa and OTEBA, have delivered a thorough and professional study which sets a fantastic precedent for the planned high standard environmental and social impact assessment, in addition to our ongoing monitoring and risk management programmes.
"As we advance our planning for construction of the Project, we are committed to complying with global guidelines such as the IFC Performance Standards, which are important for future financing discussions.
"We look forward to continuing to deliver on our many development objectives and timelines as the year progresses and we move the world class Khemisset Project towards production."
Further Information
The Baseline Study was completed by Phénixa, who have extensive experience consulting on environmental matters for natural resources and industrial projects in Morocco. Oversight was provided by international consultants OTEBA who have global experience overseeing environmental and social studies which are compliant with International Finance Corporation ("IFC") standards and Equator Principles.
These standards are the global benchmark for the development of mining projects and complying with them is vital for mining projects, those seeking finance from international capital providers, in particular.
The Baseline Study assessed the potential impacts of the Project on various aspects within the project area including:
· Land uses, social settings, and habitat types
· Soil types, flora, and fauna
· Climate, topography & elevation
· Surface water, and ground water
· Archaeology, anthropology, and cultural heritage
The Baseline Study reported no areas of concern which would significantly alter the planned scale, location, cost, or profitability of the Project.
Planning is underway for the commencement of full ESIA, including ongoing baseline studies, which will form the core component of the application for the Mining Licence ("Licence d'Exploitation") for Khemisset.
Emmerson is committed to developing the Khemisset project in accordance with the world's highest health, safety and environmental standards and as such, it will complete all studies and planning for Khemisset, including the ESIA, to IFC and Equator Principle standards.
**ENDS**
For further information, please visit www.emmersonplc.com, follow us on Twitter (@emmerson_plc), or contact:
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Notes to Editors
Emmerson's primary focus is on developing the Khemisset Potash Project located in Northern Morocco. The project has a large JORC Resource Estimate (2012) of 311.4Mt @ 10.2% K2O and significant exploration potential with an accelerated development pathway targeting a low capex, high margin mine. Khemisset is perfectly located to capitalise on the expected growth of African fertiliser consumption whilst also being located on the doorstep of European markets. This unique positioning means the project will receive a premium netback price compared to existing potash producers. The need to feed the world's rapidly increasing population is driving demand for potash and Emmerson is well placed to benefit from the opportunities this presents.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.