Emmerson Plc: Commencement of ESIA Baseline Studies enables accelerated development at Khemisset potash project
Tuesday, February 12th, 2019
Emmerson Plc (“Emmerson” or “the Company”), the Moroccan focused potash development company, is pleased to announce that it has commenced the Environmental and Social Impact Assessment (“ESIA”) baseline study for its Khemisset Potash Project (‘’Khemisset” or “the Project”).
The Company recently released a Scoping Study which demonstrated that Khemisset has a rare combination of low capital cost to production and among the highest EBITDA margins in the industry. This resulted in outstanding economic metrics, including a post-tax NPV10 of approximately US$1.1bn using industry expert (Argus FMB) price forecasts.
The ESIA baseline study is the initial workstream in the process of delivering a detailed ESIA, the key supporting document that will be delivered to the Ministry of Mines to convert Emmerson’s exploration permits (“Permis de Recherche”) to a Mining Licence (“Licence d’Exploitation”).
Emmerson is committed to developing the Khemisset Project in accordance with the world’s highest environmental standards. The ESIA will be structured and executed to adhere to the IFC Performance Standards and the Equator Principles, which act as guidelines for best practice in terms of environmental and stakeholder risk management and are generally required by debt financing institutions to achieve financial close.
Following a rigorous selection process, Moroccan headquartered firm Phénixa S.A.R.L (‘Phénixa’) has been appointed to manage the baseline study and develop the framework for the ESIA. The scope of work assesses the potential impacts of the Project on various aspects within the project area and include:
- 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
Phénixa has a strong track record in the delivery of ESIAs to support approvals under the Moroccan regulatory framework, as well as for international financing requirements for mining projects. It has assisted several large-scale mining and energy projects in Morocco, including managing the ESIA process and the Environmental and Social Monitoring Program for the Achmmach Tin Project, owned by ASX listed Kasbah Resources Ltd.
Hayden Locke, CEO of Emmerson, commented:
“Commencing the environmental baseline studies represents a further development milestone at the Khemmiset project. The ESIA will be the key document underpinning our application for a Mining Licence for the Khemisset Project. We are using local consultants with extensive in country experience, having been involved in some of the largest projects in Morocco including recently delivering an ESIA and Environmental and Social Monitoring programs to support an application for a Mining Licence.
“The outstanding results of the Scoping Study for Khemisset confirmed that Emmerson controls a potentially world-class development stage potash asset and has provided us with the confidence to commence the ESIA process now to ensure our accelerated development timeline remains achievable.”http://www.emmersonplc.com