Emmerson (EML) is developing its wholly owned Khemisset Potash Project located in Northern Morocco.
The project has a large JORC Resource Estimate (2012) of 311.4 million tonnes @ 10.2% K2O and significant exploration potential.
The need to feed the world's rapidly increasing population and the resulting growth of fertiliser consumption is driving demand for potash.
The company released estimates which have confirmed the potential for significant capital cost savings for the Project due to its proximity to excellent infrastructure.
Access to logistics is key to low capex in potash projects.
The project has an estimated capital cost saving for similar work package of 99%, when estimates for average Canadian potash mine development amount to US$130m.
Only 1.2km of paved roads needs to be constructed to connect to existing highway (A2 toll road) and there is no requirement to construct expensive rail spur connections.
Hayden Locke, CEO of Emmerson, commented: “The Khemisset Project benefits from its proximity to outstanding infrastructure including existing, high quality, highways and ports.”
“Access to this infrastructure results in significant capital cost savings in construction, especially when compared to other development stage potash projects globally, which typically require significant investment in roads and rail connections to transport their product to an export port.”
The total budgeted capital cost required to connect the Khemisset site to existing highway infrastructure is approximately US$1.25 million including a 30% contingency
Khemisset is well 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.
Emmerson shares were up over 5% to 4.8p following the announcement
Follow news & updates about Emmerson here:
