As a low-capital, high-margin project, it is set to be a “very rare asset,” Emmerson said.
Rabat – Global company Emmerson Plc plans to launch the construction of a potash plant worth $400 million in Khemisset, Morocco by the end of 2021.
The plant is set to be operational by the end of 2023, according to CEO Graham Clarke.
Reuters expects the plant to be Africa’s largest potash project.
The outlet quoted the company’s CEO as saying that the project will have a low capital cost and “high margins.”
He said that the “payback period is three-five years depending on the potash price.”
The project will be located in Khemisset, approximately 95 kilometers from Rabat, and will create 760 direct jobs.
Emmerson said that the company’s main objective is to develop the project in northern Morocco.
“The project has a large JORC Resource Estimate (2019) of 537Mt @ 9.24% K2O and significant exploration potential with an accelerated development pathway.”
Golder Associates completed a feasibility study on the project, which confirmed its potential as a world-class mine, Emmerson said.
The feasibility study showed that the project could a “very rare asset” in the industry as a low-capital cost and high-margin potash mine.
The company’s scoping study showed that the infrastructure will be able to produce approximately 810,000 tonnes of “K60 MOP per annum during steady state operations over the initial 19-year mine life.”
The study also showed that Emmerson’s project in Khemisset, Morocco comes with an “incredible low pre-production capital cost of $387 million, less than half of its global peer average capital intensity.”