Rabat – The British mining company Emmerson has appointed a syndicate of international and Moroccan banks to fund its mining operations in Khemisset, a town in northern Morocco.
According to converging reports, discussions between Emmerson and the banks indicate that the company will secure $310 million.
The syndicate of banks includes ING Bank, Morocco’s Banque Centrale Populaire, Bank of Africa, and another international European Bank, reports indicate.
Reports further suggest that the funding will be split between multiple stakeholders, with the UK Export Finance providing $230 million, while the remaining $80 million will be obtained through different financing instruments.
Emmerson’s Chief Executive, Graham Clarke said: “We are delighted to have received strong demand for the project financing from both lenders and ECAs.”
Clarke added that Emmerson’s selection of “MLAs with significant international and domestic expertise in natural resources project financing reflects the quality of the Khemisset project, Morocco as an investment jurisdiction, and market recognition of the critical importance of potash in the context of international food security.”
Of the significance of securing the funds, Clarke explained that “the appointment of the MLAs represents an important milestone in the company’s progress towards establishing Africa’s first commercial potash mine for nearly 50 years.”
Following the news, Emmerson’s shares were up 8.9% on Tuesday this week.
Emmerson holds a 19-year potash exploration license in Morocco. With this license, the British company is set to invest an estimated $2.5 billion in the North African country.
The company says that the annual turnover of potash production is set to reach $1.4 billion post-tax, with annual potash production being projected to reach 810,000 tonnes.
In September 2022, the company set up a potash production factory in Khemisset under a $47 million investment budget. The factory is set to export to European, Brazilian, and US markets.
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