Completion of ESIA for Khemisset Potash Project

RNS Number : 6969F

Emmerson PLC

18 November 2020

 

Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining

18 November 2020

Emmerson Plc ("Emmerson" or the "Company")

Completion of Environmental and Social Impact Assessment

Emmerson Plc, the Moroccan focused potash development company, is pleased to announce that it has completed the baseline and all of the workstreams required for the Environmental and Social Impact Assessment ("ESIA") for its Khemisset Potash Project in  Northern Morocco ("Khemisset" or "the Project").  The ESIA package will now be submitted to the relevant governmental bodies for approval.

The ESIA package comes as a capstone to two concurrent phases: an extensive baseline  programme, which commenced in the early stages of the Project development; and the ESIA study, which commenced in early 2020 (See RNS dated 20 January 2020). The project team, in partnership with Moroccan headquartered firm Phénixa S.A.R.L. ("Phénixa"), has consulted the various project stakeholders at every stage and inventoried the applicable Moroccan legislation.

The related workstreams have been completed in compliance with International Finance Corporation ("IFC") Performance Standards and the Equator Principles. These standards are the global benchmark for the development of mining projects and complying with them is vital for mining projects, especially those seeking finance from international capital providers.

The Company vision of doing the right things in the right way is translated to effective actions in the ESIA workstreams.  Findings of the baseline investigations have been integrated in the ESIA and the proposed monitoring programmes.  These are planned to be reflected in the final project design in the forthcoming FEED ("Front End Engineering Design") so that positive impacts are maximised and negative impacts are minimised in the construction, operation, and closure stages.

Graham Clarke, CEO of Emmerson, commented:

"We have said that we want to do the right things in the right way, with no exceptions. The ESIA has been done to the highest standard recommended by the World Bank, with no corners cut. It is the culmination of two years of studies and monitoring in the field and is a piece of work that everyone involved can be proud to have delivered.  The environmental and social impact of a new major project is of real importance to any company that concerns itself with maintaining a record of sustainability. We are confident that the results of our work will demonstrate that Khemisset is going to be accepted as an important new potash mine to the benefit of Morocco and the shareholders of Emmerson.  I am grateful to the dedication of all those who were involved in producing this excellent report."

**ENDS**

For further information, please visit  www.emmersonplc.com , follow us on Twitter (@emmerson_plc), or contact:  Graham Clarke Edward McDermott Emmerson plc [phone]  Jerry Keen Toby Gibbs John More Shore Capital [phone]  Damon Heath Isabella Pierre Shard Capital [phone] Megan Denison Susie Geliher St Brides Partners Limited Financial PR/IR [phone]

Notes to Editors

Emmerson's primary focus is on developing the Project located in Northern Morocco.  The Project has a large JORC Resource Estimate (2012) of 537Mt @ 9.24% K ₂ O 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 Feasibility Study released in June 2020 indicated Khemisset has the potential to be among the lowest capital cost development stage potash projects in the world and also, as a result of its location, one of the highest margin projects. This delivered outstanding economics including a post-tax NPV ₁₀  of approximately US$1.4 billion using industry expert, Argus', price forecasts.

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.

 

END

 

 

MSCBPBFTMTIBMLM