CEO Interview With Hayden Locke
The Khemisset project is situated in one of the fastest-growing potash consuming countries in the world indicating that there will be strong local demand for the potash product. Morocco is also ideally located to service four key export markets for MOP in the Atlantic corridor including South Africa. The project’s location relative to its target markets will deliver a premium netback price versus many of its peers.
The project has a large JORC Resource Estimate (2012) of 311.4Mt @ 10.2% K2O and significant exploration potential with an accelerated development pathway targeting a low capex, high margin mine. A Scoping Study completed by Golder Associates in November 2018 has confirmed robust economics for Khemisset with a post-tax NPV10 of US$795 million and IRR of 29.8% to produce approximately 800,000 tonnes of K60 MOP per annum during steady-state operations over the initial 20-year mine life. Importantly, Khemisset has demonstrated an incredibly low pre-production capital cost of US$406 million, less than half of its global peer average capital intensity.
Khemisset is ideally located to benefit from the expected high growth in demand for NPK fertilisers on the African Continent. Its location, close to a number of potential export ports, on the doorstep of European, Brazilian and US markets, means that the project will receive a premium netback price relative to many of its peers. The need to feed the world’s rapidly increasing population is driving demand for potash and Emmerson is well placed to take full advantage of the opportunities this presents.
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