has begun an Environmental and Social Impact Assessment (ESIA) baseline study for its Khemisset Potash Project in northern Morocco.
This news follows a scoping study released late last year which evidenced that an essential feature of the Khemisset project is its “rare” combination of low capital cost to production, with post-tax cash flow projected to be $184 million per annum, and high EBITDA margins, calculated to be over 60%.
These numbers become all the more striking when considering that they also are based on the fairly conservative assumptions that current potash prices remain flat.
The ESIA baseline study is the first step in generating a detailed ESIA which would serve as the essential document for the Ministry of Mines to convert Emmersons exploration permits to a mining licence.
The company will be conducting this study along the IFC Performance Standards and the Equator Principles, which are the guidelines for “best practice in terms of environmental and stakeholder risk management.”
Emmerson has chosen Phénixa S.A.R.L, an environmental engineering firm headquartered in Morocco, to manage the baseline study. The scope of the study will include the potential impact of the Khemisset project on areas such as land uses, habitat types and climate.
Hayden Locke, CEO of Emmerson, commented on the announcement:
“We are using local consultants with extensive in country experience, having been involved in some of the largest projects in Morocco including recently delivering an ESIA and Environmental and Social Monitoring programs to support an application for a Mining Licence.
The outstanding results of the Scoping Study for Khemisset confirmed that Emmerson controls a potentially world-class development stage potash asset and has provided us with the confidence to commence the ESIA process now to ensure our accelerated development timeline remains achievable."
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