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Morocco will soon launch a project to build a potash plant to exploit massive resources in its Northern Khemisset province, a newspaper reported on Monday.
The Energy and Sustainable Development Ministry will soon issue an environment permit for the project, which will be executed by the UK-headquartered Emmerson Company, the Arabic language daily Hespress said.
“The project will shortly obtain the required environmental approval from the competent authorities in Morocco…this is a crucial stage which is required to kick off this strategic project,” the paper said, citing Ministry sources.
In a recent statement Emmerson said the large reserves in that region showed the plant has the potential to be a world class, low capital cost, high margin potash mine, which is a “very rare asset in the industry.”
It said the project would produce around 810,000 tonnes of potash annually and could yield nearly $1.4 billion in net revenue over its 19-year mine life.
Khemisset is ideally located to benefit from the expected high growth in demand for fertilisers on the African Continent, the Company said. Its proximity to 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 feasibility study was completed by Golder Associates.
In February 2023, Emmerson had announced on its website the appointment of a syndicate of four international and Moroccan banks as initial mandated lead arrangers (MLAs) to co-ordinate and fund a $310 million dual-tranche project financing for the project.
(Writing by Nadim Kawach; Editing by Anoop Menon)
