Modern Mining February 2021

POTASH

structure in place for Q3 2021. The company will complete site investi- gation works and engineering and detail design during the course of the year, with the target to com- mence early construction works before the end of 2021. Market prospects Commenting on the state of the market, Clarke says the fertiliser market as a whole, and therefore the potash market, is looking good at the moment, showing stronger demand and pricing than in the past 12 months. The increase in demand and price, he says, is being driven by higher crop prices and this is forecast to continue for the remainder of the year. “The demand and pr ice of

potash has been increasing from a low point over the last couple of years and the long-term view is that this will continue to strengthen in the short to medium term. It should be recognised that there is a long-term annual increase in demand for potash of 2 – 3% based on the fundamentals that ever increas- ing quantities of food have to be produced to feed the world’s growing population and the increased application of fertiliser is the only way to achieve this,” says Clarke. He is also encouraged by the host country’s ease of doing business, saying that “Morocco is a great jurisdiction for doing business and developing a project”. The government, he says, is encouraging of foreign investment generally, but also specifically for mining with only a nominal royalty charge in place and a five-year tax holiday once in operation to assist with debt payback. The company, he adds, has built excellent rela- tions with the authorities as a result of good, open communication and has engaged on a local and regional level to ensure there is an understanding of the benefits that the project will bring. In addi- tion, Morocco has a well-developed infrastructure

in terms of the road and power network, and that has helped reduce the capital required for project development. “The Khemisset project is a standout in the pot- ash development space and with the low capex and opex and low risk construction, 2021 will see us continue to make excellent progress,” concludes Clarke. 

The mining licence encompasses the full resource base, allowing simple expansion of the operations in the future without the requirement to re-permit.

Key takeaways  Having submitted its application in Q4 2020, Emmerson Plc has been granted a mining licence for its Khemisset Potash Project by the Moroccan Ministry of Energy, Mines and the Environment  The mining licence covers an area of 558 km² and all of the current mineral resource estimate area, which has a global resource of over 500-million tonnes  Of the mineral resource estimate, only 43% is included in the current 19-year mine life, identified in the feasibility study  Following the granting of the mining licence, the company needs to secure its environmental licence (the application was submitted in Q4 2020 and is currently going through the formal process) which is expected in the first half of the year

February 2021  MODERN MINING  15