Emmerson PLC Commencement of ESIA at Khemisset (2394A)
January 20 2020 - 2:00AM
UK Regulatory
TIDMEML
RNS Number : 2394A
Emmerson PLC
20 January 2020
Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining
20 January 2020
Emmerson Plc ("Emmerson" or the "Company")
Important Forward Step in Mine Permitting Process with
Commencement of ESIA at Khemisset
Emmerson Plc, the Moroccan focused potash development company,
is pleased to announce that, following a period of detailed
planning, it has commenced the full Environmental and Social Impact
Assessment ("ESIA") study for its Khemisset Potash Project in
Northern Morocco ("Khemisset" or "the Project"). Khemisset is a
potentially world class potash development, with industry leading,
low, capital cost to production and, as a result of its location,
among the highest margins in the potash industry. This results in
compelling economics including average life of mine EBITDA of over
US$230 million per annum and a post-tax NPV(10) of US$1.14bn
The ESIA is a key component of all future permitting
workstreams, as outlined in the Emmerson's permitting roadmap (See
RNS dated 22 May 2019). The ESIA will be completed in partnership
with Moroccan headquartered firm Phénixa S.A.R.L. ("Phénixa").
Phénixa have been integral in all environmental and social studies
carried out at Khemisset to date.
The ESIA will include multiple studies on the existing area, and
the final report will conclude any forecast impacts from the
Project, and proposed mitigation measures, on:
-- Existing land uses and social settings
-- Flora and fauna
-- Air quality and noise
-- Climate, topography & elevation
-- Surface water and ground water
-- Archaeology, anthropology, and cultural heritage sites
Hayden Locke, CEO of Emmerson, commented:
"The commencement of the full ESIA is a vital step in our
preparation for submitting applications for permits. Once we have a
report detailing all environmental and social impact risks,
alongside our forthcoming Feasibility Study, we will have all
information required to commence discussions in earnest with
Moroccan Authorities.
"The ESIA is also a vital component of discussions with
financiers, many of whom have already expressed approval for our
commitment to complying with international best practice.
"We continue to use local consultants with extensive in-country
experience, who have been involved in some of the largest projects
in Morocco. Phénixa, in particular, has been fantastic in the work
it has completed at Khemisset until now, and we are delighted to
have them involved on an ongoing basis.
"Alongside the ESIA, our Feasibility Study continues to progress
well and is currently ahead of schedule. We look forward to
continuing to keep the market updated with various parts of the
study as we progress towards its final release during the first
half of 2020."
Further Information
The Company has previously completed ESIA baseline studies for
the broader project area (see RNS dated 12 February 2019 and 18
March 2019). These baseline studies will inform areas of further
focus, with immediate workstreams including testing of the selected
site area (see RNS dated 14 January 2019):
-- Site noise and air quality
-- Underground water quality at site
-- Surface water quality at Oued Beht river
-- Analysis of site topography
Emmerson is committed to developing the Khemisset project in
accordance with the highest health, safety and environmental
standards. Therefore, as per all of Emmerson's environmental and
social studies, the ESIA will be 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.
Click on, or paste the following link into your web browser, to
view the associated PDF document with pictures included:
http://www.rns-pdf.londonstockexchange.com/rns/2394A_1-2020-1-19.pdf
For further information,
please visit
www.emmersonplc.com,
follow us on
Twitter (@emmerson_plc),
or contact: Emmerson Plc Tel: +44 (0) 20 7236
Hayden Locke 1177
Edward McDermott
Damon Heath Shard Capital Partners Tel: +44 (0) 20 7186
Isabella Pierre 9950
Isabel de Salis St Brides Partners Ltd Tel: +44 (0) 20 7236
Megan Dennison Financial PR/IR 1177
Notes to Editors
Emmerson's primary focus is on developing the Khemisset Potash
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 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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