Commencement of ESIA Baseline Studies

RNS Number : 6827P

Emmerson PLC

12 February 2019

 

Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining

12 February 2019

Emmerson Plc ("Emmerson" or the "Company") 

Commencement of ESIA Baseline Studies enables accelerated development at Khemisset potash project

Emmerson Plc ("Emmerson" or "the Company"), the Moroccan focused potash development company, is pleased to announce that it has commenced the Environmental and Social Impact Assessment ("ESIA") baseline study for its Khemisset Potash Project (''Khemisset" or "the Project").

The Company recently released a Scoping Study which demonstrated that Khemisset has a rare combination of low capital cost to production and among the highest EBITDA margins in the industry. This resulted in outstanding economic metrics, including a post-tax NPV₁₀ of approximately US$1.1bn using industry expert (Argus FMB) price forecasts.

The ESIA baseline study is the initial workstream in the process of delivering a detailed ESIA, the key supporting document that will be delivered to the Ministry of Mines to convert Emmerson's exploration permits ("Permis de Recherche") to a Mining Licence ("Licence d'Exploitation").

Emmerson is committed to developing the Khemisset Project in accordance with the world's highest environmental standards. The ESIA will be structured and executed to adhere to the IFC Performance Standards and the Equator Principles, which act as guidelines for best practice in terms of environmental and stakeholder risk management and are generally required by debt financing institutions to achieve financial close.

Following a rigorous selection process, Moroccan headquartered firm Phénixa S.A.R.L ('Phénixa') has been appointed to manage the baseline study and develop the framework for the ESIA. The scope of work assesses the potential impacts of the Project on various aspects within the project area and include:

·   Land uses, social settings, and habitat types

·   Soil types, flora, and fauna

·   Climate, topography & elevation

·   Surface water, and ground water

·   Archaeology, anthropology, and cultural heritage

Phénixa has a strong track record in the delivery of ESIAs to support approvals under the Moroccan regulatory framework, as well as for international financing requirements for mining projects. It has assisted several large-scale mining and energy projects in Morocco, including managing the ESIA process and the Environmental and Social Monitoring Program for the Achmmach Tin Project, owned by ASX listed Kasbah Resources Ltd.

Hayden Locke, CEO of Emmerson, commented:

"Commencing the environmental baseline studies represents a further development milestone at the Khemmiset project. The ESIA will be the key document underpinning our application for a Mining Licence for the Khemisset Project. 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."

**ENDS**

For further information, please visit www.emmersonplc.com, follow us on Twitter (@emmerson_plc), or contact:  Hayden Locke Emmerson Plc Tel: [phone] Edward McDermott James Biddle Roland Cornish Beaumont Cornish Limited Financial Adviser Tel: [phone] Jeremy King Optiva Securities Limited Broker Tel: [phone] Gaby Jenner Melissa Hancock St Brides Partners Ltd Financial PR/IR Tel: [phone]

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 311.4Mt @ 10.2% K₂O 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.

 

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