Emmerson PLC Commencement of ESIA Baseline Studies (6827P)
February 12 2019 - 1:00AM
UK Regulatory
TIDMEML
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
NPV(10) 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: Emmerson Plc Tel: +44 (0) 207 236
Hayden Locke 1177
Edward McDermott
James Biddle Beaumont Cornish Limited Tel: +44 (0) 207 628
Roland Cornish Financial Adviser 3396
Jeremy King Optiva Securities Limited Tel: +44 (0) 3137 1904
Broker
Gaby Jenner St Brides Partners Ltd Tel: +44 (0) 20 7236
Melissa Hancock 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 311.4Mt @ 10.2% 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
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contact rns@lseg.com or visit www.rns.com.
END
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