Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Emmerson Plc expects to start building its $400 million Moroccan potash plant in late 2021 and to start production by the end of 2023, CEO Graham Clarke told Reuters.
The project has a JORC Resource Estimate (2019) of 537Mt @ 9.24% K2O, is expected to be Africa’s largest potash project, and has the potential to be among the world’s lowest capital cost potash projects.
A feasibility study showed it has potential to produce 735,000 tonnes of muriate of potash and 1 million tonnes of de-icing salt per year.
“With the low capital cost and high margins the company will generate, the payback period is three-five years depending on the potash price,” Clarke said in an email to Reuters.
The Khemisset project benefits from low production costs and easy access to main markets for potash, an ingredient in fertiliser production, he added.
A study Emmerson released in August said that once fully operational, the project would create 760 direct jobs.
Emmerson has identified pre-production capital cost savings of over $1.2 billion relative to the average Canadian potash mine development.
(With Files from Reuters)
