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Moroccan power infrastructure lowers Khemisset project costs

24th February 2020

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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Potash project developer Emmerson has completed the full cost estimate for the capital expenditure (capex) required to ensure electricity and gas supply at its 100%-owned Khemisset potash project, in northern Morocco.

Khemisset is a potentially world-class potash development with low capital costs and, as a result of its location, among the highest-margin projects in the potash industry, Emmerson said in a release on Monday.

The cost estimate was completed by independent consultant Golder Associates, with the assistance of key local partners as part of the forthcoming feasibility study, which is ahead of schedule.

The study is now expected to be finalised in the early part of the second quarter of this year.

According to Emmerson, the cost estimates have confirmed the potential for significant capital cost savings for the project owing to its proximity to “excellent infrastructure”.

The total budgeted cost for the supply of electricity from the existing electrical infrastructure is about $10.6-million, including a 10% contingency.

Emmerson CEO Hayden Locke commented on the progress and said Morocco had invested heavily in power generation and transmission capacity throughout the country and had developed an “attractive” renewable energy framework.

He pointed out that the project was within close proximity to several very high-voltage powerlines with confirmed capacity for a mine the scale of Khemisset.

“Morocco’s forward-thinking legislation, to promote renewable energy development, provides additional benefits to the project including tariff reductions, while reducing the overall carbon footprint of the mine.”

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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