Emmerson PLC Appointment of Metallurgy and Process Consultant (5399Q)
20 February 2019 - 6:00PM
UK Regulatory
TIDMEML
RNS Number : 5399Q
Emmerson PLC
20 February 2019
Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining
20 February 2019
Emmerson Plc moves towards feasibility stage following
appointment of potash processing expert and completion of Scoping
Study review
Emmerson Plc, focused on developing its low capital cost, high
margin potash project in Morocco, is pleased to announce the
appointment of Mr Don Larmour of Global Potash Solutions to advise
on metallurgy and processing.
Mr Larmour will act as a consultant for the Khemisset Potash
Project ("Khemisset" or "the Project") Feasibility Study, which is
expected to commence in the first half of 2019. The appointment of
an expert of Mr Larmour's calibre marks a significant step towards
the construction of the Project.
The appointment of a consultant for the Feasibility Study
follows the results of the Scoping Study, published late last year,
which confirmed that Khemisset has the potential to be among the
lowest capital cost, highest margin potash projects in the world.
As such, its economics are outstanding, with forecasted EBITDA
margins in excess of 60% and a post-tax NPV10 of over US$1.1bn
based on industry expert price forecasts.
Mr Larmour is widely considered to be one of the leading experts
in the crystallisation processing of potash ores owing to his 38
years' experience in potash processing. He spent 28 years with
Potash Corporation of Saskatchewan as its key process engineer,
where he was involved with process and plant design and operations
management.
Mr Larmour's role will be to advise on all aspects of the
upcoming metallurgical test work programme, providing the benefit
of his wealth of knowledge in process flow design, which will be
included in the Feasibility Study.
As part of the appointment process, Mr Larmour conducted a
detailed review of the Scoping Study work completed by Processing
Consultant, Ercosplan. The results of this review included:
-- Reinforcement of the general processing philosophy and methodology selected by Ercosplan
-- Identification of opportunities for simplification and
optimisation of design which have the potential to reduce capital
and operating costs resulting from:
o Less crystallisation stages
o Lower steam energy consumption
-- Potential changes to the brine management strategy to ensure
brine ponds are appropriately sized and to reduce site
environmental waste production
-- Identification of a number of areas for focus in the next,
more detailed, design phase to further de-risk the Project
Hayden Locke, CEO of Emmerson, commented:
"Don is one of the most experienced potash processing experts
globally, with extensive experience in crystallisation plant design
and operation. We are delighted he is available to provide us with
his expertise at this pivotal time for the Company, and his desire
to work on the Khemisset Project reinforces our view that it is a
potentially world class potash project.
"The Scoping Study and the previous work completed by Ercosplan
provides a fantastic basis for us to begin the detailed analytical
process of optimising the process flow sheet for Khemisset and then
testing it in the laboratory.
"Through Don's review, we have successfully identified a number
of areas which require attention to further de-risk the project
and, notably, a number of areas where we believe there is potential
to further reduce our capital and operating costs, especially on
the energy consumption side."
**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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END
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