(Ecofin Agency) - For several years, Emmerson has focused on the Khemisset potash project in Morocco, with plans to produce more than 700,000 tonnes of potash each year over a lifespan of 19 years. However, since 2023, the company has struggled to obtain the necessary environmental permit to build the mine.

Emmerson has been working on the Khemisset potash project in Morocco for several years, aiming to produce over 700,000 tonnes of potash annually for 19 years. However, since 2023, the company has struggled to obtain the necessary environmental permit to build the mine.

On October 28, Emmerson confirmed that Moroccan authorities issued an unfavorable recommendation regarding the continuation of its potash mining project. The company stated that it has not appealed this decision and is currently exploring its options.

Earlier in October, Emmerson announced that the Unified Regional Investment Commission (CRUI) rejected its Environmental and Social Impact Assessment (ESIA). This rejection followed a denial in 2023, citing concerns about high water consumption during a prolonged drought in Morocco. The World Bank warns that Morocco's annual water supply could drop below 500 m³ per person by 2030, indicating a severe scarcity.

Despite Emmerson's efforts to reduce water consumption by 50% in its revised ESIA, authorities were not convinced. The company has not disclosed its next steps. Khemisset is Emmerson's only mining asset, and its shares fell by 50% on the London Stock Exchange on Monday, with a more than 80% decline over the past month.

Due to difficulties in securing permits, which limit financing options, Emmerson has decided to downsize its Board of Directors and cut expenses. Non-executive chairman James Kelly and director Rupert Joy will leave the board immediately. The remaining directors will receive their compensation in shares instead of cash, while CEO Graham Clarke's cash salary will be reduced by 40%.

According to Emmerson's projections, Khemisset can produce over 700,000 tonnes of muriate of potash each year for 19 years.

Emiliano Tossou