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Emmerson signs offtake deals for potash and salt from Khemisset

Published: 02:55 21 Nov 2022 EST

Emmerson PLC -

Emmerson PLC (AIM:EML, OTC:EMSNF) has signed non-binding memoranda of understanding (MOUs) relating to the offtake of potash and salt to be produced at its Khemisset mine in Morocco.

Two memoranda have been signed.

One is with Keytrade AG for the sale of a minimum of 245,000 metric tonnes per year of muriate of potash (MOP) for a period of 10 years.

The other is with Hexagon Group AG for the sale of a minimum of 245,000 metric tonnes per year of MOP and a minimum of 500,000 metric tonnes per year of salt product, both for a period of 10 years.

The MOUs are non-binding and set out the key terms for subsequent formal bankable offtake agreements.

"I am delighted to present our first offtake MOUs to the market as we continue our process of advancing towards construction readiness at Khemisset,” said Graham Clarke, chief executive of Emmerson.

“These MOUs are an important milestone in this process and will account for more than 65% of MOP production and 50% of salt production. Underpinning a significant proportion of future potash and salt sales on a take or pay basis is a strong endorsement for the project, de-risking the development for debt and other financiers. They are also a clear signal of the critical importance of potash in the context of international food security, and we look forward to advancing further negotiations as we continue to lay the foundations for establishing Africa's first commercial potash mine."

Keytrade is a large Swiss-based agri-trader that was first established in 1997. It has substantial experience working with all types of suppliers, distributors, retailers, and end-users across all fertiliser products and is active in more than 115 countries across the globe, with key offices in Zurich, Madrid, Tampa, São Paulo, New Delhi, and Beijing.

Hexagon Group is commodity trading company established in Switzerland in 2018. The company specialises in trading, marketing, and logistics in the area of bulk fertilizers and commodities for a wide range of different industries. Hexagon Group, together with its subsidiaries, has 19 offices worldwide and its core operations in fertilizers are concentrated in Asia, Europe, and the Mediterranean countries. including North Africa.

 

 

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