- Potash development company Emmerson said it had signed a non-binding memorandum of understanding with Voltalia to examine the potential for the provision of electricity to its Khemisset potash project in Northern Morocco.

The agreement could potentially reduce electrical power, and would pose no additional capital costs or operating risk for Emmerson as electricity would be supplied over the Moroccan energy transmission grid, the company said.

The company also said the feasibility study for Khemisset continued to 'progress well and we look forward to releasing key portions of the study as we move towards its completion in the first half of 2020.'

'Given electricity accounts for around a third of Khemisset's cash operating cost, the potential improvement to the Project's already outstanding economics, which includes an average life of mine EBITDA of US$236m per annum, could be extremely meaningful,' said Hayden Locke, CEO of Emmerson.

'Importantly for Emmerson, although the agreement would be for the purchase of electricity from Voltalia, the electricity would be sourced directly from the broader Moroccan energy grid, meaning that in the event that the renewable sources produced less than Khemisset's requirements, the difference could be sourced from non-renewable sources at the Moroccan regulated tariff rate,' Locke added. At 9:27am: [LON:EML] Emmerson Plc share price was +0.1p at 3.5p

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