Emmerson PLC signs heads of agreement for 100% of production from Khemisset Potash Project
Published by John Williams,
Editorial Assistant
World Fertilizer,
“Strong sales and marketing partners will be fundamental to supporting our eventual discussions with financing partners and we believe our sales partner will provide significant confidence to all potential lending syndicates for the Project.” said Hayden Locke, CEO of Emmerson.
Highlights
- Heads of agreement signed for up to 800 000 t of K60 Muriate of Potash/year over an initial five year period.
- Binding exclusivity period until 30 September 2019 for parties to negotiate commercial terms for binding supply and off-take agreement.
- Counterparty is a leading global fertilizer trading, distribution and marketing company with a significant footprint in the Brazilian market.
- Counterparty has a geographical focus on Brazilian, African and North Western European markets, where Khemisset has transport and logistics advantages.
Locke commented: “The benefit of location has been clearly demonstrated in our Scoping Study and we continue to expect Khemisset to be among the highest margin potash projects in the world, generating outstanding returns for our shareholders.
“Our partner’s footprint in the fast growing Brazilian and more mature North West European markets makes them an ideal partner for Emmerson as we focus on those markets where we would have a strong transport and logistics advantage.
“We believe potash produced in Morocco will be in significant demand for a number of important consuming markets, and this heads of agreement reinforces that belief.
“Signing a heads of agreement is an important step for the company as we commence early engagement with sales and marketing partners for product from the world class Khemisset Potash Project.
“The offtake counterparty is one of the world's leading fertilizer trading, distribution and marketing companies. Importantly for Emmerson, it has a significant footprint in the lucrative Brazilian market, including fertilizer blending facilities, which makes the counterparty an ideal long-term partner for the Khemisset Project.”
Read the article online at: https://www.worldfertilizer.com/project-news/15042019/emmerson-plc-signs-heads-of-agreement-for-100-of-production-from-khemisset-potash-project/
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