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Emmerson PLC, the UK-listed company developing the Khemisset Potash Project in Morocco, has encountered a significant obstacle in its Environmental and Social Impact Assessment (ESIA) process. The company's shares plummeted 75% on Monday, trading at 0.65 pence, following reports of an unfavorable recommendation from Moroccan regulators.
The Khemisset Potash Project is a significant potash development initiative located in Northern Morocco, approximately 90 kilometers east of Rabat. The project aims to develop a low-cost, high-margin potash mine in Morocco to meet global demand for potash, a key fertilizer ingredient, while leveraging its strategic location to efficiently access international markets.
According to MarketWatch, Emmerson has been informed of an unfavorable recommendation by the Regional Investment Commission regarding its updated ESIA approval. The company hasn't received formal notification and is seeking clarification while reviewing appeal options.
Emmerson had submitted an updated ESIA application, incorporating the benefits of the Khemisset Multi-Mineral Process (KMP), to the Centre Régional d'Investissement of Rabat-Salé-Kénitra. This development is unexpected, as Emmerson's board had expressed confidence in obtaining approval. In July, the company reported positive results from initial crop trials at Khemisset.
Stockbroker Panmure Liberum noted that this «perplexing development» is not the final decision from the regional investment authority. They also mentioned that a previous rejection was overturned by a ministerial-level committee.
