Emmerson PLC: the project for the largest African potash mine at an impasse

Emmerson PLC: the project for the largest African potash mine at an impasse
Emmerson PLC: the project for the largest African potash mine at an impasse

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In a press release published on October 28, 2024, the mining company Emmerson announced the results of an appeal that it had lodged with the wali of the region of Rabat-Salé-Kénitra regarding its environmental impact study (EIA). In response to this appeal, the CRI of the region indicated that the Unified Regional Investment Commission does not have the authority to review this study again.

For his part, Emmerson underlined, in this press release, the absence of any indication from the CRI as to the remedies likely to be considered. Since the announcement of the unfavorable opinion, Emmerson’s share price has continued its downward trend in the absence of prospects regarding the acceptability of the environmental compliance of its mining project.

Emerson Plc Share Price: July 1 – October 28, 2024

This project is causing considerable controversy due to its potential environmental consequences in the absence of effective treatment solutions. The balance between economic issues and environmental imperatives is particularly delicate in this specific case. The challenges linked to water scarcity and mining waste management make environmental compliance particularly delicate in this agricultural region where the slightest failure could have a disastrous impact on groundwater resources requiring the strictest possible .

For its part, Emmerson affirms that its operating process fully meets environmental standards. In particular, it plans to use treated wastewater from the wastewater treatment plant Khemisset and maximize the production of by-products to reduce mining waste. The residual brines will be dehydrated before being safely contained to prevent any infiltration into groundwater.

Due to the accumulated delays and financial losses suffered, the company undertook a restructuring of its management. The director and non-executive chairman have stepped down. Furthermore, the company has decided to reduce all of its expenses with the exception of those related to essential administrative and regulatory functions. Ultimately, value-added development projects are currently put on hold.

Remember that this process of obtaining environmental compliance was marked by multiple delays. Despite three versions of the impact studies submitted to the CRUI of Rabat-Salé-Kénitrathe last of which was April 2024, no favorable decision has been rendered.

Having exhausted all possible remedies provided for by article 37 of law 47-18 (free appeal to the wali and hierarchical appeal before the Ministerial Steering Commission in March 2024), the British company now has only one avenue of appeal: request a new appeal before the ministerial commission which must rule within a deadline maximum of 30 days.

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Amine Bouwafoud

October 28, 2024 at 12:09 p.m.

Modified October 28, 2024 at 12:17 p.m.

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