10th Dec 2019 14:09
(Alliance News) - Emmerson PLC on Tuesday said it could potentially receive up to USD40 million for Khemisset potash project from Moroccan government incentives.
The potash development company said it has received confirmation that direct cash subsidies and further tax concessions are available to it under a formal investment convention agreed with the Moroccan government for Khemisset project.
The government incentives could contribute up to 10% of the project's total capital expenditure, the company estimated. It said that Khemisset could also be eligible for several additional fiscal concessions and tax breaks, which will enhance its margins.
Emmerson plans to commence negotiations with the Moroccan government for an investment convention after completion of a feasibility study for the project, expected to complete by the end of first half of 2020.
Hayden Locke, chief executive of Emmerson, said: "As we progress in delivering the technical de-risking milestones for Khemisset, we have initiated discussions with Moroccan government bodies to gain an understanding of the policies in place, which will support the project's development. Based on initial discussions, we have concluded that the project is eligible for an investment convention with the Moroccan government; this provides for potential government contributions towards up to 10% of total project capital expenditure in the form of subsidies and additional tax concessions.
"We continue to examine various options to optimise the industry leading capital cost Khemisset potash project's potential as we advance it towards completion of full feasibility, which we are confident will be delivered in the first half of 2020," Locke added.
Emmerson shares in London were up 4.1% at 3.59 pence each on Tuesday afternoon.
By Tapan Panchal; [email protected]
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