Morocco, Emmerson Advance Toward US$2.2 Billion Arbitration Over Halted Potash Project

Morocco has appointed an arbitrator in its ongoing legal battle with Emmerson (LSE:EML,OTC Pink:EMMRF) under the International Center for Settlement of Investment Disputes (ICSID).

ICSID confirmed on August 15 that Morocco has nominated Professor Zachary Douglas, KC, an international law scholar with Australian and Swiss nationality, as its representative on the tribunal.

British miner Emmerson previously selected Stanimir A. Alexandrov, a Bulgarian national and veteran of investor-state disputes, whose appointment was registered on August 5.

At the heart of the dispute is Emmerson’s Khemisset potash project, located about 90 kilometers northeast of Rabat.

The deposit, with estimated resources of 311 million metric tons at an average grade of 10.2 percent potassium oxide, was expected to produce more than 700,000 metric tons of potash annually over a 19 year mine life.

Emmerson promoted the Khemisset project as one of the lowest-capital-cost developments globally and a potential anchor for Morocco in the international fertilizer market.

However, this vision unraveled when the Regional Unified Investment Commission issued an unfavorable recommendation on its environmental and social impact assessment in October 2024.

The commission concluded that the project’s expected water consumption could not be reconciled with local resources, effectively halting the development. Emmerson called the rejection an unlawful interference with its rights under the 1990 Morocco-UK bilateral investment treaty, which came into force in 2002.

In May, the London-based company filed a formal request for arbitration at ICSID, alleging that Morocco’s actions amount to expropriation and a violation of investor protections.

The miner is now seeking compensation it values at US$2.2 billion — equivalent to the project’s assessed worth.

The firm has also highlighted backing from a group of investors with prior arbitration experience, including involvement in GreenX Metals' (ASX:GRX,LSE:GRX) case against Poland.

Morocco, for its part, has appointed prominent attorney Hicham Naciri as its counsel. With both parties’ nominees now in place, the three member tribunal requires only a jointly accepted president before hearings can begin.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.