Emmerson files arbitration against Morocco over potash project

Published 01/05/2025, 08:14
Emmerson files arbitration against Morocco over potash project

LONDON - Emmerson Plc, a mining company focused on potash development in Morocco, has initiated arbitration proceedings against the Kingdom (TADAWUL:4280) of Morocco, relating to the Khemisset Potash Project. The company has submitted a Request for Arbitration to the International Centre for Settlement of Investment Disputes (ICSID), a branch of the World Bank, alleging breaches by the Moroccan Government of an investment treaty with the UK.

The dispute centers on the alleged expropriation of the Khemisset Project, which Emmerson internally values at $2.2 billion. To fund the legal battle, the company has secured an $11.2 million litigation funding facility confirmed in January 2025. The costs of the arbitration, as well as a significant portion of general and administrative expenses, will be covered by this facility.

Emmerson’s legal advisors, Boies Schiller Flexner (BSF), are currently working on forming the arbitral tribunal and preparing a formal Memorial submission, which is a detailed statement of the case. The arbitration process formally commenced with the lodging of the Request for Arbitration with ICSID, representing the first step in what is expected to be a two-year process. This includes the constitution of the arbitral tribunal, filing of written submissions, and the evidentiary hearing.

Graham Clarke, Managing Director of Emmerson, expressed confidence in the merits of the case and noted the significance of the step taken by lodging the RFA with ICSID. The company plans to provide updates as the case progresses.

The announcement by Emmerson PLC is based on a press release statement and is a development of interest to investors in the mining sector and those following international investment disputes. The outcome of the arbitration could have financial implications for Emmerson and its shareholders, as well as for the broader mining industry in Morocco.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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