Emmerson launches arbitration against Morocco over potash dispute

Morocco faces international arbitration as the British mining company Emmerson PLC escalates its dispute over the Khemisset potash project. The company announced on December 6, 2024, its intention to file a case with the International Centre for Settlement of Investment Disputes (ICSID) following a setback related to the environmental assessment.

According to the company's official statement, the dispute emerged after Morocco's Regional Unified Investment Commission (CRUI) rejected the project's environmental impact assessment, citing concerns over excessive water consumption. The Moroccan authorities have not responded to Emmerson's initial dispute notice, prompting the company to pursue legal action.

To finance the arbitration proceedings, Emmerson has secured £850,000 (approximately 10.7 million dirhams) and retained the law firm Boies Schiller Flexner. The company's chairman, Hayden Locke, emphasized the lack of engagement from the Moroccan government as a key factor in their decision to seek arbitration.

The Khemisset project, located in northern Morocco, holds significant potential with a JORC Resource Estimate of 311.4 Mt at 10.2% K₂O. The site's strategic location was intended to serve both African and European markets, positioning it as a premium potash producer in the region. The company's initial scoping study from November 2018 indicated that Khemisset could be among the lowest capital cost development-stage potash projects globally.