Emmerson seeks $2.2 billion in arbitration against Morocco over potash project
Emmerson Plc, a Moroccan-focused potash development company, has filed a Request for Arbitration (RFA) seeking $2.2 billion in compensation from the Kingdom of Morocco, claiming «expropriation» of its Khemisset Potash Project.
The British company submitted the case to the International Centre for Settlement of Investment Disputes (ICSID), an arm of the World Bank, citing breaches by the Moroccan government and its agents of the UK-Morocco bilateral investment treaty (BIT) signed in 1990 and in force since 2002.
«The completion and lodgement of the RFA with ICSID is a significant step and marks the formal commencement of the litigation process», said Emmerson Managing Director Graham Clarke in a May 1st press release announcing the step.
The RFA sets out the general background and outlines Emmerson's claim, which is based on what it says is Morocco's unlawful expropriation of the $2.2 billion-valued project. Legal counsel Boies Schiller Flexner (BSF) is now working on forming the arbitral tribunal and preparing a formal Memorial submission, which will include a substantiated damages figure, reads the same statement.
All legal costs and a significant portion of the company's general and administrative expenses are being covered through an $11.2 million litigation funding facility confirmed in January 2025. The arbitration process, including the constitution of the tribunal, filing of submissions, and the evidentiary hearing, is expected to take around two years.
It is worth noting that in December 2024, Emmerson announced its intention to file a case with ICSID after Morocco's Regional Unified Investment Commission (CRUI) rejected the project's environmental impact assessment, citing concerns over excessive water consumption. The Moroccan authorities did not respond to Emmerson's initial notice of dispute, prompting the company to pursue legal action, it said at the time.
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