Latest news with #EmmersonPlc
Morocco World
01-05-2025
- Business
- Morocco World
Emmerson Plc Claims Expropriation in Arbitration Case Against Morocco Over Potash Project
Rabat – British mining company Emmerson Plc filed a formal request for arbitration on Thursday, May 1, before the International Center for Settlement of Investment Disputes (ICSID), claiming Morocco expropriated its potash project in Khemisset. Potash refers to various mined and manufactured salts that contain potassium. The firm values the halted project at $2.2 billion and seeks full reimbursement, accusing Moroccan authorities of breaching a bilateral investment agreement with the United Kingdom. The legal step follows months of public tension between the company and Moroccan institutions, particularly after the Regional Unified Investment Commission (CRUI) raised environmental concerns. The commission issued an unfavorable opinion on the project's environmental impact, noting its high water consumption, a key factor in a country facing increasing pressure on natural resources. Despite this, Emmerson insists the decision amounts to an unlawful seizure of its investment. The firm said it had explored domestic remedies, but its appeal to the regional governor was dismissed as inadmissible. In preparation for the arbitration, Emmerson secured $11.2 million in funding earlier this year. The firm explained that the funds would cover arbitration-related costs and a significant portion of its administrative expenses. A December fundraising round also brought in £850,000, intended to support legal proceedings and compensate key witnesses in the case. The London-based firm is working with Boies Schiller Flexner (BSF), a law firm known for representing clients in high-profile international disputes. The tribunal has yet to be fully formed, but the proceedings are expected to extend over two years. Emmerson also pointed to support from a group of investors who previously backed GreenX in a case against Poland. The firm described these investors as experienced in arbitration and confident in the strength of Emmerson's legal position. So far, Moroccan authorities have not commented publicly on Emmerson's allegations or the ICSID filing. Tags: Emmerson MoroccoEmmerson plcEmmerson potash
Ya Biladi
01-05-2025
- Business
- Ya Biladi
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.
