By: Zawya

Amid the ongoing arbitration process between Morocco and British mining company Emmerson, the former has appointed an arbitrator at the International Centre for Settlement of Investment Disputes (ICSID).

The appointment, officially recorded by ICSID on 15 August, marks an important step forward in the dispute registered under case number ARB/25/22.

The company is seeking full compensation in respect of the Khemisset Potash Project, which it had internally valued at $2.2 billion, after the project was halted.

The dispute stems from Emmerson’s claim that Morocco violated multiple provisions of the bilateral investment treaty between Morocco and the UK, signed in 1990 and enacted in 2002.

Emmerson had previously appointed its own arbitrator whose nomination was registered on 5 August.

The arbitration tribunal now awaits only the appointment of a president, who must be accepted by both parties, before proceedings can formally begin.  This president will play a crucial role in directing discussions and potentially influencing the outcome of the arbitration.

Located approximately 90 kilometres from Rabat, the Khemisset project represented Emmerson’s primary asset. With estimated resources of 311 million tonnes at an average grade of 10.2 percent potassium oxide, the mine was expected to produce over 700,000 tonnes of potash annually for 19 years.

The project was derailed following an unfavourable environmental and social impact assessment issued by the Regional Unified Investment Commission (CRUI) in October 2024. The commission determined that the project’s water consumption was incompatible with local capacities.