Morocco's Arbitration Challenge Denied
In a significant development concerning international investment disputes, Morocco has recently faced a legal setback regarding its potash project located in Khemisset. An international arbitration tribunal rejected Morocco's request to separately address the objections it raised about the tribunal's jurisdiction in its ongoing dispute with the British mining company, Emmerson. This ruling was disclosed through a company update published on Monday, highlighting the tribunal's decision made on July 17, which mandates that Morocco's objections will be considered simultaneously with the substantive issues of the case.
Emmerson clarified that Morocco submitted this request back in May, with hearings on the matter taking place on June 19, leading to the tribunal's conclusive ruling against the Moroccan government's appeal for a bifurcated procedure. The timeline for the subsequent stages of the arbitration, including the hearings on jurisdiction and the merit of the case, remains unconfirmed. The subsidiaries of Emmerson, namely Khemisset UK Ltd. and Potasse de Khemisset S.A., initiated this arbitration process in April 2025 at the International Centre for Settlement of Investment Disputes (ICSID). They are seeking a staggering $1.215 billion in damages, which includes local taxes and interest, accusing Morocco of violating the bilateral investment treaty between the UK and Morocco through what they describe as the "expropriation" of the Khemisset project. Furthermore, they allege that Morocco has failed to uphold its obligations to provide "fair and equitable treatment," as well as full protection and security for their investment, and has implemented discriminatory measures that adversely affected the investment.
As reported by yabiladi.com.
