Summary:

On 15 August 2025, the International Centre for Settlement of Investment Disputes (ICSID) reported that Morocco had nominated Professor Zachary Douglas, an international law scholar holding Australian and Swiss nationality, as its representative on the tribunal in its ongoing legal battle with British mining firm Emmerson. 

The dispute centers on Emmerson PLC’s Khemisset Potash Project, a significant mining development located approximately 90 kilometers northeast of Rabat. Potash is used to produce potassium oxide which is common in fertilizers as well as other industrial applications. The project, with estimated resources of 311 million metric tons at an average grade of 10.2% potassium oxide, was projected to produce over 700,000 metric tons of potash annually over an anticipated 19-year operational period.  

However, in October 2024, the Regional Unified Investment Commission issued an unfavorable recommendation on the project’s environmental and social impact assessment, citing concerns over water consumption and incompatibility with local resources. This decision effectively halted the project’s development. 

In response, Emmerson filed a Request for Arbitration (RFA) with ICSID in May 2025. The company alleges that Morocco’s actions constitute expropriation and violate provisions of the 1990 Morocco-UK Bilateral Investment Treaty (BIT), which entered into force in 2002. Emmerson is seeking compensation valued at $2.2 billion, equivalent to the project’s assessed worth.

Outlook: 

Given the size of the claim and the strategic significance of the Khemisset Potash Project, the case is expected to attract considerable attention from international investors in the mining sector. Other potential investors in Morocco’s extractives sector will be watching closely the outcome of the arbitration. 

The tribunal’s decision could establish an important precedent for Morocco’s approach to foreign investment disputes, shaping investor confidence and influencing the regulatory and operational environment for future projects.  

The outcome will also have broader implications for Morocco’s investment climate and its ability to attract large-scale mining and resource development projects. The resolution of the dispute is likely to take several years, contingent on procedural complexities, the presentation and evaluation of evidence, and any negotiations or settlement discussions that may arise during the arbitration process. 

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