Morocco loses bid to separate Emmerson arbitration proceedings

The international arbitration dispute between Morocco and Australian mining development company Emmerson has reached a new procedural stage after a tribunal rejected Morocco’s request to have jurisdictional objections examined separately from the merits of the case.

The Emmerson arbitration concerns the Khemisset Potash Project, a major mining venture near Rabat that was intended to produce potash for agricultural fertilizers. Emmerson filed the claim through its Moroccan subsidiary under the United Kingdom-Morocco Bilateral Investment Treaty, arguing that Morocco breached its obligations under the agreement.

According to the company, the dispute arose after Moroccan authorities declined to grant the environmental approval required for the mining permit. The government’s concerns reportedly centered on the project’s water consumption and potential environmental impact.

Emmerson contends that the lack of approval prevented the development of what it describes as one of Africa’s largest undeveloped potash deposits. The company argues that the project could have supplied fertilizer markets across Africa, Europe, and the Americas.

As part of the arbitration proceedings, Morocco requested that the tribunal consider jurisdictional objections as a preliminary issue before addressing the substance of the dispute. The tribunal rejected that request, allowing the case to proceed without separating the jurisdictional phase from the merits.

Emmerson is seeking $1.215 billion in compensation, equivalent to approximately MAD 10.9 billion, for what it describes as losses and damages resulting from Morocco’s alleged violations of treaty obligations.

The case is being heard by the International Centre for Settlement of Investment Disputes (ICSID), the World Bank’s arbitration institution for investment disputes between foreign investors and states. The arbitration is registered under Case No. ARB/25/22.

ICSID records show that the tribunal was constituted in October 2025 and has since conducted its first procedural session, received submissions from the claimants, and reviewed Morocco’s jurisdictional objections.

The latest procedural update indicates that a hearing was held on June 19 by video conference to consider Morocco’s request for a preliminary ruling on jurisdiction. With the tribunal rejecting that request, the proceedings will continue with jurisdictional and substantive issues considered together.

Under the ICSID framework, the registration of an arbitration case marks the formal start of proceedings and does not constitute a judgment on the merits of the claims or the validity of either party’s position.