Emmerson PLC has reported a bigger loss as the cost of its legal fight over the Khemisset potash project in Morocco continues to rise. The British-listed mining company made a pre-tax loss of $1.8m in the first six months of 2026, compared with $1.3m during the same period last year.
Legal and professional costs more than doubled to $2.3m, up from $1m a year earlier. The costs are linked to international arbitration proceedings that Emmerson has brought against the Kingdom of Morocco.
The company is seeking about $1.215bn in compensation, equal to around 11bn Moroccan dirhams. The case is being heard by the International Centre for Settlement of Investment Disputes (ICSID) under investment treaty rules.
The dispute centres on the Khemisset Potash Project. Emmerson had planned to develop the project into a major potash mine and a large producer of fertiliser for agricultural markets.
The project ran into problems over environmental approval, particularly concerns about water use in the area. The environmental permit needed for the project was rejected, leading Emmerson to start the arbitration case.
The case, registered as ICSID Case No. ARB/25/22, is now expected to run for several more years.
The Kingdom of Morocco must submit its statement of defence in January 2027. The document will include its arguments, objections to the tribunal’s jurisdiction and supporting evidence.
Emmerson will then have until October 2027 to submit its reply and any further evidence. Morocco must file its rejoinder in January 2028.
The main hearing is scheduled for 17-26 July 2028.
The tribunal rejected a Moroccan request in June 2026 to separate questions about its jurisdiction from the main case. Jurisdiction and the substance of the dispute will therefore be considered together.
The arbitration is putting further pressure on Emmerson’s finances. The company has no operating revenue because the Khemisset project remains in the pre-development stage.
Emmerson had $443,000 in cash and cash equivalents at 30 June 2026. It also had net liabilities of $1.101m and unpaid legal costs of $1.252m.
The company has an $11m litigation funding facility to pay for the arbitration.
Emmerson’s other income increased to $1.6m in the first half of 2026, from $727,000 a year earlier. That increase was not enough to cover the higher legal costs.
The company has spent years trying to develop Khemisset as a low-cost, high-margin potash project. The mine was expected to help supply fertiliser to agricultural markets in Africa and beyond.
Environmental concerns over water extraction became a major obstacle to the project. The dispute has since shifted the company’s focus from developing the mine to pursuing compensation through arbitration.
Emmerson also received a patent from the UK Intellectual Property Office in June 2026 for its Khemisset Multi-mineral Process (KMP), the technology developed to process minerals from the project. The patent is numbered 2634094.
ICSID, part of the World Bank Group, deals with investment disputes between international investors and states. The Emmerson case remains pending.
