The legal dispute between Emmerson and Morocco over the Khemisset potash project will continue for almost two more years, with a full hearing set for July 2028. An arbitration tribunal rejected Morocco’s request in July to split the case into separate stages. The tribunal will now consider jurisdiction issues and the main claims together.
Emmerson’s subsidiaries, Khemisset UK Ltd and Potasse de Khemisset SA, are seeking $1.215bn in compensation. They accuse Morocco of breaching the UK-Morocco bilateral investment treaty.
Morocco is due to submit its main defence and objections to the tribunal’s jurisdiction in January 2027.
Emmerson will then have until October 2027 to respond. Morocco will submit its next response in January 2028.
The main hearing is scheduled for 17-26 July 2028.
Emmerson’s subsidiaries claim that the Khemisset project was unlawfully expropriated. They also allege that they were denied fair and equal treatment, adequate protection and security, and protection from discriminatory measures.
These claims have not been proven. Morocco has yet to submit its detailed defence.
The Khemisset project is located about 90km from Rabat. It has a reported JORC resource of 536.9m tonnes, with a potassium oxide grade of 9.24%.
The planned mine life is 19 years.
The project is designed to produce about 810,000 tonnes of MOP, or Muriate of Potash, each year. It could also produce 1m tonnes of salt annually.
Emmerson estimates that the project would need $525m in capital before production starts.
The company estimates a post-tax net present value of $2.2bn and an internal rate of return of 40%.
The original mine plan faced environmental concerns because of its water use.
The Unified Regional Investment Commission issued an unfavourable environmental opinion, citing high water consumption in an area facing water shortages.
Emmerson later introduced a new process for the project.
The Khemisset Multi-Mineral Process is designed to cut water use by 50% and process-water use by 60% compared with the 2020 feasibility study.
The new system would also remove the need to inject waste brine into deep wells. Instead, process water would be recycled.
The process would also turn brines containing magnesium and iron into slow-release fertilisers such as struvite and vivianite.
The arbitration is registered with the International Centre for Settlement of Investment Disputes under Case No. ARB/25/22.
The case will now move through written submissions before the parties appear before the tribunal in July 2028.
