Emmerson launches formal dispute with Moroccan government
1st Nov 2024 10:20
(Sharecast News) - Potash development company Emmerson announced on Friday that it has formally notified the Moroccan government of an investment dispute, citing breaches of the 1990 Bilateral Investment Treaty (BIT) between the UK and Morocco.
The AIM-traded firm said it had retained Boies Schiller Flexner as litigation counsel, and was exploring funding options for the dispute.
It claimed the Moroccan government and its agents had violated the BIT, which allows Emmerson to pursue arbitration through the International Centre for the Settlement of Investment Disputes (ICSID).
While the BIT did not require advance notification of arbitration intent, Emmerson said it had extended an offer to Morocco to discuss cash compensation in hopes of reaching an amicable settlement.
If the discussions were unproductive, Emmerson said it planned to initiate arbitration, seeking damages, interest, and associated costs.
The company said it was committed to protecting its rights, and would take further steps as necessary.
"Emmerson has always conducted its business in Morocco to the highest environmental and ethical standards, often well in excess of the local regulatory requirements, adhering strictly to local laws," the board said in its statement.
"The Khemisset Potash Project is one of the most strategically valuable fertiliser assets on the African continent, especially for Morocco, which currently imports significant quantities of potash to its global fertiliser company, OCP.
"With the implementation of its proprietary - and patent pending - KMP design, the company was targeting the production of potash alongside several complementary fertiliser products that would have employed the lowest water usage of any potash mine globally, with the elimination of waste brines entirely, in order to create the world's most environmentally sustainable potash mine."
At 1002 GMT, shares in Emmerson were up 49.16% at 0.62p.
Reporting by Josh White for Sharecast.com.