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Marrakech – Amid the ongoing arbitration process between Morocco and British mining company Emmerson Plc (Khemisset UK Limited and Potasse de Khemisset S.A.), the country has appointed Professor Zachary Douglas KC as its arbitrator at the International Center for Settlement of Investment Disputes (ICSID).
The appointment, officially recorded by ICSID on August 15, marks an important step forward in the dispute registered under case number ARB/25/22.
Douglas, who holds both Australian and Swiss nationality, is a professor of international public law at Geneva and Rome, with substantial experience before international courts as an arbitrator, lawyer, and expert witness.
Emmerson had previously appointed its own arbitrator, Bulgarian national Stanimir A. Alexandrov, whose nomination was registered on August 5.
Alexandrov brings 30 years of experience in international commercial arbitration, particularly in investor-state disputes, and is the current president of the International Council for Commercial Arbitration (ICCA). He previously served as Bulgaria’s Deputy Foreign Minister.
The arbitration tribunal now awaits only the appointment of a president, who must be accepted by both parties, before proceedings can formally begin. This president will play a crucial role in directing discussions and potentially influencing the outcome of the arbitration.
The dispute stems from Emmerson’s claim that Morocco violated multiple provisions of the bilateral investment treaty between Morocco and the United Kingdom, signed in 1990 and enacted in 2002. The company is seeking full compensation for what it values at $2.2 billion after its Khemisset potash project was halted.
Located approximately 90 kilometers from Rabat, the Khemisset project represented Emmerson’s primary asset.
With estimated resources of 311 million tons at an average grade of 10.2% potassium oxide, the mine was expected to produce over 700,000 tons of potash annually for 19 years. This would have positioned Morocco as a major player in the global potash market.
The project was derailed following an unfavorable environmental and social impact assessment issued by the Regional Unified Investment Commission (CRUI) on October 28, 2024. The commission determined that the project’s projected water consumption was incompatible with local capacities.
Emmerson, represented by law firm Boies Schiller Flexner (BSF), views this decision as an unjustified eviction from its investment and is pursuing arbitration under the provisions of the bilateral treaty, which allows for private arbitration in case of disputes. The Moroccan government has appointed attorney Hicham Naciri as its representative in the proceedings.
Observers in international arbitration circles note that Morocco’s choice of Douglas may be strategic, as he is described as a “typical state defender” who has “ruled massively in favor of the state” in previous cases. Even when tribunals have ruled in favor of investors by majority, Douglas has reportedly filed dissenting opinions.
As both parties await the appointment of the tribunal president, this case brings to light the tensions between foreign investment protection and environmental concerns in resource development projects in Morocco.
