Morocco has taken a fresh step in its $2.2 billion legal dispute with British mining company Emmerson Plc after appointing Professor Zachary Douglas KC as its representative in an ongoing arbitration case. The matter is before the International Centre for Settlement of Investment Disputes (ICSID), a global body under the World Bank that handles disagreements between states and foreign investors.
The appointment of Professor Douglas was officially recorded by ICSID on August 15, 2025, and marks another milestone in the high-profile case. Douglas is well known in the legal world as a professor of international public law in Geneva and Rome. With dual Australian and Swiss nationality, he has extensive experience as an arbitrator, lawyer, and expert witness in complex disputes involving states and investors. He has also worked in various international courts where he built a reputation as someone who often defends state interests in arbitration proceedings.
On its own part, Emmerson Plc, which is listed in London, had earlier nominated its own arbitrator, Professor Stanimir A. Alexandrov, a Bulgarian legal expert. His appointment was recorded by ICSID on August 5, 2025. Alexandrov has over three decades of experience in international arbitration, especially in investor-state disputes. He once served as Bulgaria’s Deputy Foreign Minister and is currently the president of the International Council for Commercial Arbitration (ICCA).
The tribunal that will decide the case is not yet complete. According to ICSID rules, a three-member panel is required. With both parties already nominating their arbitrators, the final step is the appointment of a tribunal president, who must be jointly accepted by Morocco and Emmerson Plc. This president will play a central role in guiding the hearings, balancing arguments, and eventually influencing the outcome of the case.
The dispute itself goes back to Emmerson’s multi-billion-dollar investment in Morocco’s Khemisset Potash Project. Located about 90 kilometers from Rabat, the project was considered one of the most significant potash deposits in the world. Reports said the mine had an estimated 311 million tons of resources with an average grade of 10.2% potassium oxide. Industry expectations were that production could reach 700,000 tons of potash annually for at least 19 years. If completed, the mine would have positioned Morocco as a key player in the global fertilizer market, competing with producers in Russia, Canada, and Belarus.
But the project ran into serious trouble after the Regional Unified Investment Commission (CRUI) issued a negative environmental and social impact assessment on October 28, 2024. The commission argued that the mine’s projected water consumption was too high and could not be sustained by local resources. This decision effectively halted the project and forced Emmerson to suspend operations.
Emmerson Plc has since accused Morocco of expropriation, saying that the government’s decision stripped it of its main asset without fair compensation. Backed by the UK-Morocco bilateral investment treaty signed in 1990 and enforced in 2002, the company is demanding $2.2 billion in damages. The British miner has engaged the services of Boies Schiller Flexner (BSF), a well-known American and international law firm, to represent it in the arbitration.
On Morocco’s side, attorney Hicham Naciri has been appointed to coordinate the legal defense. Observers say the choice of Professor Douglas as arbitrator is not accidental. His record shows that he has often taken positions that favor state sovereignty in disputes, even filing dissenting opinions in cases where other arbitrators ruled for investors. This has fueled speculation that Morocco is strategically positioning itself for a stronger defense in the coming hearings.
International analysts point out that the outcome of this case will go beyond just one mining project. It highlights a wider tension between protecting foreign investment and safeguarding local communities through environmental regulations. While investors demand security for their funds, governments are increasingly facing pressure to protect natural resources and prevent environmental damage. In Morocco’s case, water scarcity is a serious issue, especially in agricultural regions where demand is already high.
For Emmerson Plc, the financial stakes are enormous. The Khemisset project was not only its main asset but also the foundation of its long-term growth strategy. The company had already secured financing deals, signed sales agreements, and attracted global partners to buy potash before the sudden halt. A victory at ICSID could restore investor confidence, while a loss may leave the company’s future in doubt.
For Morocco, the case is about protecting its national interests and enforcing environmental rules. A ruling against the country could damage its reputation among international investors, while a victory could strengthen its position as a nation that balances foreign investment with sustainable development.
As the arbitration tribunal awaits the appointment of its president, all eyes are now on the next phase of proceedings. Whatever the outcome, the decision will likely shape the future of Morocco’s mining sector, its foreign investment climate, and the way African countries handle disputes involving natural resources and international investors.
