Emmerson PLC (AIM:EML) told investors it has submitted a ‘Request for Arbitration’ to the International Centre for Settlement of Investment Disputes.
The claim concerns alleged breaches by the Kingdom of Morocco and its agents under a bilateral investment treaty signed in 1990 and in force since 2002.
The arbitration relates to the Khemisset Potash Project, which Emmerson has internally valued at $2.2 billion. The company is seeking full compensation.
Legal and a significant portion of general and administrative costs are covered by a $11.2 million litigation funding facility confirmed in January 2025.
Emmerson is working with its legal advisors Boies Schiller Flexner, to form the arbitral tribunal and prepare a formal Memorial submission.
"The completion and lodgement of the RFA with ICSID is a significant step and marks the formal commencement of the litigation process,” managing director Graham Clarke said.
He added: “As a group, we remain confident in the merits of this case. We look forward to providing further updates in due course."