• Emmerson devalues Khemisset potash project by $21.1 million due to legal dispute
• Environmental permit rejected twice over water use concerns amid severe drought
• The project’s future remains uncertain as arbitration proceedings move forward

British mining company Emmerson Plc has slashed the value of its Khemisset potash project in Morocco by $21.1 million, citing ongoing legal issues with Moroccan authorities over environmental permits. The figure, revealed in the company’s latest annual report, reflects the financial impact of the dispute on a project with a net present value (NPV) of $2.2 billion.

Development at Khemisset has been stalled since 2023, after Emmerson failed twice to secure the necessary environmental permits. Moroccan officials rejected the project over concerns about water consumption, which they argue is unsustainable given the country’s ongoing drought since 2019 that has led to severe water shortages.

In its second application, Emmerson proposed using the Khemisset Multi-Mineral Process (KMP), a method designed to cut water use by about 50%. However, Moroccan authorities still found the proposed measures insufficient.

The company has since filed for arbitration with the International Centre for Settlement of Investment Disputes (ICSID), seeking full compensation for the stalled project.

Emmerson plans to push the arbitration process forward in 2025, but the future of the Khemisset mine remains unclear. Moroccan officials have yet to comment publicly on the dispute or set clear standards regarding acceptable water use for mining projects.

The Khemisset mine is designed to produce 810,000 tons of muriate of potash (MoP) per year over an initial 19-year lifespan.