PhosCo Ltd faces a new arbitration request from Tunisian Mining Services over joint venture disputes, while seeking to recover $7.2 million in unpaid damages dating back to 2017.
- Tunisian Mining Services initiates ICC arbitration against PhosCo and Celamin
- PhosCo denies breach allegations and highlights non-signatory status
- Celamin terminated the Chaketma JV due to TMS’s repeated breaches
- TMS owes $7.2 million in unpaid arbitration damages since 2017
- PhosCo prepares to defend vigorously and enforce outstanding claims
Background of the Dispute
PhosCo Ltd and its subsidiary Celamin Pty Ltd have been thrust into a fresh legal confrontation following a purported arbitration request from Tunisian Mining Services SARL (TMS). The dispute centers on the Chaketma Phosphates joint venture, a key project in Tunisia's phosphate mining sector. TMS alleges that PhosCo and Celamin breached their joint venture agreement, citing issues such as overlapping permit applications and misuse of governance rights.
However, PhosCo has firmly rejected these claims, emphasizing that it is not a signatory to the Chaketma Phosphates SA shareholder agreement. The company also points out that the contested Gasaat permit is held by Himilco, a separate entity wholly owned by PhosCo, distancing itself from the allegations.
Unpaid Damages and Termination of JV
Adding complexity to the situation, TMS has outstanding unpaid arbitration damages amounting to AUD 7.2 million (TND 14.1 million) from a previous ICC arbitration ruling dating back to 2017. PhosCo has not recorded this asset on its books due to concerns over TMS’s solvency and compliance but remains intent on enforcing its rights.
In a decisive move, Celamin formally terminated the Chaketma joint venture on 14 May 2025, citing TMS’s repeated non-performance and ongoing breaches. This termination underscores the deteriorating relationship and operational challenges within the partnership.
Next Steps and Market Implications
The ICC Secretariat has yet to confirm the validity of TMS’s arbitration request, leaving the timeline and outcome uncertain. Should the arbitration proceed, PhosCo plans to seek recovery of the unpaid damages before engaging with the new claims. The revocation of the cross guarantee between PhosCo and Celamin earlier this year further complicates the legal landscape.
PhosCo’s management, led by Managing Director Taz Aldaoud, has signaled a strong and forceful defense against what it describes as baseless allegations. The company’s stance reflects a broader strategy to protect its interests in Tunisia and maintain investor confidence amid ongoing disputes.
Investors will be watching closely as this arbitration saga unfolds, given its potential financial and operational impacts on PhosCo’s Tunisian phosphate ventures.
Bottom Line?
PhosCo’s next moves in arbitration and enforcement will be pivotal for its Tunisian operations and investor confidence.
Questions in the middle?
- Will the ICC Secretariat validate TMS’s arbitration request and when?
- How enforceable are the $7.2 million unpaid damages given TMS’s solvency concerns?
- What impact will the JV termination have on PhosCo’s future projects in Tunisia?