PhosCo Ltd (PCO) and its subsidiary Celamin Pty Ltd are facing a new challenge from Tunisian Mining Services SARL (TMS), which has initiated a request for ICC arbitration concerning Chaketma Phosphates SA (CPSA). This development follows a history of disputes, with TMS still owing Celamin A$7.2 million in damages from a previous ICC arbitration dating back to 2017. PhosCo has not recorded this as an asset due to TMS’s non-compliance and uncertain solvency.
TMS alleges that Celamin and PhosCo breached obligations under the CPSA Joint Venture Agreement, citing the application for the overlapping Gasaat permit and misuse of governance rights. However, PhosCo vehemently denies these allegations, asserting their baseless nature and pledging a strong defense if the arbitration proceeds. Key points of contention include that PhosCo itself is not a signatory to the CPSA shareholder agreement, and the Gasaat permit is held by Himilco, a separate, wholly owned PhosCo entity.
Celamin formally terminated the CPSA JV on May 14, 2025, due to TMS’s repeated non-performance and ongoing breaches. The company views TMS’s actions as persistent efforts to impede progress, not only at Chaketma but now also at Gasaat. PhosCo intends to take decisive and forceful action to protect its interests. The company had revoked its cross guarantee between PhosCo and Celamin on February 19, 2024. PhosCo’s board of directors has authorized the release of this information to the market, signalling their commitment to transparency and proactive management of this ongoing dispute.
