An extended legal standoff over Tunisia’s untapped phosphate wealth, is raising fresh concerns within government circles, as a renewed arbitration threat, risks delaying a project that is viewed to be critical to regional economic revival, for a long time now.
As of the month of April 2026, Australian mining firm – PhosCo, is facing a potential new case at the International Chamber of Commerce (ICC), with Tunisian Mining Services (TMS) reportedly seeking third-party financing to pursue arbitration in Paris. The move shows the continuation of a protracted dispute that has lingered since 2017, casting uncertainty over the future of the Chaketma Phosphate Project in northwestern Tunisia.
The root cause of the dispute are competing claims over ownership rights, licensing authority and control of a resource deposit that government planners see as strategically important. Tunisia holds some of the world’s largest phosphate reserves; and officials have repeatedly identified the sector as a cornerstone for job creation, export earnings and regional development, particularly in underserved interior areas, where unemployment remains high.
However, the recurring legal battles have slowed progress on this project. Tunisian Mining Services (TMS) alleges that PhosCo violated joint venture agreements by establishing a separate entity – Himilco Resources, to secure exploration permits in the Gasaat area, licenses that it claims overlap with the original Chaketma concession. PhosCo has strongly rejected these accusations, describing them as unfounded, arguing that persistent legal challenges have obstructed investment and stalled development.
This is not the first time the dispute has reached arbitration. A similar claim filed by TMS in mid-2025, was terminated just months later after fees went unpaid. Highlighting both the financial strain and complexity surrounding the case. Earlier rulings have also gone in PhosCo’s favour, including a decision ordering TMS to pay damages over what was deemed a fraudulent transfer of shares in the joint venture.
In regarding the Tunisian authorities, the implications extend farther than the courtroom. The continued uncertainty over this project, risks undermining investors’ confidence at a time when the government is actively seeking foreign capital, to stabilize public finances and revive key industries. Local communities near the Chaketma site, many of whom have waited years for promised employment opportunities, remain caught in the middle of this dispute.
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