Australia’s Sundance Resources said on Monday that an international arbitration tribunal has dismissed its challenge to what the company has described as the unlawful expropriation of its subsidiary Congo Iron’s mining permit in the Sangha region of the Republic of Congo, according to Reuters.
Sundance said the tribunal, seated in London and operating under International Chamber of Commerce rules, ruled that Congo had a valid reason to revoke the permit because the project was not developed within the timeframe allowed between 2016 and 2018. The panel rejected all claims brought by Sundance and Congo Iron.
“Sundance is shocked by this poorly reasoned ICC Award,” non-executive chairman David Porter said in a company statement.
“In our mind, the Tribunal members made fundamental errors and failed to allow us to present our case on issues that, as it turned out, were central to their decision-making process.”
The dispute began after Congo’s government revoked the mining permit held by Sundance’s subsidiary, Congo Iron, in December 2020 and reassigned it to Sangha Mining Development, a subsidiary of China’s Bestway Finance Ltd.
Don’t Miss This:
Congo Deepens US Ties With Formal Shortlist Of Strategic Mineral Assets
Sundance referred the matter to international arbitration in March 2021, seeking $8.8 billion in damages linked to the Mbalam-Nabeba iron ore project, which spans the border between Congo and Cameroon.
The company said it had identified what it described as a “serious irregularity” that resulted in “substantial injustice” and is now seeking to challenge the ruling under the English Arbitration Act 1996. Sundance has asked the High Court in London to set the award aside.
The Republic of Congo did not immediately respond to a request for comment included in the statement.
Sundance also said a decision in a separate but related case against Cameroon is expected in February or March.
“As the Cameroon case is independent of the Congo proceedings and before a separate tribunal, Sundance does not expect the outcome of the Congo proceedings to influence or affect the Cameroon case,” the company said.
Don’t Miss This:
Ivanhoe Mines Launches Africa’s Largest Copper Smelter Online In DR Congo
Image Credit: NS Energy
