Congo Republic signs deal on revoked iron ore licenses with Sangha Mining

Equatorial Resources

13/03/2021 18:09

BRAZZAVILLE, March 13 (Reuters) - Congo Republic on Saturday
has signed two mining conventions with Congo's Sangha Mining to
exploit iron ore on licenses the government withdrew last year
from Australian miners Sundance and Equatorial Resources, and
Nevis-registered Avima.   
   The government of Congo revoked the licenses on Avima;
Badondo, operated by Equatorial Resources  EQX.AX , and Nabeba,
owned by Sundance last year, saying the companies had failed to 
meet their obligations to develop their high-grade iron ore
concessions. The companies deny this.  urn:newsml:reuters.com:*:nL1N2J12MT 
    The government handed the licenses to Sangha Mining
Development Sasu which is registered in the Congolese city of
Pointe Noire. 
    Sangha Mining said on Saturday that it will invest $10
billion to develop the projects.
    "We plan to start work in the fourth quarter 2021, with a
plan to start exporting in 2023 and eventually have an annual
production of over 100 million tonnes of iron ore," Manuel
Andre, the chief executive of Sangha, said at the signing
ceremony on Saturday.
    Sangha is little-known company backed by Chinese investment
which is embarking on its first mining project. Andre did not
comment on how the investment would be financed.  
    Congo's mines minister Pierre Oba said during the ceremony
that the previous operators had failed to bring the projects to
stream a decade after conventions were signed that is why the
licenses were withdrawn.
    Avima Iron Ore Limited said on Thursday it had written to
Congo government demanding it either reinstate its licence or
pay damages of $27 billion, while Sundance, which is seeking
$8.76 billion in damages, is advancing plans to start
international arbitration against Congo.  urn:newsml:reuters.com:*:nL1N2L90UX
 urn:newsml:reuters.com:*:nL1N2KO118            
    "The previous partners have decided to take the case to
court," Oba said, adding that the government had obtained a
one-month truce before the opening of discussions for possible
compensation.

 (Writing by Bate Felix
Editing by Ros Russell)
 ((bate.felix@thomsonreuters.com; +33 1 49 49 55 70   Twitter:
@BateFelix;))