Sundance seeks $8.8 bln in damages over Congo iron ore project (updated)
21/12/2020 13:39
(Writes through)
DAKAR, Dec 21 (Reuters) - Australian miner Sundance
Resources SDL.AX said on Monday that it had initiated an
arbitration process against Congo Republic for damages of $8.76
billion after the Congolese government revoked its permit for
the Nabeba iron ore project.
The Nabeba permit is part of Sundance's flagship
Mbalam-Nabeba project, which straddles the border of Congo and
Cameroon. It has yet to begin extracting iron ore.
A decree by President Sassou Nguesso published on Dec. 17 in
Congo's official gazette confirmed the permit had been withdrawn
for "prolonged insufficiency of exploitation manifestly contrary
to the potential of the deposit" and a failure to pay royalties.
Another presidential decree awarded the permit to Sangha
Mining Development Sasu, headquartered in the Congolese city of
Pointe Noire. It was not clear who owns Sangha Mining.
A Sundance spokesman was not immediately available to
respond to the government's charges, but the company said in a
statement that it had formally initiated the arbitration process
on Dec. 15.
The revocation of its permit was "breathtaking in its size
and audacity and in contempt of Congo’s mining laws", Sundance
said.
Congo's government spokesman was not immediately available
for comment.
Under the arbitration process the two parties have 54 more
days to first negotiate a settlement, but Sundance said that
would only happen if the government agreed to pay substantial
damages.
Sundance is also in a dispute over its permit in Cameroon,
with the company saying the government there has failed to issue
a permit the company needs to extract from the site.
(Reporting by Aaron Ross; Editing by Susan Fenton)
((Reuters.Briefs@thomsonreuters.com;))