Sundance Resources loses arbitration over Congo iron ore permit revocation
Australia's Sundance Resources said on Monday that an arbitration panel had dismissed its challenge to what the mining company has called Congo's unlawful expropriation of subsidiary Congo Iron's mining permit in the country's Sangha region.
Sundance said a tribunal in London, operating under International Chamber of Commerce rules, found Congo had a legitimate basis to revoke the permit because the project was not developed during the period allowed from 2016 to 2018. It dismissed 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."
Congo's government revoked Sundance subsidiary Congo Iron's permit in December 2020 and awarded it to Sangha Mining Development, a subsidiary of China's Bestway Finance Ltd, triggering the dispute.
The company referred a claim to international arbitration in March 2021, seeking $8.8-billion in damages over the Mbalam-Nabeba project, which straddles the border of Congo and Cameroon.
Sundance Resources said it had identified "serious irregularity" leading to "substantial injustice". It is seeking to challenge the decision under the English Arbitration Act 1996 and asked the High Court in London to set it aside.
The Republic of Congo did not immediately respond to a request for comment in the statement.
The company said a decision on a similar 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," it added.
