Sundance Resources says it has won $616m Cameroon arbitration over iron-ore project
DAKAR - Sundance Resources has won an International Chamber of Commerce arbitration against Cameroon, with a tribunal awarding the Australian miner about $616-million in damages, interest and costs over a stalled iron-ore project, the company has said.
The Perth-based miner said the tribunal found that Cameroon had breached its legal obligations to Sundance and its subsidiary Cam Iron SA in relation to their investment in the Mbalam-Nabeba iron-ore deposit, which straddles the border between Cameroon and the Republic of Congo.
The Mbalam-Nabeba project, one of Africa's largest undeveloped iron-ore deposits, became mired in disputes after Cameroon revoked Sundance's mining rights and later awarded the Mbalam permit to another developer.
Sundance subsequently launched arbitration proceedings, seeking compensation for losses.
The company lost a separate arbitration case concerning the same deposit against the Republic of Congo in January, when a tribunal dismissed its $8.8-billion damages claim linked to the Nabeba iron-ore project.
In a statement on Sunday, Sundance said the tribunal had also ruled that Cameroon violated an arbitration agreement by failing to comply with an ICC emergency order issued in March 2022 that barred it from granting the Mbalam mining permit to another party.
Cameroon's mines ministry did not immediately respond to a request for comment.
Its mines minister said in July that Mbalam was among new projects expected to boost annual mining revenue to one-trillion CFA francs ($1.75-billion).
Sundance Chairman David Porter said the company, its legal advisers Clifford Chance and litigation funder Burford Capital were pleased with the tribunal's decision.
Cameroon would be required to pay the award, but if the government does not comply voluntarily, Sundance would need to pursue enforcement proceedings, the company said.
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