(Adds mines ministry no comment, detail, background)
DAKAR, March 11 (Reuters) - Avima Iron Ore Limited said on
Thursday it had written to Congo Republic's government to demand
it either reinstate the company's production licence that was
stripped last November or pay damages of $27 billion.
Avima's iron ore licence was one of three that Congo's
government revoked late last year and handed to a little-known
company backed by Chinese investment called Sangha Mining
Development Sasu.
The government said the companies had failed to meet their
obligations to develop their concessions. The companies deny
this.
One of them, Australia's Sundance Resources, announced in
December it had initiated an arbitration process seeking $8.76
million in damages. Sundance said last week it had delayed
arbitration by 30 days to allow discussions with Congo to
progress.
Avima, which said it had been scheduled to begin production
in the first quarter of 2021, said in a statement it had issued
a letter on Tuesday to Congo's president, prime minister and
mines minister demanding reinstatement of its licence within 30
days or indemnification of a loss it estimated at $27 billion.
The Nevis-registered company said the stripping of its
licence "seems to have been carried out for the personal benefit
of certain Congolese officials and complicit third parties",
without naming them, and threatened arbitration and other legal
proceedings.
"The Congo government's actions are obvious, blatant and
clearly illegal," said Avima representative Socrates Vasiliades.
The company said it is being advised by the law firm
Clifford Chance, which is also representing Sundance.
Urbain Fiacre Opo, a senior official at the mines ministry,
declined to comment.
Congo shipped its first iron ore exports in 2019 from a mine
owned by Congolese billionaire Paul Obambi’s Sapro SA.
Glencore is in a joint venture in Congo to develop
the Zanaga mine.
(Reporting by Aaron Ross; editing by Mark Potter and Jason
Neely)
Glencore (GLEN)
Zanaga Iron (ZIOC)
