Company statement taken from A Results16 Jan 2023 13:54
This is a slice of that information :
KEY EXPECTED DEVELOPMENTS IN 2022
AFRICA
The first of these, though one we cautiously underplayed in our public statements in order not to alert too many potential adversaries, is the expected successful conclusion of our efforts in the Democratic Republic of Congo ("DRC") to obtain recompense for the sale of our interest in a copper-cobalt joint venture. We told you last year that once we discovered what had occurred, we had moved promptly to obtain a freezing order. We later obtained judgment in our favour for 50.1% of the US$5m consideration already paid. This judgment is executory and cannot now be appealed. We obtained a further judgment from the Congolese courts for US$2m for costs and damages. This judgment is being appealed. Finally, in relation to the US$15m consideration not yet paid, we went to arbitration to claim 50.1% of this amount. Our case is of overwhelming strength, and there is a draft award, but up to the time of writing our former partners have not attended a meeting where they would sign the Minutes of the Arbitration.
This playing for time cuts both ways. Parties acting for our former partners were trying to get us to agree to US$2.5m in the arbitration, rather than the US$7.5m to which we are entitled, and the prospect of receiving US$12.5m of the US$15m subject to the arbitration is obviously enticing. But without our signature they too get nothing, and we think we should sign for what the Arbitrators we believe are minded to award, not some much lesser amount. The contract was quite clear, and the principle that foreign investors should not be unjustly deprived of their property is accepted by enough people that we feel confident that we will prevail. This is not only in the interests of justice, but in the interests of the Congo.
Despite recent frustrations - we spent a total of some nine recent weeks in two spells in Kinshasa for the arbitration and in waiting for the result - the year is one that has seen great progress on this front, if not a conclusion.
The relationships we have built may enable us to proceed with a new joint venture, also of substantial value, should we wish. Our willingness to do this depends on our demonstrating to our shareholders and potential partners that investors in the DRC can be treated justly, as they have not always been in the past.
Sign In
Follow the stocks
