YAOUNDE, July 27 – Australian mining company Sundance Resources has secured an arbitration award of approximately $616 million against Cameroon after an International Chamber of Commerce (ICC) tribunal ruled that the government breached its legal obligations relating to the company’s investment in the Mbalam-Nabeba iron ore project.
The Perth-based miner said the tribunal found that Cameroon had violated its obligations to both Sundance and its subsidiary, Cam Iron SA, in connection with the development of the Mbalam-Nabeba iron ore deposit, which spans the border between Cameroon and the Republic of Congo.
The Mbalam-Nabeba project is regarded as one of Africa’s largest undeveloped iron ore deposits. However, its development has been delayed by years of legal disputes after Cameroon revoked Sundance’s mining rights and subsequently awarded the Mbalam mining permit to another developer.
Following the revocation, Sundance initiated arbitration proceedings seeking compensation for losses arising from the dispute.
In its statement, the company said the ICC tribunal also concluded that Cameroon breached a prior arbitration agreement by failing to comply with an ICC emergency order issued in March 2022, which prohibited the government from granting the Mbalam mining permit to another party.
The latest ruling follows a setback for Sundance earlier this year. In January, the company lost a separate arbitration case against the Republic of Congo, after a tribunal dismissed its $8.8 billion damages claim relating to the Nabeba section of the cross-border iron ore project.
Cameroon’s Ministry of Mines did not immediately respond to requests for comment on the arbitration award.
Earlier this month, Cameroon’s Minister of Mines said the Mbalam project was among several new mining developments expected to help increase the country’s annual mining revenue to 1 trillion CFA francs (approximately $1.75 billion).
Commenting on the decision, Sundance Resources Chairman David Porter said the company, together with its legal advisers Clifford Chance and litigation funder Burford Capital, welcomed the tribunal’s ruling.
The company noted that while Cameroon is required to pay the arbitration award, enforcement proceedings may be necessary if the government does not comply voluntarily.
The decision represents one of the largest international arbitration awards involving a mining investment dispute in Africa and highlights the legal and investment risks that can arise when large-scale natural resource projects become subject to regulatory and contractual disagreements.
