An ICC tribunal has found Cameroon breached its obligations to Sundance Re
Australian-headquartered mining company Sundance Reapproximately USD 616 mil<a href="https://absafricatv9491.live-website.com/how-maasai-warriors-became-lion-guardians/” title=”how Maasai warriors became lion guardians”>lion against Cameroon after the companies accused the Central African state of failing to implement a crucial exploitation permit for Sundance’s flagship Mbalam-Nabeba iron ore project
In a statement on 26 July, Sundance said it had been notified of the ICC International Court of Arbitration (ICC)’s final decision, which followed a hearing held in Paris in January 2025.
Since 2006, Sundance has been focused on developing the transboundary Mbalam-Nabeba deposit in Congo and Cameroon into a high-grade iron ore project producing direct-shipping ores. The project was structured as a two-stage development to generate significant economic benefits for the people of Cameroon and Congo and substantial value for Sundance shareholders.
The companies alleged that Cameroon had failed to implement the Mbalam deposit exploitation permit, with Sundance asserting that this licence was deemed to have been awarded to Cam Iron in 2010. The companies were seeking up to USD 5.5 billion in damages.
In August 2022, the country issued a decree which gave the Mbalam permit to Cameroon Mining Company, an entity that Sundance maintained had only been formed some months earlier. The decree was in direct contradiction to an interim binding order handed down by an ICC emergency arbitrator earlier that year that prohibited the permit from being issued to another party.
Failing to comply
Sundance said in its statement: “A tribunal […] has determined that Cameroon breached its legal obligations to Cam Iron SA and Sundance in relation to those companies’ significant investment in the Mbalam-Nabeba iron ore deposit. Further, the tribunal held that Cameroon breached the applicable arbitration agreement by failing to comply with the ICC Emergency Order which had been issued against Cameroon in March 2022.”
Sundance, along with its legal counsel Clifford Chance, and litigation funder Burford Capital, were “pleased with the tribunal’s decision”, which awarded Sundance and Cam Iron damages, interest and costs totalling around USD 616 million.
If Cameroon fails to pay the award voluntarily, Sundance cautioned that a “process will need to be undertaken to enforce the debt”.
In a statement, Burford indicated if the award were paid in full immediately, its slice would sit at more than AUD 250 million (USD 173 million), with all of the return accruing to the funder’s balance sheet. However, it added that the case remains subject to “significant litigation and collection risks, including potential annulment, set-aside or other post-award proceedings, as well as enforcement, collection and collateral litigation in other jurisdictions”.
Congo proceedings
While their dispute with Cameroon resulted in a favourable outcome, Sundance and Congo Iron saw their multibillion-dollar claim against Congo fail before an ICC tribunal in January this year. The tribunal dismissed the companies’ claim that the country unlawfully expropriated the Nabeba mining permit, and its related rights and interests. While Sundance initially claimed damages of approximately USD 8.76 billion, it later indicated damages ranging from USD 1.5 billion to USD 5.7 billion, based on expert reports.
In its decision, the tribunal concluded that Congo had a legitimate basis for revocation of Congo Iron’s permit due to non-development of the project in the period 2016-2018.
At that time, Sundance said it had identified a “number of areas of serious irregularity” in the ICC award that had led to a “substantial injustice to Sundance and Congo Iron”.
In a statement to ALB, Sundance said there was no update yet on the Congo award and any potential appeal.
Last month, the Financial Action Task Force (FATF) singled out Cameroon and South Sudan for failing to meet certain deadlines and not doing enough to address deficiencies in their regimes to combat money laundering, terrorist financing and proliferation financing.
