Sundance Resources has won a major legal victory against Cameroon, with an International Chamber of Commerce tribunal awarding the Australian mining company about $616 million in damages, interest and costs over the stalled Mbalam-Nabeba iron ore project.

Cameroon breached Sundance’s legal rights

Sundance said the tribunal found that Cameroon breached its legal obligations to the company and its subsidiary, Cam Iron SA, over their investment in the Mbalam-Nabeba iron ore deposit, which straddles Cameroon and the Republic of Congo.

The tribunal also found that Cameroon violated an arbitration agreement by failing to comply with an ICC emergency order issued in March 2022 that barred the government from awarding the Mbalam mining permit to another party.

The dispute escalated after Cameroon revoked Sundance’s mining rights and later awarded the Mbalam permit to another developer. Sundance subsequently launched international arbitration seeking compensation.

Mbalam-Nabeba remains a major African iron ore asset

Mbalam-Nabeba is among Africa’s largest undeveloped iron ore deposits and forms the centerpiece of Sundance’s plan to build a global iron ore business. The project spans the Cameroon-Congo border and is designed as an integrated mine, rail and port development.

The company’s victory comes after a setback in January, when a separate tribunal dismissed Sundance’s $8.8 billion damages claim against the Republic of Congo linked to the Nabeba iron ore project.

Sundance faces next test

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 is required to pay the award. If the government does not comply voluntarily, Sundance said it will need to pursue enforcement proceedings.

Sundance Resources is an international iron ore company focused on developing the Mbalam-Nabeba Iron Ore Project in Central West Africa. The company was delisted from the Australian Securities Exchange on Dec. 21, 2020, following the dispute surrounding the project.