Sierra Leone Telegraph: 19 February 2020:
As the economic downturn in Sierra Leone continues to worsen, questions are being asked about the government’s rationale for terminating or suspending mining contracts that have in the last few years, helped in boosting export revenue and GDP, especially as the government is now proving to be unsuccessful in attracting new investors to take over those mines.
Although many of the country’s mining agreements with foreign companies were badly drawn up and in need of serious review, the current government’s decision to terminate or suspend those agreements in an unstable and uncertain global economic climate, is seriously hampering efforts to rebuild the country’s economy and attract new investors. In short, investors are staying away, afraid of losing their investments in Sierra Leone.
This is now being compounded by yesterday’s press statement published by SL Mining, whose mining agreement negotiated with the previous government has been terminated by the new government, for which the company has taken legal action that may well prove to be highly costly to the government and people of Sierra Leone.
“Following the purported cancellation of SL Mining’s Licence, the ICC Arbitral Tribunal issued an order on 25 November 2019, which the Company has described in a Statement dated 27 November 2019. The Government failed to comply with that Order and instead aggravated the dispute with SL Mining.
“The Government’s non-compliance and aggravating misconduct has led the ICC Arbitral Tribunal to issue, at SL Mining’s request, a Peremptory Order on 13 February 2020 in which the Tribunal: Ordered the Government to rescind the purported cancellation of SL Mining’s Licence or otherwise to reinstate it. Declared that the Government failed to comply with the ICC Emergency Arbitrator’s orders dated 30 August 2019, 8 September 2018, 4 October 2019 and 9 October 2019. Declared that the Government failed to comply with the ICC Tribunal’s interim order dated 4 November 2019.
“Ordered that, until ordered otherwise and pending the final resolution of the dispute by the Tribunal: The Government lifts any prohibition on shipping or export of minerals directed at SL Mining; The parties continue to comply with their obligations under clause 6.9(d) of the Large Scale Licence Agreement between the Government of Sierra Leone and SL Mining Limited dated 5 December 2017; The parties refrain from aggravating and take no steps to aggravate the dispute between them.
“The Government shall refrain from: removing, dealing with, or otherwise interfering, directly or via third parties, with SL Mining’s assets, including equipment and stockpiles of iron ore, in relation with SL Mining’s Marampa iron ore project; directly or indirectly operating itself, or allowing third parties to operate, the Marampa Project; taking any steps towards the issuance of a mining licence and/or entry into a mining lease agreement relating to the Marampa Project or any part thereof to and/or with a third party; and otherwise altering the status quo as of immediately before receipt of the letter purportedly cancelling the Licence.
“Declared and ordered that the ICC Emergency Arbitrator’s orders continue in full force. Ordered the Government to comply with the ICC Tribunal’s orders within 8 days of the Peremptory Order,” dsays SL Mining in its statement.
This is the full statement published yesterday by SL Mining:
18 February, 2020 – Lunsar, Sierra Leone and London, UK: SL Mining Limited (“SL Mining” / “the Company”), a wholly owned subsidiary of Gerald International Limited, issues this press release in order to protect its legitimate interests and place third parties on notice. This release relates to the ICC Arbitral Tribunal’s Peremptory Order dated 13 February 2020 and the binding restrictions placed by the Tribunal upon the Government of Sierra Leone (“Government”) in respect of SL Mining’s Marampa Project, assets, stockpiles and equipment.
SL Mining is pursuing legal action, including ICC Arbitration, against the Government of Sierra Leone as a result of the Government’s unlawful conduct and non-compliance with the binding decisions reached in international arbitration. In the Company’s Statement of 8 October 2019, SL Mining confirmed that the Government had, by letter received on 7 October 2019, purported to cancel SL Mining’s Large-Scale Mining Licence No ML 01/2017 relating to the Marampa Project. This purported cancellation was unlawful and invalid and was contrary to the binding orders of the ICC Emergency Arbitrator.
Following the purported cancellation of SL Mining’s Licence, the ICC Arbitral Tribunal issued an order on 25 November 2019, which the Company has described in a Statement dated 27 November 2019. The Government failed to comply with that Order and instead aggravated the dispute with SL Mining. The Government’s non-compliance and aggravating misconduct has led the ICC Arbitral Tribunal to issue, at SL Mining’s request, a Peremptory Order on 13 February 2020 in which the Tribunal:
- Ordered the Government to rescind the purported cancellation of SL Mining’s Licence or otherwise to reinstate it.
- Declared that the Government failed to comply with the ICC Emergency Arbitrator’s orders dated 30 August 2019, 8 September 2018, 4 October 2019 and 9 October 2019.
- Declared that the Government failed to comply with the ICC Tribunal’s interim order dated 4 November 2019.
- Ordered that, until ordered otherwise and pending the final resolution of the dispute by the Tribunal:
- The Government lifts any prohibition on shipping or export of minerals directed at SL Mining;
- The parties continue to comply with their obligations under clause 6.9(d) of the Large Scale Licence Agreement between the Government of Sierra Leone and SL Mining Limited dated 5 December 2017;
- The parties refrain from aggravating and take no steps to aggravate the dispute between them;
- The Government shall refrain from:
- removing, dealing with, or otherwise interfering, directly or via third parties, with SL Mining’s assets, including equipment and stockpiles of iron ore, in relation with SL Mining’s Marampa iron ore project;
- directly or indirectly operating itself, or allowing third parties to operate, the Marampa Project;
- taking any steps towards the issuance of a mining licence and/or entry into a mining lease agreement relating to the Marampa Project or any part thereof to and/or with a third party; and
- otherwise altering the status quo as of immediately before receipt of the letter purportedly cancelling the Licence.
- Declared and ordered that the ICC Emergency Arbitrator’s orders continue in full force.
- Ordered the Government to comply with the ICC Tribunal’s orders within 8 days of the Peremptory Order.
A peremptory order is a final order made by a tribunal specifying a time for compliance. It brings with it a number of adverse legal consequences for the Government. The ICC Tribunal also found that “pursuant to the arbitration agreement between the Parties, as ratified by Parliament, “any decision” of this Tribunal “is final and binding and enforceable” and has “the same force and effect as a judgment of a court of the last resort of the Republic of Sierra Leone or any other appropriate jurisdiction.” SL Mining will not hesitate to take legal action against third parties who infringe its rights in relation to the Marampa Project.
SL Mining is a wholly-owned subsidiary of Gerald International Limited, which is the holding company for all entities in Gerald Group. The Group is one of the world’s leading commodity groups, and the oldest and largest employee-owned metals merchant in the world. SL Mining restarted production at the Marampa Project after 4 years, following earlier failed attempts by other international companies. SL Mining began marketing and shipping premium grade >65% iron ore concentrate to steel mills in China in June and July 2019 from the Marampa Project. (END OF STATEMENT)
But in sharp contrast to the spirit with which commercial agreements and international disputes are resolved through negotiations; and in defiance of the Tribunal’s orders, the government of Sierra Leone through the Attorney General wrote to SL Mining and all of its contractors and principals, informing them of the government’s decision to seize and take control of the assets of SL Mining, if they are not removed from the mining site by the 28th February 2020.
The letter also states: “Please note that no Minerals Ore or other natural resources under this notice shall be deemed to constitute assets belonging to any entity or individual under this notice other than the Republic of Sierra Leone. Any attempt to remove Minerals, Minerals Ore or other natural resources is unlawful and criminal.
“The Republic of Sierra Leone wishes all to know that failure to remove the mining assets by the date of 28th February 2020, the Government of Sierra Leone will impose a charge of 50,000 United States Dollars for each day that the said assets remain on the lands of the Marampa Mines area, depriving the Government of Sierra Leone from productive and gainful use of its mineral resources.
“Also note that, after a further period of two months from the date of this notice, should the mining assets remain on the Marampa Mines area and having incurred the said charges stated above, the Government of Sierra Leone reserves the right to take all necessary action to secure the rights within the Marampa mining area.”
This is the full text of the letter sent by the country’s Attorney General to SL Mining, which today must be giving serious food for thought to anyone wanting to invest in Sierra Leone:
THE GOVERNMENT OF SIERRA LEONE OFFICE OF THE ATTORNEY – GENERA AND MINISTRY OF JUSTICE, 3rd floor, Guma Building, Lamina Sankoh Street, Freetown, Sierra Leone
AGMOJ/LM/M29/1
Timis Corporation (SL) Limited
Cosimo Borreli Walsh – Borreli Walsh
Nitani Perera
SL Mining Limited
Gerald International Limited,
Standard Chartered Bank (SL) Limited
Dear Sirs,
Re: NOTICE TO REMOVE MINING ASSETS FROM THE MARAMPA MINES AREA
I wish to refer to the above subject and to draw your attention to the recent termination of the SL Mining Ltd mining Licences over the Marampa mining area. I also wish to draw your attention to several legal actions which have been instituted (or are threatened) against the Government of Sierra Leone nationally and internationally.
In these actions which several conflicting claims have been made regarding the ownership of the Marampa Mine assets by yourselves of which the government of Sierra Leone is not in the position to authenticate such ownership titles or rights.
The claims have been made severally and jointly by persons known or described as:
1) Timis Corporation (SL) Limited 26 Brook Fields Motor Road, Freetown, Sierra Leone
2) Cosimo Borreli Walsh –Borreli Walsh Level 17, Tower 1 Admiratty Center, 18 Harcourt Road , Hong Kong
3) Nitani Perera 4/F Palm Grove House, Road Town , Tortola, British Virgin Islands
4) SL Mining Limited Brook Fields Motor Road, Freetown, Sierra Leone
5) Gerald International Limited 3rd Floor, 1 Strand, Grand Buildings, Trafaigar Square, London WC 2N 5 HR
6) Standard Chartered Bank ( Representing’ The Banks; Lenders to London mining Limited) Lightfoot Boton Street, Freetown, Sierra Leone.
The Government of Sierra Leone is aware that there are agreements or arrangements between one or more of the above entitles and interests in relation to the competing and/ or consolidated claims to the assets at the Marampa Mines, which the Government of Sierra Leone has guaranteed, endorsed or is a party thereto.
Also, the Government of Sierra Leone cannot identify, verify or certify the authenticity of all the various claims and interests asserted over the assets at the Marampa Mines. And there are also no valid existing mining licences currently held over the Marampa Mines.
The Government of Sierra Leone therefore calls on all the claimants and / or purported owners of the assets (however they may determine their rights thereto, jointly or severally) to remove the mining assets from the land lying in Marampa mines and surrounding areas by the 28th February 2020.
Please note that no Minerals Ore or other natural resources under this notice shall be deemed to constitute assets belonging to any entity or individual under this notice other than the Republic of Sierra Leone. Any attempt to remove Minerals, Minerals Ore or other natural resources is unlawful and criminal.
The Republic of Sierra Leone wishes all to know that failure to remove the mining assets by the date of 28th February 2020, the Government of Sierra Leone will impose a charge of 50,000 United States Dollars for each day that the said assets remain on the lands of the Marampa Mines area, depriving the Government of Sierra Leone from productive and gainful use of its mineral resources.
Also note that, after a further period of two months from the date of this notice, should the mining assets remain on the Marampa Mines area and having incurred the said charges stated above, the Government of Sierra Leone reserves the right to take all necessary action to secure the rights within the Marampa mining area.
By this letter, all claimants of the assets on the Marampa mining lands are advised to act ( jointly or severally , as you so determine by or amongst yourselves to the extent of your interests) to vacate the lands of the Marampa Mines site of all your assets with immediate effect.
You MUST also ensure that all your liabilities to any private entity, or individual occurring out of use of any assets or claims with respect thereto is settled upon removal of the assets.
This Notice herein conveyed, will be published in the Sierra Leone Gazette and in other media outlets for the attention of the general public, and other parties (or their assigns) that may have any interest in the Marampa Mines asset that has not been disclosed to the Government of Sierra Leone.
Yours sincerely
Dr. Priscillia Schwartz – Attorney General and Minister of Justice
Cc:
H.E President, of the Republic of Sierra Leone Dr. Julius Maada Bio
The Hon. Vice President, Dr. Mohamed Juldeh Jalloh
The Hon. Speaker, Sierra Leone Parliament
The Chief Justice, Judiciary of Sierra Leone
The Chief Minister
Statement on ICC Arbitral Tribunal’s Peremptory Order relating to SL Mining’s Marampa Project
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