JOHANNESBURG - Australia's Sundance Resources said on Thursday it was advancing its plans to start international arbitration proceedings against Republic of Congo after the African country cancelled its Nabeba iron ore project in December.
Sundance, which delisted from the Australian Stock Exchange on December 21, said arbitration proceedings would be conducted under International Chamber of Commerce rules, before a tribunal of three arbitrators in London.
A presidential decree issued on December 17 said Sundance's permit had been withdrawn for "prolonged insufficiency of exploitation manifestly contrary to the potential of the deposit" and a failure to pay royalties.
Sundance issued a notice of dispute to the Republic of Congo government in mid-December, after which a 60-day period of negotiation was given for under Congolese law. That period expired on February 15.
"Congo Iron will seek the payment by Congo of fair compensation for the expropriation of the mining permit and damages for other breaches of the Convention and the applicable law," Sundance said.
The company, which said in December it would seek damages of $8.76-billion, said it would be represented by Clifford Chance.
A government spokesman could not immediately be reached for comment.