Vancouver’s First Quantum Minerals Ltd. (TSX:FM) said Wednesday morning that an international tribunal has ruled the Democratic Republic of Congo (DRC) and its state-owned mining company cannot enforce a March 10 decision by the DRC Court of Appeal against two of First Quantum’s Congolese subsidiaries.
That Court of Appeal decision included payment of US$12 billion in damages.
According to First Quantum, the tribunal ruling means the DRC cannot liquidate First Quantum’s assets in the country to pay damages.
The DRC have been in a dispute with First Quantum over the Frontier and Kolwezi mining projects for years.
Arbitration regarding the battle over the Kolwezi project is scheduled for early 2012.
“Reported statements suggesting the DRC has won the case or now has a right to transfer the Kolwezi assets are completely without foundation,” First Quantum said in a release.
Clive Newall, president of First Quantum, said, “The tribunal’s ruling on interim orders is a significant development for First Quantum because it upholds the previous decision that the US$12 billion damages judgment cannot be enforced by the DRC or [state-owned] Gecamines.
“Whilst we believe this is an important step forward, it is important to be clear that the merits of the arbitration itself will not be heard by the tribunal for some time.”
The tribunal has directed the parties not to engage in a media campaign with respect to the arbitration.
First Quantum’s share price range during the past week: between $81.33 and $86.65; 52-week high: $100.32; 52-week low: $48.20.