On 27 June 2021, Sundance Resources announced it would consider the need to take further legal action following the announcement that AustSino Resources Group had signed an MOU with Bestway Finance and the Government of Cameroon for the construction and operation of infrastructure, including a railway from the Mbalam iron ore mine to the port of Kribi and a multi-modal mineral harbour.
As Sundance disclosed at the time, the Company and AustSino had partnered for two years to work together on the development of the Mbalam-Nabeba Iron Ore Project, which included the development of Mbalam in Cameroon and the Nabeba mine in the Republic of the Congo as well as the required rail and port infrastructure to deliver iron ore onto ships at Kiribi.
As part of this partnership agreement and in good faith, Sundance introduced AustSino and several of AustSino’s Chinese industry partners to authorities in Cameroon and Congo.
Sundance has serious concerns regarding the conduct of AustSino and AustSino’s Executive Chairman, Chun Ming Ding, in the period leading up to and following the unlawful expropriation of Sundance’s iron ore assets by Congo in late November 2020.
Sundance wishes to commence proceedings against AustSino and Ding. However, the Directors of Sundance do not have all of the information they require to determine whether or not to institute these proceedings against AustSino and Ding or what cause or causes of action are available to Sundance in any such proceedings.
Accordingly, following a period of investigation, Sundance has applied for Pre-Action Discovery against AustSino and Ding in the Supreme Court of Western Australia.
In the meantime, Sundance is progressing its arbitration against Cameroon at the International Chamber of Commerce in Paris and its arbitration against Congo at the International Chamber of Commerce in London.