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Stock Market Wire | 12 April 2021
Pathfinder Minerals estimates $621m hit from Mozambique title dispute
Mining group Pathfinder Minerals said a dispute over the ownership of a mining title in Mozambique could see it incur estimated losses of more than $621.3 million.
The company had in November announced that it had been unable to resolve its dispute with the government over what it claimed was an unlawful transfer of Mining Title 4623C to an unconnected company.
It had previously said that it may seek recourse to a bilateral investment treaty signed between Mozambique and the UK.
On Monday, the company said repeated attempts to engage with Mozambique’s Ministry of Mineral Resources and Energy to limit the damage caused to Pathfinder had been unsuccessful.
Pathfinder Minerals said its solicitors had now written to the minister.
They had, it added, made it clear that ’in the event that Pathfinder refers the matter to the International Centre for Settlement of Investment Disputes ("ICSID") under the treaty, the ICSID tribunal would have the power to order the return of Mining Title 4623C to Pathfinder’s control or to order payment of damages by the government of Mozambique to compensate Pathfinder for its loss.’
Pathfinder said it estimated its losses in connection with the diversion of the licensed areas, including lost profits, to be in excess of $621.3 million.
’Shareholders should be aware that there is no guarantee that this, or any, amount will be recovered, should the company refer the matter to the ICSID,’ it said.