The Chinese mining giant Shandong is challenging the cancelation of its mining license by the Sierra Leone government, APA has learnt.
Media reports on Thursday indicate that Shandong has file a suit at the country’s High Court seeking the overturning of the decision by the Ministry of Mines and Mineral Resources that saw it stripped of two licenses for large scale mining and the operation of a railway and port services.
Shandong acquired the licenses through its subsidiary – Shansteel Sierra Leone Limited which operated the Tonkolili Iron Ore project and the African Railway and Ports Services (APRS).
The by-weekly Politico Newspaper cited court documents quoting attorneys of Shandong saying they were seeking a judicial review and nullification of the government’s decision.
The company, which is represented by the law firm Lambert and Partners, are also asking that the costs of and incidental to the action be paid by the respondent.
The case is before the Fast Track Commercial Court and Admiralty Division of the High Court.
Shandong was sanctioned alongside another major iron ore miner, SL Mining, which was slammed with an indefinite suspension for offenses related to failure to meet financial obligations.
The Ministry on Wednesday announced conditions under which the suspension of SLM Mining, a US-owned company, can be reversed.
It include the immediate payment of a US$1million Performance Bond to the government.
SL Mining says it will not accept those terms, describing the move by the ministry as unlawful.
KC/as/APA