[miningmx.com] — FIRST Quantum Minerals said a court had upheld its claim against the cancellation of its Kolwezi tailings project in Democratic Republic of Congo.
Last year, First Quantum’s Congo Mineral Developments Ltd (CMD) unit filed a claim against the Highwinds Group, subsidiaries of Eurasian Natural Resources Corporation PLC, which claimed to hold an interest in the Kolwezi project tailings permit in the African country.
Following the decision by the British Virgin Islands Commercial Court, the case should now proceed to trial at which Highwinds will need to explain its involvement in the unlawful cancellation of First Quantum’s interest in the Kolwezi Project, the company said in a statement.
Highwinds Group has also been ordered to pay CMD’s legal costs and has indicated its intention to appeal the decision, First Quantum said.
First Quantum said when the Kolwezi project was cancelled, it had already invested more than $400m in a plant on site, which was 75% completed. The project was scheduled for commissioning by no later than May 2010.
Eurasian Natural had said on Aug. 20, 2010 that it had purchased 50.5% shares of Camrose Resources, which through its ownership of the Highwinds Group had a 70%interest in the Kolwezi Project.
