Brick Court and Clyde & Co LLP represent Carnegie Minerals (Gambia) Ltd in successful ICSID claim against The Gambia

04/08/15

An ICSID tribunal, comprising Jean Kalicki, Philippe Pinsolle and Donald Donovan (President) has issued an award requiring The Gambia to pay approximately AUD$31 million inclusive of damages, costs and interest to Carnegie, a subsidiary of ASX listed Astron Corporation Limited.  The award followed the tribunal’s earlier decision, in Carnegie's  favour, on issues concerning jurisdiction, admissibility, Carnegie’s claim, the Gambia’s counter-claim and certain damages issues in September last year.

The ICSID proceedings concerned Carnegie’s right to mine zircon, ilmenite and rutile in The Gambia following the Gambian government’s termination of the company’s mining licence, seizure of the company’s mining assets and the imprisonment of its mine manager, Mr Charlie Northfield, who was accused of illegally mining for titanium, iron ore and uranium.  Carnegie refuted the allegations of illegal mining pointing out that titanium and iron oxide were components of ilmenite, while uranium was an inseparable trace element within the zircon it was licensed to mine.  Carnegie initiated an arbitration under the terms of the licence against the Gambian government in 2009 seeking recovery of damages for lost profits from its operations in The Gambia.

Klaus Reichert SC of Brick Court Chambers was instructed, as co-counsel with Maurice Kenton of Clyde & Co, by the claimant in the ICSID proceedings.