Sarama Resources Initiates Legal Action Against Burkina Faso Government After Unlawful Withdrawal of Mining Permit

On 6 September 2023, at the Africa Down Under Mining Conference in Perth, the Minister Simon-Pierre Boussim announced that a mining permit in Burkina Faso was available for purchase. Following this announcement, Sarama Resources was led to believe that the government had unlawfully withdrawn their rights to the permit, as confirmed by a letter from the Minister dated 25 August 2023.

Despite Sarama’s repeated attempts to contact the Minister for clarification, they received no further response, leaving the company with no choice but to interpret this as the government removing the rights to the land and, with it, the value of the project. The unlawful withdrawal of the permit has effectively rendered Sarama’s investment in the project worthless.

Andrew Dinning, Sarama’s President, CEO, and Managing Director, said, "The creation of a non-recourse funding facility to cover all costs associated with our arbitration case is a significant step forward in our efforts to seek justice for the damages caused by the Burkina Faso government’s illegal actions."

Sarama’s legal team, Boies Schiller Flexner, a firm with a proven track record in international investment disputes, will now proceed with filing a Request for Arbitration. The company is committed to pursuing this case to the fullest extent possible. This includes seeking redress for the significant financial damages Sarama has suffered as a result of the government’s actions.

Notably, Boies Schiller Flexner was instrumental in securing a recent US$90 million settlement for Indiana Resources in a similar dispute with the government of Tanzania, which highlights the firm's expertise in handling complex international investment disputes.

With this arbitration case, Sarama Resources is taking a strong stand to protect its rights and investments. The company is determined to hold the government of Burkina Faso accountable for its actions and to recover the damages caused by the unlawful withdrawal of the mining permit.

SOURCE: saramaresources.com
COPYRIGHT: Reuters