From Business Standard
The Senegalese government has won an initial ruling in an international arbitration case concerning an iron mining project in the southeast of the country, steel giant ArcelorMittal.
“The arbitral tribunal has now issued its first award and decided that Senegal is entitled to terminate the 2007 agreements” but the question of possible damages has yet to be considered, ArcelorMittal said of the ruling by the Paris-based Court of Arbitration of the International Chamber of Commerce.
The world’s top steel company said it concluded an agreement with Senegal in 2007 to develop the Faleme project in the Tambacounda region to mine iron ore, a key component of steel.
The envisaged investment of USD 2.2 billion (1.7 billion euros) was the biggest industrial project in the west African country, and was due to have started operations in 2011 and produce 25 million tonnes of iron ore per year.
At the time the Senegalese government estimated the facility would bring it around 75 billion CFA francs (114 million euros or USD 150 million) in tax revenues per year.
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