Arbitration Postponement Clouds Equatorial’s Congo Iron Ore Prospects Amid Exploration Gains

Arbitration Delay and Legal Context

Equatorial Resources Limited (ASX: EQX) has announced a significant update regarding its ongoing international arbitration against the Republic of Congo. The final hearing, originally scheduled for March 2025 in Paris under the auspices of the International Centre for Settlement of Investment Disputes (ICSID), was postponed due to Congo’s failure to pay hearing expenses. The hearing is now expected to take place in Washington DC from November 7 to 12, 2025.

This arbitration stems from measures taken by Congo against Equatorial’s Mauritian subsidiary, EEPL, which holds investments in two iron ore projects in Congo: the Badondo and Mayoko-Moussondji Ore Projects. EEPL alleges unlawful expropriation and violations of fair and equitable treatment under the Congo-Mauritius Bilateral Investment Treaty. The dispute has been complex, involving counterclaims from Congo that were dismissed by the tribunal in early 2024.

Exploration Progress at Nimba Alliance Iron Ore Project

Parallel to its legal proceedings, Equatorial continues to advance its exploration activities at the Nimba Alliance Iron Ore Project in Guinea, acquired in 2023. The project covers approximately 198 square kilometers across two permits, with a focus on six priority iron ore targets. Recent assay results from the D1 Canga target confirmed high-grade iron mineralisation ranging from 62% to 66% Fe over a 10-kilometer strike length, while the T5 target showed hard rock mineralisation between 62% and 64% Fe over 8 kilometers.

These findings reinforce the project’s potential as a significant iron ore resource in West Africa’s prolific Nimba Iron Ore Corridor. Equatorial plans to undertake a maiden drilling program at the D1 target and expand surface sampling to validate and extend the mineralisation. The company’s initial exploration target for T5 estimates between 260 and 660 million tonnes of mineralisation at grades ranging from 35% to 65% Fe, though this remains conceptual and not yet JORC-compliant.

Financial Position and Strategic Outlook

Equatorial maintains a robust financial position with approximately AUD 10.8 million in cash and 131.4 million shares on issue as of March 31, 2025. The company’s expenditures during the quarter included geological consulting and arbitration-related costs, reflecting its dual focus on advancing exploration and resolving the Congo dispute.

Despite the arbitration delay, Equatorial remains committed to its investments in Congo and Guinea, expressing openness to constructive dialogue and potential settlement. The company continues to engage with relevant authorities regarding permit renewals and regulatory requirements for its Nimba project, aiming to progress towards development and production.

With the arbitration hearing now set for late 2025 and promising exploration results emerging, Equatorial is navigating a pivotal phase that could reshape its asset base and unlock value for shareholders.