Equatorial Resources Advances Congo Arbitration as Guinea Permits Hang in Balance
Equatorial Resources Limited reports progress in its ICSID arbitration against the Republic of Congo and faces uncertainty over exploration permits in Guinea, while maintaining a solid cash position.
- ICSID tribunal schedules final Congo arbitration hearing for November 2025
- Republic of Congo ordered to pay A$1.2 million in costs due to hearing postponement
- Guinea government cancels multiple exploration permits including Equatorial’s Nimba projects
- Equatorial maintains strong cash reserves of A$9.6 million at quarter-end
- Company remains committed to Congo investments and open to dispute resolution dialogue
Ongoing Arbitration in Congo
Equatorial Resources Limited continues to navigate a complex international arbitration process with the Republic of Congo concerning the unlawful expropriation of its iron ore projects. The dispute, brought by Equatorial’s Mauritian subsidiary EEPL under the Congo-Mauritius Bilateral Investment Treaty, centers on the Badondo and Mayoko-Moussondji iron ore projects in Congo’s Sangha and Niari regions.
The International Centre for Settlement of Investment Disputes (ICSID) tribunal has now confirmed that the final hearing will take place in Washington D.C. from 7 to 12 November 2025. This follows a postponement of the originally scheduled March hearing in Paris, for which the tribunal ordered Congo to pay A$1.2 million in costs to EEPL, reflecting expenses incurred due to the last-minute delay.
Valuation and Compensation Claims
EEPL’s claims include compensation for the expropriation of its investments, with valuations ranging from US$395 million to US$1.25 billion, excluding interest and costs. The Reply Memorial filed in June 2024 detailed expert reports supporting these valuations. The tribunal has also scheduled pre-hearing procedural conferences in September and October 2025 to ensure an efficient conduct of the final hearing.
Equatorial has engaged independent expert witnesses and legal counsel to support its case, with key company executives expected to present testimony. Despite the dispute, the company remains committed to its Congo projects and expresses openness to constructive dialogue aimed at reaching a mutually satisfactory settlement.
Challenges in Guinea Exploration Permits
Meanwhile, Equatorial faces regulatory uncertainty in Guinea, where the government announced the cancellation of over 120 exploration permits, including those covering the company’s Nimba Alliance Iron Ore Project. This notification came via a news broadcast featuring Guinea’s Minister of Information and Communication, but Equatorial has yet to receive formal communication regarding the status of its permits.
The Nimba project, acquired in 2023, is a significant iron ore asset located within a prolific corridor in West Africa. The company has been actively engaging with Guinea’s Ministry of Mines to support renewal applications and plans to implement revised exploration programs pending regulatory clarity.
Financial Position and Outlook
At the end of June 2025, Equatorial reported a strong cash position of approximately A$9.6 million, providing a solid financial foundation to support ongoing arbitration and exploration activities. The company’s quarterly cash flow statement reflects continued investment in geological consulting and arbitration-related expenses.
While the arbitration outcome and permit renewals remain uncertain, Equatorial’s management underscores its commitment to advancing its resource projects and maintaining constructive engagement with relevant authorities in both Congo and Guinea.
Bottom Line?
As Equatorial awaits the arbitration verdict and regulatory clarity in Guinea, investors should watch closely for developments that will shape the company’s future trajectory.
Questions in the middle?
- What is the likely timeline and potential financial impact of the ICSID arbitration award?
- How will Guinea’s permit cancellations affect Equatorial’s exploration and development plans?
- Could Equatorial reach a settlement with Congo that accelerates project reinstatement or compensation?
