Equatorial Reports A$8.7 Million Cash and Postponed Congo Arbitration Hearing
Equatorial Resources reports a postponed arbitration hearing over Congo iron ore disputes and seeks clarity on Guinea permit cancellations, while maintaining a solid cash reserve.
- Arbitration hearing against Republic of Congo postponed to November 2025
- Claims relate to unlawful expropriation of iron ore projects in Congo
- Guinea government reportedly cancelled multiple exploration permits including Equatorial’s
- No formal communication received by Equatorial regarding Guinea permit status
- Company holds approximately AUD 8.7 million cash at quarter end
Arbitration Postponed Amid Congo Dispute
Equatorial Resources Limited has announced a delay in a critical arbitration hearing concerning its Mauritian subsidiary EEPL’s investment dispute with the Republic of Congo. Originally scheduled for March 2025 in Paris, the hearing has been postponed to November 7–12, 2025, in Washington D.C. The dispute centers on claims that Congo unlawfully expropriated EEPL’s interests in two major iron ore projects, the Badondo Ore Iron Project and the Mayoko-Moussondji Ore Iron Project.
The company’s case will be presented by a single expert witness, with Equatorial’s former CEO and current Managing Director John Welborn among those attending. The tribunal has also ordered Congo to pay EEPL A$1.2 million in costs due to the last-minute postponement, with interest accruing at 5.10% per annum from July 13, 2025.
Ongoing Legal and Investment Challenges in Congo
EEPL’s claims invoke protections under the Congo-Mauritius Bilateral Investment Treaty, alleging unfair treatment and unlawful expropriation by Congo’s government. The contested measures reportedly form part of a broader campaign to transfer mining rights to Chinese-linked entities. Despite the dispute, Equatorial remains committed to its Congo investments and open to constructive dialogue aimed at a mutually satisfactory resolution.
Permit Cancellations Cloud Guinea Operations
In Guinea, Equatorial faces regulatory uncertainty after the government announced via a news broadcast in May 2025 the cancellation of numerous mineral exploration permits, including those covering the company’s Nimba Alliance Iron Ore Project. Notably, Equatorial has not received any formal communication confirming changes to its exploration permits, which cover significant landholdings in the prolific Nimba Iron Ore Corridor.
The company is actively engaging with Guinea’s Ministry of Mines and other authorities to clarify the status of its North and West Nimba permits and is pursuing renewal applications. Equatorial plans to implement revised exploration programs to meet regulatory requirements, including expanded surface sampling and maiden drilling campaigns, contingent on permit status.
Financial Position and Outlook
Equatorial closed the September 2025 quarter with a robust cash position of approximately AUD 8.7 million and no new exploration expenditures during the period. The company continues to focus on advancing its resource base and business development opportunities despite ongoing legal and regulatory challenges. Management’s cautious optimism is reflected in their commitment to both Congo and Guinea projects while navigating complex geopolitical and regulatory landscapes.
Bottom Line?
As Equatorial navigates legal delays and regulatory uncertainties, the coming months will be pivotal for its African iron ore ambitions.
Questions in the middle?
- What impact will the arbitration outcome have on Equatorial’s Congo operations and valuation?
- Will Guinea’s government formally clarify the status of Equatorial’s exploration permits?
- How will ongoing geopolitical risks in these regions affect Equatorial’s project timelines and financing?
