Equatorial Resources has completed the final hearing in its high-stakes arbitration against the Republic of Congo and is pursuing clarity on permit cancellations in Guinea, all while maintaining a solid cash reserve.
- Final ICSID arbitration hearing against Republic of Congo completed in November 2025
- Mauritian subsidiary EEPL preparing post-hearing submissions claiming up to US$1.25 billion in damages
- Tribunal expected to deliver final award by mid-2027, timing remains confidential
- Guinea government reportedly cancelled exploration permits including key Nimba Alliance Iron Ore Project permits
- Equatorial holds approximately A$8.1 million in cash at December 2025 quarter-end
Final Arbitration Hearing Marks Key Milestone
Equatorial Resources Limited has reached a significant juncture in its ongoing international arbitration against the Republic of Congo. The final hearing before the International Centre for Settlement of Investment Disputes (ICSID) was held in Washington, D.C., in November 2025. This arbitration concerns alleged unlawful measures taken by Congo against Equatorial’s Mauritian subsidiary EEPL’s investments in two iron ore projects – the Badondo and Mayoko-Moussondji Iron Ore Projects.
EEPL is now preparing its post-hearing written submissions, with deadlines set for January and March 2026. These submissions will outline claims for damages ranging from US$395 million to US$1.25 billion, depending on valuation methodologies, excluding interest and costs. The tribunal is expected to issue a final award by mid-2027, although the exact timing remains confidential.
Ongoing Dispute and Potential Impact
The dispute stems from Congo’s revocation of mining permits and alleged expropriation of EEPL’s iron ore interests, actions which Equatorial contends violate the bilateral investment treaty between Congo and Mauritius. Despite the legal battle, Equatorial remains committed to its investments in Congo and is open to constructive dialogue with the government to resolve the dispute amicably.
Badondo, situated in a promising iron ore region near other major deposits and Fortescue Metal Group’s Gabon project, remains central to Equatorial’s long-term strategy. The company continues efforts to have its mining license reinstated and to seek appropriate compensation.
Uncertainty Over Guinea Exploration Permits
Separately, Equatorial faces regulatory uncertainty in Guinea, where a government news broadcast in May 2025 announced the cancellation of multiple mineral exploration permits, including those covering the Nimba Alliance Iron Ore Project. Notably, Equatorial has not received formal written communication regarding these cancellations and is actively seeking clarification from Guinea’s relevant authorities.
The Nimba project, acquired in 2023, covers a substantial landholding in Guinea’s prolific iron ore corridor and is strategically located near transport infrastructure, including Liberia’s Lamco railway. Equatorial plans to implement revised exploration programs pending regulatory clarity, aiming to validate and extend known high-grade mineralisation.
Financial Position and Corporate Outlook
Despite these challenges, Equatorial maintains a strong financial position with approximately A$8.1 million in cash at the end of December 2025. The company reported no exploration expenditures during the quarter but continues to invest in business development and arbitration-related activities.
Equatorial’s leadership, including Director John Welborn and Company Secretary Greg Swan, remains engaged in navigating the complex legal and regulatory landscape while positioning the company for future growth in the iron ore sector.
Bottom Line?
As Equatorial awaits a pivotal ICSID ruling and regulatory clarity from Guinea, investors will watch closely for developments that could reshape the company’s prospects.
Questions in the middle?
- What are the chances of a settlement between Equatorial and the Republic of Congo before the ICSID award?
- How will Guinea’s formal response to the permit cancellations impact Equatorial’s exploration plans and valuation?
- What strategies will Equatorial employ to sustain operations and growth amid ongoing legal and regulatory uncertainties?