By: Create media

The binding arbitration proceedings, held in Windhoek, Namibia, and governed by the dispute resolution provisions of a December 2022 sale agreement, concluded that Hebei had breached its contractual obligations by failing to make full and timely payment to Kazera for the acquisition of Kazera’s interest in African Tantalum (Aftan), Kazera reports.

Hebei has been ordered by the arbitrator to pay to Kazera $9.2-million; interest in the amount of $1.6-million accrued up to October 8, 2024; interest at the rate of 20% yearly on the $9.2-million from October 9, 2024, to date of payment (being $1.1-million as at May 6); and full legal and arbitration costs.

As at May 6, the total amount accrued was therefore $11.9-million plus costs.

Kazera says the ruling validates its position and brings clarity to a complex and long-running contractual dispute.

Kazera in December 2022 entered into an agreement with Hebei for the sale of its entire interest in Aftan, including the transfer of related shareholder loans, for about $13-million.

Hebei made only partial payments totalling $4.1-million and, having failed to meet the balance of its obligations despite formal written demand, was in breach of the agreement, the company explains.

The agreement included binding arbitration in the event of a dispute and Kazera started proceedings in September 2024 after repeated attempts to resolve the matter amicably failed, it points out.

“We’ve always believed in the strength and fairness of our case, and this ruling confirms that. It is therefore a welcome outcome that protects shareholder interests and draws a line under a long-running issue.

“While the arbitration process hasn’t held us back operationally, it has been an unhelpful distraction. We can now move forward with greater clarity and remain focused on unlocking value across the rest of the portfolio. We will now take the necessary steps to recover the full amount we are owed,” says CEO Dennis Edmonds.

Kazera is now assessing the most effective legal and commercially beneficial avenues to enforce the award and recover the full amount owed.