Arbitration panel chosen for mineral rights hearing
Publish date: 17 April 2007
Issue Number: 1806
Diary: Legalbrief Today
Category: Corruption
The government and Italian investors in Marlin Holdings, Marlin Corporation and Red Graniti SA have nominated but not yet named arbitrators as part of the international arbitration against the government called by the investors, says Business Report.
Marlin is a privately held part of the Finstone Group, while Red Graniti SA is a subsidiary of Red Graniti of Italy. The companies combined SA operations employ about 2 000 people. Webber Wentzel Bowens mining lawyer Peter Leon said the government had appointed Paris-based law firm Freshfields Bruchhaus Deringer to represent it at the arbitration. The companies alleged that the SA mining law was in violation of the bilateral treaties signed between SA, Luxembourg and Italy. The Italian and Luxembourg companies are suing the SA Government for losses and damages totalling the equivalent of R2.6bn for the expropriation of its mineral rights under the Minerals and Petroleum Resources Development Act, which became law in may 2004. Under the new law, the state holds mineral rights that were not previously owned by private interests. Full report in Business Report
