Dispute puts new mining law in world spotlight

Italian investors in Marlin Holdings, Marlin Corporation and Red Graniti South Africa have announced that the World Bank’s International Centre for the Settlement of Investments Disputes had granted their request for compulsory international arbitration. The request arises from the Mineral and Petroleum Resources Development Act, which places previously privately-owned mineral resources under state custody. The request was made under SA’s bilateral investment treaties with Italy and the Belgium-Luxembourg economic union. Under the treaties, investors are entitled to ‘prompt adequate and effective’ compensation for the expropriation of the SA investments, which must be accorded ‘fair and equitable’ treatment. The investors say the mining charter discriminates against foreign investors in favour of historically disadvantaged South Africans, violating the treaties’ equitable treatment requirements. Full report in Business Report