The government of Burkina Faso will forge ahead with the move to terminate a $1 Billion manganese mining deal with Pan African Minerals, a unit of Timis Mining Corp. This is irrespective of the fact that the International Court of Arbitration is yet to pass the verdict on a case about the operation.
According to Bloomberg, minister of mines, Oumarou Idani, said on state-owned television that his government would issue Pan African Minerals with a 90-day notice on the withdraw of the Tambao deposit deal in May.
Burkina Faso has maintained that the decision to terminate the deal is due to the company’s failure to honour conditions of the agreement.
Expressing his government’s stance, Minister Idani said, “The company has failed to build rail and road infrastructure that were part of the agreement.”
Pan African was told to stop production in 2015 after a popular revolt ousted dictator, Blaise Compaore, from power. Following this development, the company then petitioned the Paris-based arbitration court to prevent its permit from being withdrawn.
With estimated reserves of 100 million metric tons, Tambao is the world’s largest resource of manganese.
Burkina Faso has received interest from other parties to develop the mine, Idani said.