Cameroon faces massive potential payout in iron ore dispute with Sundance Resources

An attorney's assertion that international courts have ordered Cameroon to pay 355 billion FCFA (approximately $575 million) to Australian mining company SUNDANCE Resources has reignited debate over the Mbalam-Nabeba iron ore project. Lawyer Maître Sikati alleged that Cameroonian leaders sign contracts without proper review, leading to unfavorable outcomes.

Sikati cited the alleged condemnation as proof of this, stating that Cameroon must pay Sundance Resources for the "abusive rupture" of the Mbalam-Nabeba iron ore exploitation contract. The legal battle is indeed underway at the International Court of Arbitration of the ICC in Paris, initiated in 2021.

The core of the dispute lies in Cameroon and Congo's 2020 decision to withdraw the project's exploitation permit from Sundance, opting instead for Chinese partners. The African nations cited "prolonged insufficiency of activity" by the company. Sundance responded in 2022 with a claim memorandum, demanding 3,401.6 billion FCFA ($5.5 billion) or the return of the permit.

However, the 355 billion FCFA figure mentioned by Sikati does not appear in any official documents, unlike the 3.4 trillion FCFA claim. The verdict, initially expected in late 2025 and then March 2026, has been postponed to late 2026. Adding a layer of complexity, the ICC dismissed Sundance's case against Congo in January 2026, a precedent closely watched in Yaoundé. While Sikati's specific financial figure remains uncorroborated, his alert underscores the substantial financial risks and the critical need for securing mining contracts.