AMN - TUNISIA: Phosphate project returned to Celamin

The Court of Appeal in Tunisia had decided in favour of Celamin Holdings Limited with the result being the return of the Chaketma Phosphate Project to the company. The Court issued orders enforcing the interim and final arbitration decisions, which will also result in Celamin being paid more than US$4 million in damages and costs plus interest.

On November 30, 2017, a sole arbitrator appointed by the International Court of Arbitration of the International Chamber of Commerce found in favour of Celamin in relation to the fraudulent transfer to Tunisian Mining Services (TMS) of Celamin’s 51% interest in Chaketma Phosphates SARL (CPSA), the operating company that holds the Chaketma phosphate permit.

The sole arbitrator ordered TMS to return Celamin’s 51% interest in CPSA and pay damages and costs.

As TMS did not comply with the arbitrator’s award, Celamin applied to the Court of Appeal of Tunis to enforce the arbitrator’s orders.

Celamin said that the decision received from the court was a very pleasing development in what had been a lengthy dispute following the fraudulent activities of Celamin’s previous partner, TMS, and reinforced Tunisia as a viable destination for foreign investment in the mineral resources sector.

The orders are immediately enforceable and Celamin will now begin the process of recovering its interests and the costs and damages awarded.

The Chaketma phosphate permit, operated by CPSA, is a potential large-scale phosphate development asset, which comprises six prospects over a total area of 56sqkm.

It hosts a total JORC-compliant inferred resource of 130 million tonnes at 20.5% P2O5, confirmed from drilling at only two of the project’s six prospects.

Celamin will keep the market informed on the progress of TMS’ compliance with the court’s orders.

Following enforcement allowing Celamin to recover control of the Chaketma project, Celamin plans to:

• Introduce an international partner to facilitate funding discussions; and

• Commence a feasibility study to determine the viability of producing either rock phosphate or chemical fertiliser.

The project is close to existing road, rail and power infrastructure. Notably, Chaketma is proximate to two 42-inch gas pipelines from the Algerian gas fields to the Tunisian coastal town of Al Huwariyah and is nearby to a number of towns in the Kasserine region supportive of Celamin developing the project.

In early March Celamin signed an MoU with Al Kassm Holding, owned by highly regarded Tunisian businessman Ahmed Bouchamaoui.

This provides for Celamin and Al Kassm to work together in Tunisia with a primary focus on phosphate projects and possibly on other mineral resource projects in Tunisia and elsewhere in Africa.

Bouchamaoui said: “I am extremely pleased to be working with Celamin as they look to further their interests in the resources sector in Tunisia. The potential of the region is largely untapped and I am very confident that working with Celamin, we will realise some of that potential.”

Celamin executive director Simon Eley said: “Mr Bouchamaoui is a proven and successful investor in Tunisia and abroad due to his international experience and openness to challenging the status quo. His involvement is a significant vote of confidence in Celamin and its resources projects in Tunisia.

"We are extremely pleased in establishing a partnership with Mr Bouchamaoui, bringing to Celamin extensive Tunisia experience and networks which will be invaluable to Celamin as the company grows.”

www.celaminnl.com.au