Amaplat Mauritius Limited, Amari Nickel Holdings Zimbabwe Limited v. Zimbabwe Mining Development Corporation, The Chief Mining Commissioner, Ministry of Mines, Zimbabwe
ICC · Investment (ICSID and treaty) · Zambia · 12 Jan 2014
Why it matters
This ICC award is notable for its detailed analysis of the validity of memoranda of understanding (MOUs) in the mining sector, the application of Zimbabwean law on corporate authority and illegality, and the tribunal's handling of a partial withdrawal and arbitrator resignation. It illustrates the challenges of enforcing joint venture agreements in politically sensitive industries and the use of the 'ounce in the ground' valuation method for mineral resources.
Summary
The case arose from two MOUs for nickel and platinum joint ventures between Zimbabwean state-owned ZMDC and Mauritian companies. ZMDC terminated the MOUs alleging corruption and lack of approvals. The claimants sought damages for repudiation. The ICC tribunal, seated in Lusaka, Zambia, applied Zimbabwean law. It found the MOUs valid and binding, rejecting ZMDC's defenses of illegality and lack of board or ministerial approval. The tribunal held that ZMDC repudiated the agreements. By majority, it awarded damages based on the 'ounce in the ground' valuation method: US$42,882,000 to Amaplat for the platinum MOU and US$3,900,000 to Amari for the nickel MOU. The minority arbitrator would have limited recovery to restitution of investments. The tribunal also ordered costs and interest. The award was later challenged in Zambian courts.
The detail
Parties: Amaplat Mauritius Limited, Amari Nickel Holdings Zimbabwe Limited v. Zimbabwe Mining Development Corporation, The Chief Mining Commissioner, Ministry of Mines, Zimbabwe
Case number: ICC Case No. 17720/AMP/MD/TO
Outcome: The Tribunal ordered ZMDC to pay Amaplat US$42,882,000 and Amari US$3,900,000 in damages, plus costs and interest.
Quantum: US$46,782,000
Applicable law: ICC Rules of Arbitration (1998); Zimbabwean law as governing law; MOUs for nickel and platinum joint ventures.
Issues in play: The dispute involved contract law principles regarding validity and repudiation of MOUs, and the requirement of board and ministerial approval under Zimbabwean law.
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