Key Highlights

  • EEPL is claiming damages of US$395 million to US$1.25 billion from Congo, plus interest and costs of US$134 million to US$741 million.
  • The ICSID Tribunal has ordered Congo to pay A$1.2 million in costs, accruing interest at 5.10% a year from 13 July 2025.
  • Cash at 30 September 2026 was approximately A$6.8 million, with 131,445,353 shares on issue.
  • Equatorial continues to seek clarification of the status of its Nimba West and Nimba North permits in Guinea.

Equatorial Resources Limited (ASX:EQX) reported that its international arbitration against the Republic of Congo remains before the Arbitral Tribunal of ICSID, the arbitration centre in Washington, D.C.,, which has yet to render a final award. The company's Mauritian subsidiary, EEPL Holdings, is claiming damages of US$395 million to US$1.25 billion in connection with two Congolese iron ore projects. At 30 September 2026 Equatorial held approximately A$6.8 million in cash, against A$7.089 million at the start of the quarter.

The Congo Arbitration

EEPL referred its dispute with Congo to ICSID arbitration in 2021. It concerns the Badondo Iron Ore Project in the Sangha region and the Mayoko-Moussondji Iron Ore Project in the Niari region. Claims are brought under the Congo-Mauritius BIT, under which EEPL's interests are protected because it is a Mauritian company, and include allegations of unlawful expropriation and a failure to provide fair and equitable treatment. Congo's measures against Badondo came in December 2020, while the exploitation permit over Mayoko-Moussondji, held by Congo Mining Limited, was revoked in June 2021. Congo Mining Limited was owned by Equatorial until 2015, and EEPL continues to participate in it, including through Royalty arrangements.

Damages claimed range from US$395 million to US$1.25 billion depending on the methodology adopted, and interest and costs are claimed separately in a range of US$134 million to US$741 million. The final hearing took place in November 2025 at ICSID's Washington, D.C. headquarters, where the company presented its case and cross-examined the single expert witness relied on by Congo. EEPL filed post-hearing submissions in February and March 2026 and a costs submission in April 2026, which were the final procedural steps. No date is specified for the award, although Equatorial indicated it may be rendered in the first half of 2027.

Costs Order, Counsel and Guinea Permits

Separately from the final award, the Tribunal has ordered Congo to pay EEPL A$1.2 million for costs caused by the earlier postponement of the final hearing. The amount is unpaid and accrues interest from 13 July 2025 at 5.10% a year, and it is not included in the cash balance. Boies Schiller Flexner was appointed to represent EEPL after its engagement with Clifford Chance ended following a dispute over fees, and during the quarter Clifford Chance served Equatorial and EEPL with a notice of arbitration over those fees, which Equatorial intends to defend.

In Guinea, the Nimba Alliance iron ore project comprises 100% of the Nimba West permit, covering about 198km2, and 56% of the Nimba North permit, covering about 107km2. The company learned in May 2025 through a news broadcast that Guinea had cancelled a number of exploration permits, including these two, and it has received no formal communication on any change of status. The permits are listed as awaiting renewal, and the company continues to seek clarification.

Cash Flow and Corporate Position

Net cash used in Operating Activities was A$332,000, comprising A$194,000 of administration and corporate costs, A$16,000 of staff costs, A$145,000 for the Congo arbitration and A$53,000 for Business development, partly offset by A$76,000 of interest received. No payments were made for mining exploration, and related party payments were approximately A$97,000 for director fees, Superannuation and administrative services. Closing cash was A$6.757 million, compared with A$7.089 million at the start of the quarter, and the company has 131,445,353 shares on issue. Equatorial also continued to search for and review new resource opportunities during the quarter.

Where the Quarter Leaves Equatorial

Equatorial ended the quarter with its Congo claim awaiting a final award, a A$1.2 million costs order unpaid, Guinea permit status unresolved, 131,445,353 shares on issue and cash of approximately A$6.8 million. The company said it remains open to a negotiated settlement with Congo and continues to review new resource opportunities.