Abyssinian Metals, African Mining and Energy (AME), Abyssinian Investments, and Kenticha Mining (KMP) have initiated a notice of dispute and requested negotiations with the Ethiopian government.
These actions stem from concerns regarding measures taken against Abyssinian’s investments in the Kenticha lithium and tantalum project in the country.
The involved parties have also issued a force majeure notice to the Ethiopian Federal Ministry of Mines and Petroleum, citing limitations in accessing the Kenticha project site and continuing the agreed-upon work program.
The notice comes from the joint venture (JV) company KMP, where members of the Abyssinian group hold a 51% interest, while the State-owned Oromia Share Mining Company holds 49%.
Abyssinian’s rights over the Kenticha project are channeled through KMP, holding an exploration license agreement, an exploration license, and a mining license issued by the Ministry for the historical tailings area at the project site.
The Abyssinian group’s efforts have identified an inferred resource of 88 million tonnes grading 0.78% lithium oxide and other exploration targets.
Scheduled to commence spodumene concentrate production in the first quarter of the following year, the Abyssinian group has been working diligently to establish a mining operation at Kenticha.
Protected by the Netherlands-Ethiopia Bilateral Investment Treaty (BIT), the Abyssinian group’s investments in the Kenticha project encompass standard protections for covered investments.
These protections ensure fair treatment, full safeguarding, and non-impairment of investments through unreasonable and discriminatory measures. The BIT also prohibits unlawful expropriation of covered investments.
In accordance with the BIT, in case of a dispute between the investor and the host State (Ethiopia), a six-month period of amicable negotiations is required.
If unresolved, the BIT stipulates that the dispute must undergo international arbitration outside of the host State.
Despite being ordered to vacate the Kenticha site on October 18, Abyssinian expresses commitment to the project.
The group seeks an amicable resolution to enable their return to Kenticha and resume pre-production activities.
