British company Cadence Minerals reported that in cooperation with its subsidiary REM Mexico Limited (REMML). Issued a request for consultations and negotiations to the Government of Mexico Under the UK-Mexico Bilateral Investment Treaty (BIT), mining concessions for… Sonora Lithium Project.
Cadence Minerals reported that concessions granted to Mexilit and Minera Megalit, two joint ventures in which Cadence operates, were affected. It holds a 30 percent stake through REMML.
In the application, Cadence and REMML identified several BIT obligations that Mexico had violatedIncluding not confiscating investors’ investments in United kingdomAs well as the commitment to treat these investments fairly and equitably.
“Pursuant to Article 10 of the BIT, Cadence and REMML have requested consultations and negotiations with Mexico With the aim of resolving the dispute amicably. The company noted that “the Bilateral Investment Treaty provides for the resolution of disputes through international arbitration if they cannot be resolved through consultations and negotiations.”
Cadence and REMML have appointed a leading international law firm Clifford Chance as advisor to the BIT process. This team specializes in arbitration cases relating to mining-related investment treaties.
Cadence CEO Kiran Murzaria said that the team at Clifford Chance has many years of experience arbitrating mining-related investment treaties He has successfully solved similar cases in the past.
“With your guidance we hope so A constructive solution can be reached through consultations and negotiations With Mexico under a bilateral investment treaty, the director noted.
Changes in mining law
In April 2022 and May 2023, the Government of Mexico approved amendments to its law Mining law, Which banned lithium concessions and declared it a strategic sectorgiving the state the exclusive right to participate in lithium mining operations.
The company had indicated that this reform of the mining law It will not apply to pre-existing privilegesincluding those found in mexilet and magalite.
“The position of Ganfeng Lithium (one of the partners in the Sonora Litio project) and Cadence is that These fixes cannot affect project privileges Because it was granted before the reform of the mining law was issued.”
At the time they made that clear The Mexican subsidiaries have met their minimum investment commitmentsas required by Mexican law.
“In fact, investment in mining development by Mexican subsidiaries You have significantly exceeded your minimum investment commitmentsThis is according to the reports of Mexican subsidiaries submitted to the General Directorate of Mines for the periods 2017-2021.”
The companies involved had already indicated that the Mexican government had not raised any objections until it notified Ganfeng Lithium. It is alleged that minimum investment commitments were not met Steps have been taken to cancel lithium concessions.
Palestine Monetary Authority
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