Cadence Minerals plc has asked to meet the Mexican Government over the as yet unverified revocation of its Sonora lithium mining concessions and “related acts and omissions by Mexico”.
BILATERAL INVESTMENT TREATY
The concessions include those granted to Mexilit S.A. de CV and Minera Megalit S.A. de CV, in which Cadence holds a 30% stake through its local subsidiary REMML.
Ganfeng Lithium Group Co., Ltd is the third partner and operator of the joint venture.
Cadence’s request for consultations and negotiations under the United Kingdom-Mexico Bilateral Investment Treaty (BIT) follows the filing during August of recourses.
The company has identified “various BIT obligations” breached by Mexico, including the country’s obligation not to expropriate unlawfully the investments of UK investors and its obligation to treat such investments “fairly and equitably”.
Cadence said it aimed to resolve the dispute amicably, adding that BIT provided for disputes to be resolved by international arbitration if unresolved through consultation and negotiation.
The company and REMML have engaged international law firm Clifford Chance as counsel for the BIT process.
“The team at Clifford Chance have many years of experience in mining-related investment treaty arbitration, and have successfully resolved similar cases in the past,” said Cadence chief executive Kiran Morzaria.
“With their guidance, we are hopeful that a constructive solution can be reached through consultations and negotiations with Mexico under the BIT.”