Sarama Confirms ICSID Arbitration Hearing Date in Burkina Faso Permit Dispute
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TL;DR
- Sarama Resources seeks $242 million plus interest from Burkina Faso via ICSID arbitration.
- Dispute concerns the alleged expropriation of Sarama's Tankoro 2 gold exploration permit.
- ICSID merits hearing is scheduled for February 22-26, 2027.
- Sarama secured $4.4 million in non-recourse funding to cover legal expenses.
Overview
Sarama Resources, a Vancouver-based mining company, has confirmed that a hearing date has been set for its arbitration against the government of Burkina Faso. The dispute relates to the alleged expropriation of Sarama's Tankoro 2 gold exploration permit. The arbitration is proceeding under the International Centre for Settlement of Investment Disputes (ICSID), and Sarama is seeking damages of $242 million plus interest.
What Happened
Sarama Resources initiated arbitration proceedings after claiming that Burkina Faso unlawfully expropriated its Tankoro 2 exploration permit, considered central to a major gold development project.
A procedural timetable and a date for the arbitration merits hearing have now been set. The hearing is scheduled to take place from February 22 to February 26, 2027.
Prior to the hearing, the case will go through document production, additional written submissions, and pre-hearing procedural steps. Both parties will have an opportunity to present evidence and cross-examine witnesses before the ICSID tribunal.
Sarama has secured a $4.4 million four-year non-recourse funding facility to cover all legal fees and expenses related to the arbitration. The facility is repayable only if Sarama prevails or the case is settled successfully.
Context
The Tankoro 2 permit was part of a multimillion-ounce gold project and is significant to Sarama's portfolio.
The International Centre for Settlement of Investment Disputes (ICSID) is a World Bank Group institution that handles investment disputes between investors and states. Arbitration under ICSID is a common recourse for foreign investors alleging expropriation by host governments.
Why It Matters
- The arbitration outcome could determine substantial compensation for Sarama if Burkina Faso is found liable for expropriation.
- The case exemplifies ongoing challenges faced by mining and exploration companies operating in developing countries and highlights the role of ICSID in resolving investor-state disputes.