Pan African Minerals to seek compensation from country

December 23, 2015 7:15 AM

"The suspension was illegal. We don't know what their aim was in doing it, but we are starting over from zero with a lot of damages for the company," said Souleymane Mihin, managing director of the joint venture with the state.

A file photo of a mine in Burkino Faso. REUTERS/Katrina Manson

Pan African Minerals, a unit of Romanian-Australian resource tycoon Frank Timis's mining conglomerate, will seek compensation from Burkina Faso for losses incurred during a suspension of its Tambao manganese mine, a company executive said on Tuesday.

The West African nation's transitional government suspended Pan African's licence to export manganese from its Tambao mine in the country's northeast in March, saying it had not respected the terms of the agreement.

"The suspension was illegal. We don't know what their aim was in doing it, but we are starting over from zero with a lot of damages for the company," said Souleymane Mihin, managing director of the joint venture with the state.

Tambao, said by the company to be the world's largest manganese mine, is 90-percent owned by Pan African Minerals with the remainder held by the state.

The transitional government lifted the suspension of exports last week.

"During the suspension, the company lost nearly $10 million per month," Souleymane Mihin, head of the joint venture with the state, said.

"Frameworks exist to resolve this kind of clear problem in due course through a gentlemen's agreement."