Court Dismisses Case against Elenilto, Western Cluster
The judge of the Civil Law Court at the Temple of Justice, Cllr. Boima Kontoe has handed down his final ruling dismissing the case filed against Elenilto Minerals and Mining, Western Cluster Limited and Sesa Goa Limited by a Liberian company in May 2012 over claims of damages.
According to the ruling on Friday, August 10, the court dismissed the suit against the companies owing to lack of jurisdiction over the case.
The Law Office of Dean Associates, Inc. on Tuesday, May 29, 2012 filed an action of damages against three companies, namely Elenito Investment Limited (“Elenilto”), Western Cluster Limited and Sasa Goa, a subsidiary of Vedanta Group.
The lawsuit, which seeks special damages of United Stares Dollars Six Billion (US$6 billion) and general damages of United States Dollars Four Billion (US$4 billion), was filed on behalf of Orbital, INC. (“Orbital”), a wholly owned Liberian corporation, at the Civil Law Court, Sixth Judicial Circuit, Montserrado County, Monrovia, Liberia before his Honor, Yusif D. Kaba, Resident Circuit Judge.
According to the complaints and its exhibits, in 2008, Orbital and Elenilto entered into an agreement to jointly pursue the Western Cluster Project. It was agreed that the parties would set up a third company, after the bid for the Project was won, with Orbital having ten percent (10%) shares and Elenilto ninety percent (90%) shares of the third company.
It is recorded that Orbital, in fulfillment of its obligations under the Agreement, diligently worked with Elenilto, provided consultancy, introduced Elenilto to the Liberian Bureaucracy, arranged and accompanied Elenilto to several meetings with Liberian Government Officials.
It is further reported that following the winning of the bid, Elenilto established a third company, Western Cluster Limited, and named itself as one hundred percent (100%) shareholder of the new company, to the total exclusion of Orbital.
Orbital says the projected reserves of the Bea Mountain, Mano River and Bomi Hill comprising the Western Cluster, is put at Nine Hundred Fifty Million (950,000,000) metric tons of iron ore.
At the current market price of United States Dollars One Hundred Forty (US$140.00) per ton, FOB, a total of United States Dollars One Hundred Thirty Three Billion (US$133 billion) is to be realized from exploitation of the ore; and, at a profit margin of twenty percent (20%), United States Dollars Sixty Six Billion (US$66 billion)