https://www.engineeringnews.co.za

Plaintiffs in Sierra Leone diamond mine lawsuit request freeze of Steinmetz subsidiary's assets

19th August 2020

By: Reuters

  

Font size: - +

FREETOWN/JOHANNESBURG – Sierra Leoneans seeking damages for alleged environmental degradation around a diamond mine have applied for a freezing order on the assets of Octea, a subsidiary of Israeli billionaire Beny Steinmetz's BSG Resources (BSGR).

In an affidavit to the high court of Sierra Leone, seen by Reuters, the lawyer for the plaintiffs said there was a "clear and present risk" the defendants could expatriate funds in order to avoid having to pay out if the court rules against them.

Sierra Leone's High Court discussed the application for a freezing order on Tuesday and will continue on Wednesday, a lawyer for the prosecution and a court clerk said. A spokesperson for BSGR said the company would not comment until there was a legal ruling.

The lawsuit against Octea subsidiary Koidu Limited, filed in March last year by 73 plaintiffs who all live within 500 m of the mine, says they have suffered respiratory infections and headaches from living near the mine.

They are seeking $288-million in damages.

The affidavit said that without a freezing order, plaintiffs might have to seek execution of a possible judgment in their favour in as many as seven separate jurisdictions, because most of the 12 defendants are not domiciled in Sierra Leone, and BSGR is in administration proceedings.

BSGR, Octea Limited, and linked companies Octea Diamonds Limited and Octea Services Limited are registered in Guernsey.

Britain's High Court issued a freezing order in December 2019 against Steinmetz and the seven other defendants in an ongoing case against Brazilian iron-ore miner Vale, freezing assets including a yacht and two Bombardier aircraft held by BSGR parent company Nysco Management Corporation, court documents show.

Sierra Leone's mines minister Timothy Musa Kabba did not reply to a request for comment. 

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

EKATO Africa
EKATO Africa

Established in 1933, EKATO is the world leader in agitation technology, supplying agitators for processes and applications such as chemicals and...

VISIT SHOWROOM 
MBE Minerals SA (Pty) Ltd
MBE Minerals SA (Pty) Ltd

Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.089 1.758s - 140pq - 2rq
Subscribe Now