Sarama Resources Ltd has formally initiated arbitration proceedings against the Government of Burkina Faso, seeking at least A$180 million in damages following the expropriation of its flagship Sanutura Project. The company, which alleges significant financial harm due to the government’s actions and inactions, filed its Request for Arbitration (RFA) with the International Centre for Settlement of Investment Disputes (ICSID), part of the World Bank Group.
The Sanutura Project, a key asset in Sarama’s portfolio, was seized by the government in a move that Sarama claims violated international investment agreements. After attempts to resolve the matter through a 60-day consultation period failed, Sarama said it had no choice but to escalate the dispute to arbitration. The government of Burkina Faso reportedly did not respond to the company’s Notice of Intent to pursue claims, leaving negotiations at a standstill.
In its RFA submission, Sarama outlines its preliminary case while laying the groundwork for a detailed assessment of damages. A preliminary estimate has pegged the company’s financial loss at no less than A$180 million, but Sarama plans to engage a quantum expert to conduct an independent evaluation as proceedings progress. The formal arbitration process, governed by ICSID’s enforceable legal framework, will now move forward to determine the outcome of the claim. 
To support the legal proceedings, Sarama has secured A$6.7 million in non-recourse litigation funding, which will cover the costs of arbitration. The company has also enlisted the services of Boies Schiller Flexner (UK) LLP, a leading international law firm specializing in high-stakes investment disputes. The firm’s experience in representing mining and resource companies in arbitration cases is expected to strengthen Sarama’s position as it navigates the complex legal battle.
Sarama pointed to previous ICSID arbitration outcomes involving mining companies as evidence of its confidence in the process. Recent cases, such as those brought by Indiana Resources and GreenX Metals, resulted in significant awards of A$180 million and A$490 million, respectively, in favor of the claimants. The company believes its case is similarly strong, given the economic damage caused by the expropriation of Sanutura, a project with substantial gold production potential.
