Key points
- Diamond Fields International Ltd. has invoked binding arbitration against Red Sea joint venture partner Manafa International Commerce Company of Saudi Arabia.
- Manafa has purportedly cancelled the joint venture agreement, alleging DFI failed to perform its obligations.
- DFI disputes this, stating it has performed and that Manafa failed to meet its obligations under the agreement.
- Arbitration will proceed under the rules of the International Centre for Dispute Resolution before a single arbitrator, though DFI says it is open to an amicable resolution.
Diamond Fields International Ltd. has invoked binding arbitration to resolve a dispute with its Red Sea joint venture partner, Manafa International Commerce Company of Saudi Arabia, over Manafa’s compliance with its obligations under the joint venture agreement (refer to DFI news release dated June 4, 2010).
Manafa has purportedly cancelled the agreement alleging failure by DFI to perform. DFI has responded that it has performed and that Manafa has failed to meet its obligations to DFI and the joint venture under the agreement. DFI has invoked binding arbitration pursuant to the agreement. Arbitration is to be pursuant to the rules of arbitration of the International Centre for Dispute Resolution before a single arbitrator. DFI has however, informed Manafa that it is prepared to attempt to resolve the dispute amicably without the need for binding arbitration.
