IN THE MATTER OF AN ARBITRATION UNDER THE RULES OF ARBITRATION OF THE INTERNATIONAL CENTRE FOR THE SETTLEMENT OF INVESTMENT DISPUTES ICSID CASE No. ARB/14/22 BETWEEN: BSG RESOURCES LIMITED Claimant - v - THE REPUBLIC OF GUINEA Respondent CLAIMANT'S MEMORIAL Karel Daele James Libson Mishcon de Reya Solicitors Summit House 12 Red Lion Square WC1R 4QD London Tel: +44 (0) 20 7440 7060 Fax: +44 (0) 20 7831 3487 1 CONTENTS I. INTRODUCTION ........................................................................................................................ 5 1.1 Preliminaries .................................................................................................................................. 5 1.2 Summary of BSGR's claims........................................................................................................... 5 1.3 The nature of the projects at issue in this case ............................................................................... 8 1.4 Related proceedings ....................................................................................................................... 9 1.5 The BSGR Group ......................................................................................................................... 10 II. BACKGROUND FACTS .......................................................................................................... 15 2.1 The geographical areas in question .............................................................................................. 16 2.2 The Guinean opportunity ............................................................................................................. 16 2.3 Prospecting permits over Simandou North and Simandou South ............................................... 18 2.4 The Memorandum of Understanding .......................................................................................... 21 2.5 BSGR group investment in Simandou North and Simandou South ............................................ 22 2.6 Application for and grant of Blocks 1 and 2 Permit ................................................................... 23 2.7 The Base Convention and the Zogota Mining Concession ......................................................... 27 2.8 Joint Venture with Vale .............................................................................................................. 32 2.9 Further investments in relation to Project Zogota and Blocks 1 and 2 ....................................... 34 2.10 Summary of Investments made in Guinea ................................................................................... 35 2.11 The election of Alpha Condé and the campaign against BSGR .................................................. 36 2.12 The Technical Committee "investigation" ................................................................................... 44 2.13 The end game .............................................................................................................................. 46 2.14 Expropriation of BSGR's investments ......................................................................................... 50 2.15 The Measures were politically motivated .................................................................................... 52 III. BSGR'S CLAIMS ...................................................................................................................... 55 3.1 Summary ...................................................................................................................................... 55 3.2 Mining Rights .............................................................................................................................. 56 3.2.1 The Mining Code .......................................................................................................... 56 3.2.2 The Base Convention ................................................................................................... 60 3.2.3 The new 2011 Mining Code ......................................................................................... 66 3.2.4 Conclusions .................................................................................................................. 68 3.3 Infrastructure Rights. ................................................................................................................... 69 2 3.3.1 The BOT Act. ............................................................................................................... 69 3.3.2 The Base Convention as a qualifying development infrastructure project ................... 71 3.4 Breaches of the Investment Code................................................................................................. 75 3.4.1 Breach of Article 5 of the Investment Code ................................................................. 75 a. "Investments carried out by… corporations" ..................................................... 75 b. Indirect expropriation of BSGR's investment in BSGR Guinea ........................ 78 c. The Measures constituted an involuntary taking of BSGR's investments .......... 80 d. The Measures constituted an illegal expropriation ............................................. 86 e. No compensation provided in respect of the expropriation................................ 86 3.4.2 Breach of Article 6 of the Investment Code ................................................................. 86 3.4.3 Breach of Article 30 of the Investment Code ............................................................... 87 3.5 Breaches of the Mining Code ...................................................................................................... 89 3.5.1 Breach of Article 21 of the Mining Code ..................................................................... 89 3.5.2 Breach of Article 22 of the Mining Code ..................................................................... 90 3.5.3 Breach of Article 11 of the Mining Code ..................................................................... 91 3.5.4 Breach of Article 26 of the Mining Code ..................................................................... 91 3.5.5 Breach of Article 41 of the Mining Code ..................................................................... 91 3.6 Breaches of the BOT Act….. ....................................................................................................... 92 3.6.1 Breach of Article 7.1 of the BOT Act .......................................................................... 92 3.6.2 Breach of Article 7.2.2 of the BOT Act ....................................................................... 92 3.6.3 Breach of Article 7.2.7 of the BOT Act ....................................................................... 93 3.6.2 Breach of Article 7.2.12 of the BOT Act ..................................................................... 93 3.7 Breaches of International Law ..................................................................................................... 94 3.8 Flaws in the process by which Guinea decided to implement the Measures ............................... 96 3.8.1 The review process was ultra vires ............................................................................... 97 3.8.2 The review process was unfair, partial and dependent ................................................. 98 a. Composition of the review committees .............................................................. 98 b. The process in which the Technical Committee engaged was unfair............... 100 c. The conclusion was pre-determined ................................................................. 104 3.9 No substance to the corruption allegations ................................................................................ 104 3.9.1 Preliminary observations ............................................................................................ 104 3.9.2 BSGR did not corrupt Guinean officials .................................................................... 107 3 a. The Simandou North Permits, the Simandou South Permits and the Memorandum of Understanding ...................................................................... 107 b. Blocks 1 and 2 Permit ...................................................................................... 109 c. The Base Convention and the Zogota Mining Concession .............................. 111 3.9.3 No involvement of Ms. Mamadie Touré .................................................................... 113 3.9.4 No undue pressure by President Conté ....................................................................... 115 3.9.5 Conclusions ................................................................................................................ 118 IV. JURISDICTION ...................................................................................................................... 119 4.1 Article 25(1) of the ICSID Convention ...................................................................................... 119 4.2 The Dispute is a legal dispute .................................................................................................... 120 4.3 The Dispute arose directly out of an Investment ....................................................................... 120 4.4 The Dispute is between a Contracting State and a National of another Contracting State ....... 121 4.5 The Parties have consented in writing to ICSID Arbitration