lawsuit?it caught my ear during the conference call about a lawsuit maa is settling. i think it was in that jennings report that was posted where it was revealed as a 26 million dollar lawsuit, which was being settled at a "reasonable" level. the following two articles shed a bit of light on what the hell they are talking about, but not all that much.
Africa mining intelligence, march 4:
The restructuring of MagIndustries into a company focused onproduction of potash rather than on manganese alloys has caused some“collateral damage”. One victim is Christian Okouna, directorof Mag Alloy Congo SA. After the dissolution of Mag Alloy and thegroup’s reconstitution in four divisions: Mag Minerals, Mag Energy, MagMetals and Mag Forestry, it seems that Okouna was fired summarily during January. Okouna, who was unhappy with the terms of his departure, went so far as to take out a lawsuit against MagIndustries on February 9.
The global crisis has left MagIndustries, a project that has been inthe embryonic phase for over a decade, in a difficult position. Likemany mining companies, its stock price has collapsed, making projectfinancing extremely difficult. The group has in fact secured a USD 600million credit line with BNP Paribasas lead manager, but the syndication was valid if MagIndustriescontributed USD 80 million from its own resources. But its currentstock market standing does not really allow it to issue new shares toraise that kind of cash without totally diluting its capital. AfricaMining Intelligence was unable to reach MagIndustries at the time ofgoing to press.
and then a follow up article, march 18
Following the publication in our last edition (AMI N°198) of the article “MagIndustries Parts Ways with Christian Okouna”, Christian Okounasent us the following letter: “Ever since I assumed my duties asGeneral Manager [of MagAlloy Congo SA], I have constantly beendriven bythe objective ofkeeping a fairbalance between the interests of thegroup that I was representing and those of the Republic of Congo. Thiswas in the spirit of ensuring an equitable partnership (…). At first,my statements did not bother anyone as it benefited all the parties,the Republic of Congo and the MagIndustries group. However differencesgrew extensively during September 2008, in particular with regard tothe inauguration ceremony of the woodchip plant (operated by Eucalyptuset Fibres du Congo, one of the group’s Congolese subsidiaries) and theceremony for laying the first stone of the potash plant in Pointe-Noire.
On that subject, the group’s wishes were to have the President ofthe Republic proceed with the inauguration ceremony –the said plantthat could only guarantee 12direct jobs and a few other indirect jobs.(…) Being aware of the group’s financial difficulties and bearing inmind the political agenda of the country, I was against involving thePresident in an adventure with an uncertain outcome. My concern forfairness was perceived by the main facilitators of the group as a standin favour of my country. Following this, MagIndustries isolated me fromall the decision-making centres and decided to dissolve the MagAlloyCongo SA subsidiary (…) without giving me notice. I did not receive aletter of dismissal. Indeed, the status that I held in the group didnot allow for such a procedure. However, the process of our separation- which took place in December 2008- (…) violated my rights repeatedly.I decided to take the matter to court after attempts by my lawyers inParis and Brazzaville to find an amiable solution. “