Issue #37 : Don’t Blow Me Away!
Happy Chinese New Year!
While you're busy feasting, we here at OIA are dropping in to bring you the latest the 🌶 headlines in APAC:
Australia: South32 ADR initiates legal proceedings against battery metals producer IGO Ltd
Japan: Japan's first lawsuit over racial profiling has been filed with the Tokyo District Court
Ling Yah
P/S: Know of any interesting seminars happening? Drop us a note at editor@overheard.asia!
₩ 1 Trillion Dispute
Make it stand out
Whatever it is, the way you tell your story online can make all the difference.
Let’s talk about a ₩ 1 trillion (USD 747 million) ISDS mining dispute brewing between a state-owned Korean entity and Panama.
🍿 What Happened?
In 2009, state-owned Korea Mine Rehabilitation and Mineral Resources Corp (KOMIR) acquired 10% of Minera Panamá, a subsidiary of the Canadian First Quantum Minerals. Minera Panama operates Cobre Panama, one of the world’s largest copper mines opened in the last decade, with 3 billion tonnes of proven reserves.
KOMIR commenced commercial production in the same year & recorded profits of ₩ 49.5 billion (2021) and ₩ 145.2 billion (2022).
However back in December 2023, Panama’s Supreme Court declared that the mine would be closed. It ruled that:
The mining business contract that would provide Minera Panama with at least 20 years of mining was unconstitutional; and
There were environmental and human rights concerns in the local community.
👀What Now?
KOMIR is seeking an investor-state dispute settlement against Panama for ₩ 1 trillion for the closure of the Cobre Panamá mine.
Reliance’s Failed SICC Challenge
You can’t have your cake and eat it.
🍿 What Happened?
China’s Shanghai Electric Group (“SEC”) signed a USD 1.3 billion contract with the UK affiliate of India’s Reliance Infrastructure for the Sasan Ultra Mega coal-fired power plant in Madhya Pradesh.
In 2019, SEC filed for arbitration and sought for payment of USD 135 million for equipment that it claimed to have been purchased by Reliance but had yet to be paid.
In December 2022, a SIAC tribunal passed an unanimous arbitral award in favour of SEC against Reliance, with Reliance being required to pay ~USD 146.3 million with interest to SEC pursuant to its guarantee obligation.
Reliance countered with a challenge in the Singapore International Commercial Court (“SICC”) last year, arguing that the tribunal lacked jurisdiction as the arbitration agreement was invalid and marred by fraud, and that the award should be set aside on public policy grounds (“SICC Challenge”).
👀 What Now?
On 31 January, the SICC rejected Reliance’s SICC Challenge, claiming that Reliance had waived its right to bring jurisdictional objections by failing to raise the allegations during its arbitration with SEC.
Don’t Blow Me Away!
In March 2019, Malaysia-based Sapura Energy Bhd won a contract to transport and install offshore wind turbine substructures at the Yunlin Offshore Wind Farm in Taiwan (“Contract”).
However, Sapura terminated the Contract citing technical and operational issues in February 2023.
Following Sapura’s abrupt exit, Yunneng Wind Power Co Ltd served a request for arbitration in Germany to Sapura and its wholly-owned subsidiary, Sapura Offshore Sdn Bhd (“SOSB”) on 29 December 2023.
Yunneng claims that SOSB failed to comply with the agreed schedule under the Contract and failed to deploy the installation vessels required to conduct the installation of certain structures on time.
Yunneng seeks:
Liquidated damages of € 22.48 million;
Further proven damages of € 7.49 million; and
An award declaring that SOSB and Sapura Energy are jointly and severally liable towards it for all further proven delay damages allegedly suffered in excess of € 29.97 million.
👀 What Now?
Sapura is required to respond to Yunneng’s request for arbitration by 7 March 2024 under the German Arbitration Institute rules.
Spotlight: Nathaniel Lai
What is your current role?
I am practising as an independent advocate and counsel at Duxton Hill Chambers in Singapore, focusing on international arbitration and civil litigation. Most recently I have been working on international arbitrations seated in Singapore, Hong Kong and London, and advising on a number of cross-border litigations. I spend a lot of time in Hong Kong as that is a big part of my practice, and will be guest lecturing a course on commercial arbitration at CUHK next month.
What is your proudest achievement?
Professionally, my proudest recent achievement was successfully defending a client in a large US$200 million arbitration. A lot was riding on that case for the client, not least because of the amount in dispute, so we really pulled out all the stops.
The case involved disputed issues that turned on very technical industry knowledge as well as points of New York law, and I am happy to say that working together as a team with lawyers from across the globe and with different specialties so that as a legal team we could provide the best expertise on each area to the client was one of the highlights of my career.
If you weren't a lawyer, what would you be?
I want to say I would be exercising or reading or picking up a hobby, but most likely I’ll be squeezing in an extra meal into each day. Maybe between lunch and dinner.
If you had 25 hours in a day, what would you do with the extra hour?
Maybe a travel and food vlogger? There is so much to see in the region and around the world, and I think it would be really fun to meet people from different backgrounds and living different lifestyles and helping to tell their stories.
Your favourite food haunt is...?
There are too many to name! Off the top of my head I would say Zion Riverside Food Centre across the street from Great World City. The food is great, as is the atmosphere, and it’s along the river so you can take a stroll after to Robertson Quay for a drink or dessert.
I also like Sing Heung Yuen in Sheung Wan, Hong Kong. I used to live right above them and would go there for breakfast. They serve up a comforting bowl of tomato soup noodles that’s perfect for when the weather gets chilly, and they’re also one of the last dai pai dongs in Hong Kong. Do give it a try if you are visiting the city.
Note: Edited for clarity & brevity.
Food Feature
Kuala Lumpur is a melting pot of great food and you'll find different communities existing in different pockets of the city.
Bon Ga Korean BBQ Restaurant is located smack in the middle of a vibrant Korean community in Mont Kiara and is very well known for their BBQ and Gajang Gejang (raw marinated crab) - the latter is very delicious, with meat that falls off the moment you start slurping! But make sure you order rice to accompany it as it's quite salty.
Bonus: It always comes with a generous range of banchan (Korean tapas) that you can refill x1 times!
Details: Google Maps, TripAdvisor, Facebook
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