Two Abuja-based Chinese companies, Lideal Mines Limited and Wangwang Mining (China) Co. Ltd, together with the latter’s shareholders, Wang Youfeng, Zeng Yusang, Yu Binbin and Zeng Guodong, are before the Federal High Court in Abuja for alleged breach of contract and fake lithium exploration and mining licence.

The lawyer for Lideal Mines Limited, Abraham Abisoye, filed the case under suit number, FHC/ABJ/CS/1342/2023.

He is seeking general damages in the sum of N10 billion for breach of contract due to the defendants’ alleged misrepresentations regarding their possession of an exploration license and a mining license.

Claims of the applicant

According to the lawyer, the defendants informed his client that although they had obtained all the necessary licenses, they needed machinery to carry out mining activities in an additional agreed area covering “about 32.3 square kilometers.”

He stated that the defendants allegedly sought financial assistance from the plaintiff to finance the mining project, which ranged from RMB 30 million to RMB 40 million, and that the money paid was designated as investment costs.

“The loan facility for investment costs has been mutually agreed for a period of 8 months of mining operations.

“Surprisingly, two months after the commencement of mining, the plaintiff was informed that the purported EXPLORATION LICENSE issued by the Nigeria Mining Cadastral Office in Abuja was fake and the Mining License for the 11 square kilometers claimed to be based on on the Exploration License. it was also fake”, he submitted.

The lawyer added that the plaintiff’s representatives approached the defendants to show them the mining license for which the plaintiff had already invested significantly by purchasing mining equipment; however, they allegedly “refused, failed or neglected to keep their promises under Articles 9.1 and 9.2 of the Agreement.”

A representative of the plaintiff, Cheng Tao Hong, told the court that following the Exploration License and the representations made by the defendants, her company entered into an equity sharing agreement for the lithium materials in the mine site by purchasing a share capital of 30% in Wangwang.

The plaintiff is seeking N10 billion for general damages, among other reliefs.

What happened in court

• At the resumption of the hearing on Monday, Abisoye, for the plaintiff, informed Justice Inyang Ekwo that the defendants’ lawyer approached his client for settlement but later withdrew from the settlement talks.
• He also complained about several changes of counsel by the defendants even before the trial began.
• SN Agbu announced his appearance for Wangwang and another party but said nothing during the proceedings.
• Abisoye informed the judge that the defendant’s lawyer is another new lawyer in the case.
• Abisoye stated that he has two witnesses to support his case.
• The judge responded that while he “does not preclude the parties from settlement,” he set February 18, 19 and 20, 2025 for the hearing.
• The Federal High Court has jurisdiction to preside over mining and exploration litigation.