Press Statement
Following a two day hearing in the Queensland Supreme Court earlier this month, Mr Justice Ambrose today dismissed the application by the Papua New Guinea government for leave to appeal the arbitration award made last October in Sandline's favour. The government has also been ordered to pay Sandline's costs.
Now the Court has confirmed that the arbitration award is final and binding on Papua New Guinea, Sandline would hope, although it does not expect, that the government will behave responsibly and meet its liability without wasting further costs in a futile attempt to delay the inevitable.
Unless payment is made immediately, Sandline will step-up its worldwide action to recover the full claim, plus interest and costs, which now exceed a total sum of US$25 million.
Sandline knows where Papua New Guinea's assets are. The State can run but it cannot hide. No amount of political posturing by Mr Skate will help his country avoid this liability.
Papua New Guinea has a contractual commitment which has now been upheld both by an International Tribunal and the Supreme Court of Queensland. Mr Skate should accept defeat gracefully.
It does the international standing, creditworthiness and reputation of Papua New Guinea no good to try and avoid formal obligations of this kind.