BVI Court Hands Down Landmark Judgments in Gerald Metals Dispute

On 16 July 2025, Mithani J handed down three significant judgments in the BVI Commercial Court in Global Mining and Gerald Metals v China National Gold Group BVIHCM 2023/0070, a long-running dispute between Global Mining Development L.P. (“Global”), Gerald Metals LLC (“Gerald”), (subsidiaries of Gerald Group), and China National Gold (“CNG”).

The dispute concerns the ownership and control of Soremi Investments Limited (“SIL”), a company owning a copper-lead-zinc mine in the Republic of Congo through its local subsidiary Société de Recherche et d’Exploitation Minière (“SOREMI”). In two partial final arbitral awards (the “Awards”), a Hong Kong-seated HKIAC Tribunal had recognised Global as the rightful owner of 100% of SIL, the BVI-incorporated holding company for the project. The Awards having not been voluntarily complied with, they were registered as New York Convention Awards in the BVI. Global and Gerald Metals successfully defeated a challenge by CNG in the BVI Court in April 2024 – see: Ali Malek KC and Judy Fu succeed in BVI Gerald Metals dispute.

In breach of undertakings, CNG is alleged to have caused the wrongful disbursement of more than $100 million from SIL’s accounts. Gerald Metals sought and successfully obtained interim relief, with the BVI Court issuing freezing injunctions, ancillary disclosure, and (for the first time) a mandatory injunction compelling the repatriation of wrongfully dissipated monies in support of the enforcement of a foreign arbitral award.

By this trio of judgments by Mithani J:

• CNG, SOREMI, and Mr Cheng Shenghong (CEO of SOREMI) have each been found in very serious contempt of Court. This is the first time a BVI decision for contempt has involved the misuse of foreign courts to obtain foreign injunctions preventing compliance with a BVI injunction. The contemnors’ conduct was described as “a deliberate and calculated course of action”, which was an “attempt to make a mockery of the processes of the Court” that was “deceitful and disgraceful”.
• Among other sentences, CNG has been fined a record $2.5 million for its role in defying the Awards and the orders of the BVI Court. This is the highest fine for contempt levied against a party in the BVI.
• CNG’s attempt to discharge the interim relief granted was dismissed.
• Global has achieved rectification of the share register of SIL, a BVI company, pursuant to s. 43 of the BVI Business Companies Act.

The trio of judgments are available here: (Rectification), (Contempt) and (Discharge). They will be of interest to all practitioners involved in the enforcement of arbitral awards, demonstrating the strategies available and the robustness of the BVI Court as a pro-enforcement jurisdiction.

Peter de Verneuil Smith KC and Judy Fu were instructed by Harneys (Jonathan Addo and Natasha Guthrie), and continue to represent Gerald Metals in the BVI. They also continue to represent Gerald Metals in the ongoing HKIAC arbitration, together with a 3VB team comprising of Ali Malek KC, Victor Steinmetz, and Amy Gregg with Gibson Dunn and Crutcher (Penny Madden KC and Sam Firmin).

Ali Malek KC and Peter de Verneuil Smith KC have also been granted ad hoc admission to represent Gerald Metals in the Hong Kong Court of First Instance, including in CNG v G & G [2024] HKCFI 575 and AAA v BBA [2024] HKCFI 699.