Canadian Firm Wins $2.2M Arbitration Against Brazilian Mining Company

NEW YORK, NY – November 17, 2025

International Win, Domestic Challenges

Auxico Resources Canada Inc. (CSE: AUAG) has been awarded approximately $2.2 million USD by the International Court of Arbitration (ICC) in a dispute with JBNX Holding e Participações LTDA (JBNX) over a breached 2020 manganese ore purchase agreement. The win marks a significant financial recovery for the Canadian mineral exploration firm, but the process of enforcing the award in Brazil is expected to be complex and potentially costly. The dispute arose when JBNX failed to deliver 10,163 metric tons of ore for which Auxico had already paid.

This case highlights the risks and rewards inherent in international trade, especially within the mining sector, and raises questions about contract enforcement in emerging markets. “International arbitration is often seen as a reliable mechanism for resolving disputes,” said one legal source familiar with cross-border litigation. “But turning a favorable award into actual funds requires navigating the legal complexities of the defendant’s jurisdiction.”

A David and Goliath Battle in the Manganese Market

The arbitration award represents a substantial win for Auxico, a junior exploration company with a market capitalization of approximately $11.52 million CAD. Facing off against a larger Brazilian mining company, Auxico successfully argued its case before the ICC, securing full compensation for the undelivered ore. The company intends to reinvest the funds into its exploration projects in Colombia and Bolivia, focusing on strategic materials like niobium and rare earth elements.

However, the manganese market is currently facing challenges including fluctuating prices and potential supply disruptions. Industry analysts indicate that while demand for manganese remains strong—particularly from the steel industry and, increasingly, from the electric vehicle battery sector—oversupply and logistical bottlenecks continue to create volatility. “The manganese market is very dynamic,” explained one commodity trader. “Factors like geopolitical instability, mining regulations, and the emergence of new battery technologies can all have a significant impact on prices.” The recent disruption to production at a major Australian mine due to a tropical cyclone underscored the fragility of global supply chains.

Navigating Brazil’s Legal Landscape

While the ICC award is legally binding, securing actual payment from JBNX requires enforcement in Brazil, a process that presents several hurdles. Brazil's legal system, while generally considered arbitration-friendly, demands strict adherence to procedural requirements and can be slow and bureaucratic. Auxico must now navigate the process of ‘homologation’ – seeking recognition of the ICC award by Brazil’s Superior Court of Justice (STJ). This involves submitting detailed documentation, translations, and potentially facing legal challenges from JBNX.

Legal experts emphasize that the STJ will scrutinize the award to ensure it doesn’t violate Brazilian public policy or sovereignty. “The STJ isn’t re-examining the merits of the case,” explained one international law specialist. “But they are verifying that the arbitration process was fair and that the award doesn’t conflict with Brazilian legal principles.” A key concern is ensuring that JBNX was properly served with notice of the arbitration proceedings. Any procedural flaws could lead to delays or even rejection of the award. The STJ's decision can significantly influence the enforcement process, so Auxico’s legal team will need to meticulously prepare its submissions.

Furthermore, Brazil’s emphasis on national sovereignty in recent legal rulings may add another layer of complexity. The country’s Supreme Federal Court has signaled a growing reluctance to automatically recognize foreign legal decisions. While this doesn’t necessarily preclude enforcement, it highlights the need for Auxico to carefully frame its arguments and demonstrate that the arbitration process fully respected Brazilian legal principles.

Enforcing the award is expected to be time-consuming and expensive, requiring Auxico to engage experienced Brazilian legal counsel and potentially incur significant court fees. The success of this endeavor hinges on navigating the intricate details of Brazil’s legal framework and effectively addressing any challenges raised by JBNX.