Tag Archives: FSIA

Case of the Day: Nanko Shipping v. Alcoa

The case of the day is Nanko Shipping USA v. Alcoa, Inc. (D.D.C. 2015). The Republic of Guinea is a major source of bauxite, the world’s main source of aluminum. In the past 50 years, the Compagnie des Bauxites de Guinee, owned by Guinea and by Halco Mining, Inc., has produced more than 600 tons of bauxite for export. The bauxite has been used to produce 150 million tons of aluminum, worth more than $400 billion. Guinea, which had the right to ship half of the bauxite CBG mined under a contract with Halco, had a contract with Nanko Shipping Guinea, under which Nanko would exercise Guinea’s right to ship the bauxite. Nanko and its parent company, Nanko Shipping USA, as well as its principal, Mori Diane, sued Halco and Alcoa, which it claimed was an alter ego of Halco (and, with Rio Tinto, majority owner of Halco), alleging that Nanko was a third-party beneficiary of the contract and that Halco and Alcoa had refused to allow Nanko to ship the bauxite. Alcoa moved to dismiss for failure to join an indispensable party, namely Guinea.
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