In a significant move to resolve a protracted legal conflict, Tanzania has agreed to a $90 million settlement with Australian mining firm Indiana Resources. This decision comes after a lengthy arbitration process at the International Centre for Settlement of Investment Disputes (ICSID).
The settlement, finalized on July 29, 2024, addresses the earlier ICSID award of $109 million issued in July 2023. This award stemmed from a ruling that Tanzania had improperly seized Indiana’s nickel mining license. Despite the settlement falling short of the full $109 million, it represents a strategic move by Indiana to avoid further litigation costs, which had pushed the claim to $121 million due to accruing interest.
The payment will be made in three stages: Tanzania has already disbursed $35 million, with an additional $25 million expected by October 25, and the final $30 million by March 2025. Indiana Resources reserves the right to resume annulment proceedings if Tanzania fails to meet these payment milestones, potentially leading to asset seizures in jurisdictions aligned with the World Bank.
Earlier in July, Indiana Resources requested a temporary trading suspension on the Australian Securities Exchange, anticipating the settlement’s finalization.
This agreement marks the second instance of Tanzania resolving a mining-related arbitration case following the revocation of licenses under the administration of former President John Magufuli in 2018. In October 2023, Tanzania settled a similar dispute with Canadian firm Winshear Gold Corp for $30 million. Currently, Canadian company Montero Mining and Exploration Ltd is also in arbitration with Tanzania over a $67 million claim related to a rare earth element project.
The Magufuli administration’s actions were driven by new mining regulations aimed at retaining greater control over Tanzania’s mineral wealth.
