Indiana Resources has won a long-running dispute against the Tanzanian Government in an international civil case.
Shares in microcap explorer Indiana Resources (IDA) were rocketing on Tuesday morning as the company confirmed it has won $109 million from the African nation of Tanzania as part of an international civil settlement.
A Tribunal part of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) has ordered the Tanzanian government to pay Indiana Resources the sum following the seizure of a nickel mine.
The Tribunal found on 14 July that Tanzania had breached the UK-Tanzania Bilateral Investment Treaty when it seized the Ntaka Hill Nickel Project in early 2018.
Ntaka Hill was held by UK-registered Ntaka Nickel Holdings and Nachingwea UK, as well as a Tanzania-registered entity called Nachingwea Nickel. Those three entities acted as claimants in the case.
Indiana Resources, in turn, is a 62.4% majority shareholder of the combined holdings of the claimants, and Indiana was responsible under JV agreements to handle arbitration.
“The amount of the Award reflects the substantial investment that has been lost by shareholders through Tanzania’s unlawful expropriation of Ntaka Hill,” Indiana Resources Executive Chairman Bronwyn Barnes said.
“The ICSID Convention has been ratified by 158 Member States of the World Bank – including Tanzania. This means that any award issued by an ICSID tribunal is enforceable in any one of those 158 member States as if it were a judgment of one of their own courts.”
Tanzania was also ordered to pay the ICSID’s legal costs, and part of the US$109.5m payment to Indiana includes compound interest.
UK-based international law professional Litigation Capital Management Limited will ultimately be paid US$15m of the sum. That amount could climb further over the next 120 days.
Tanzania retains a right to appeal the decision in that same time frame, but Indiana is confident any such challenge will fall dead in the water.
The seizure of Ntaka Hill occurred under the Presidency of former leader John Magufuli, a controversial figure.
His successor, Samia Suluhu Hassan – Tanzania’s first female leader – has since made efforts to craft a more foreign-investment-friendly atmosphere, including personally meeting with the USA’s Kamala Harris in March this year.
Indiana Shares were up 85% at 12:10pm AEST trading at 7.6 cents on Tuesday.
Source: The Market Herald