Tanzanian Govt Ordered to Pay Australian Firm Over U.S.$100 Million
The International Center for Settlement of Investment Disputes (ICSID) reportedly ordered the Tanzania government to pay more than US$109-million to a group of companies fronted by Australian miner Indiana Resources Ltd in compensation for the controversial 2018 expropriation of a nickel mine project.
An ICSID ad hoc tribunal on July 14 ruled that the government breached the UK-Tanzania Bilateral Investment Treaty when it seized the Ntaka Hill Project held by UK-registered Ntaka Nickel Holdings and Nachingwea UK along with Nachingwea Nickel, a Tanzania-registered firm, reports The East African .
The total award amount of US$109.5 million includes interest already accrued to the claimants plus US$3.859 million in legal costs to the claimants and the ICSID’s own costs.
Under ICSID rules, Tanzania has 120 days to file an application for cancellation of the order.
There are growing concerns in Tanzania that this enforcement may including moving to sixteen aircraft operated by national carrier Air Tanzania, a ploy that was tried before by other winners of international arbitration proceedings against Tanzania and which Indiana Resources previously threatened to pursue.
