Tanzania has agreed to a $90-million settlement with ASX-listed Indiana Resources, resolving a dispute arbitrated by the International Centre for Settlement of Investment Disputes (ICSID), a division of the World Bank.
Indiana Resources is the majority shareholder in UK-incorporated Ntaka Nickel Holdings and Nachingwea UK, as well as Tanzania-incorporated Nachingwea Nickel.
Together, these entities managed the joint venture involved in the arbitration against Tanzania.
The settlement will eliminate the need for costly and time-consuming enforcement efforts, bringing an end to a nearly seven-year-long dispute.
“Following the cancellation of our license for the Ntaka Hill nickel project in January 2018, we have pressed our claim for compensation for the loss of our investment in Tanzania,” stated Indiana Executive Chairperson Bronwyn Barnes.
The $90-million payment, representing 82.5% of the original $109-million ICSID award, will be made in three installments.
The first installment will cover litigation funding and legal costs, with additional funds retained for potential annulment and/or arbitral proceedings and enforcement if Tanzania fails to pay subsequent installments. Distribution among the claimants is currently being negotiated, with further announcements to follow.
Indiana expects the first distribution to shareholders in December, with the second in the second quarter of 2025.
Barnes expressed confidence in Tanzania’s commitment to the settlement terms, stating, “This settlement clearly demonstrates Tanzania’s commitment to work with international mining investors to resolve the historical dispute between the parties.”
Barnes also highlighted that if Tanzania defaults on any subsequent payments, Indiana retains the right to recommence the annulment process at ICSID and pursue enforcement activities, potentially seizing Tanzanian assets in any World Bank member jurisdiction.
Meanwhile, Indiana Resources plans to immediately advance exploration activities at its Central Gawler Craton project in South Australia.
