PERTH (miningweekly.com) – The government of Tanzania has reportedly lodged a request with the International Centre for Settlement of Investment Disputes (ICSID) to annul a $109.5-million award to ASX-listed Indiana Resources.
The ICSID earlier this month closed arbitration proceedings between Indiana Resources, its joint venture partners Ntaka Nickel Holdings, Nachingwea UK and Nachingwea Nickel, and the Tanzanian government, with a tribunal unanimously finding that the government of Tanzania in 2018 breached the UK-Tanzania Bilateral Investment Treaty by the “unlawful expropriation” of the Ntaka Hill retention licence.
Indiana Resources subsequently issued a letter of demand for $113.6-million to the Tanzanian government.
However, Indiana Resources on Friday said that the Tanzanian government was now appealing to have the award set aside.
“It is pleasing that Tanzania has moved swiftly to lodge their request to annul the Award instead of waiting the full 120 days which was available. Indiana remains extremely confident of its position and an initial review by our legal representation suggests Tanzania will not be able to meet the requirements for the annulment,” said Indiana Resources executive chairperson Bronwyn Barnes.
“ICSID will now constitute the Panel to hear the annulment proceedings and our legal representatives will now move to respond to this latest development. We look forward to reporting further updates to our shareholders.