{"id":5539,"date":"2024-02-07T23:01:43","date_gmt":"2024-02-07T23:01:43","guid":{"rendered":"https:\/\/economicherald.net\/?p=5539"},"modified":"2024-02-07T23:01:43","modified_gmt":"2024-02-07T23:01:43","slug":"tanzanias-attempt-to-strike-out-indianas-compensation-fails-to-score","status":"publish","type":"post","link":"https:\/\/economicherald.net\/?p=5539","title":{"rendered":"Tanzania\u2019s attempt to strike out Indiana\u2019s compensation fails to score"},"content":{"rendered":"<p>ICSID strikes out most of Tanzania\u2019s grounds for annulling the award of US$119 million to claimants, led by Indiana Resources<br \/>\nTanzania\u2019s annulment attempt can only proceed on one remaining ground<br \/>\nInterest continues to be accrued at ~US$1 million each month until the full amount is paid<\/p>\n<p>\u00a0<\/p>\n<p><strong><em>Special Report:<\/em> Indiana Resources is closer to recovering its historical sunk investment for the unlawful expropriation of the\u00a0Ntaka Hill nickel sulphide project after the ICSID struck out most of Tanzania\u2019s grounds for requesting the annulment of the award.<\/strong><\/p>\n<p>Before it was suddenly taken out of the company\u2019s hands more than five years ago by the Tanzanian Government, Ntaka Hill was an advanced, development-ready asset with an estimated JORC resource of 56.2Mt @ 0.63% nickel, 0.14% copper and 0.02% cobalt for 356,380t contained nickel.<\/p>\n<p>The project has since been developed by other parties.<\/p>\n<p>Arbitration brought about by <a href=\"https:\/\/stockhead.com.au\/company\/indiana-resources-ida\/\"><strong>Indiana Resources (ASX:IDA)<\/strong><\/a><strong>, <\/strong>as the major shareholder and representative of investors in the project, sought compensation relating to the loss of its sunk costs over time spent exploring the project was ultimately successful, with the International Centre for Settlement of Investment Disputes (ICSID) ruling Tanzania unlawfully expropriated the Ntaka Hill licences.<\/p>\n<p>It also ruled the claimants were entitled to compensation of US$112.9m plus additional costs of US$4.2m.<\/p>\n<p>Interest at the rate of ~US$1 million will also accrue each month until Tanzania paid the amount or Indiana seizes Tanzania\u2019s assets to the value of the award, bringing the total amount owned by Tanzania to the claimants to circa US$120 million.<\/p>\n<p>In December 2023, the Tanzanian Attorney General provided a <a href=\"https:\/\/stockhead.com.au\/resources\/us118m-in-compensation-on-the-table-in-indianas-tanzanian-dispute\/\"><strong>letter of confirmation<\/strong><\/a> to ICSID that Tanzania would unconditionally and irrevocably pay the full amount of the Award within 45 days of the final decision on annulment.<\/p>\n<p>\u00a0<\/p>\n<h2><strong>Two down, one to go<\/strong><\/h2>\n<p>The ICSID has now struck down two of three grounds that Tanzania had raised in its application to annul the granted award.<\/p>\n<p>It found that the grounds of manifest excess of powers and failure to state the reasons on which the award is based were manifestly without legal merit, adding that its ruling is not open to challenge, meaning that Tanzania cannot raise them in submissions at the hearing of its annulment application.<\/p>\n<p>As such, Tanzania\u2019s annulment application can now only proceed on its remaining complaint \u2013 namely that the Tribunal seriously departed from fundamental rules of procedure.<\/p>\n<p>The ad hoc committee deciding on Tanzania\u2019s grounds acknowledged that questions about the conduct of the tribunal could not be answered by an analysis of the award on its face and that it should be given the opportunity to present its case and that the claimants will be given the opportunity to rebut the same.<\/p>\n<p>IDA executive chair Bronwyn Barnes declared the ruling to be \u201ca very positive outcome for the claimants\u201d.<\/p>\n<p>\u201cWe have consistently maintained that the documents lodged by Tanzania do not demonstrate that Tanzania will be able to meet the high threshold necessary to annul the Award, and this latest ruling from ICSID reflects that position,\u201d Barnes said.<\/p>\n<p>\u201cTanzania\u2019s request for annulment should be seen for what it is \u2013 an attempt to delay and deny compensation to the claimants for the loss of their investment following the illegal expropriation of the Ntaka Hill nickel project in 2018.<\/p>\n<p>\u201cWe are pleased that the committee has ruled that the majority of Tanzania\u2019s grounds for seeking annulment are manifestly without legal merit.<\/p>\n<p>\u201cIt is our hope that Tanzania will recognise the futility of their current approach to this matter and pay the compensation owed to the claimants under the award so that this matter can finally be resolved.\u201d<\/p>\n<p>\u00a0<\/p>\n<h2><strong>Timetable ahead<\/strong><\/h2>\n<p>Tanzania\u2019s memorial on the annulment will be made on 15 March 2024 with the claimants counter-memorial on 26 April 2024.<\/p>\n<p>Each side will then have their respective replies on 24 May 2024 and 21 June 2024 respectively followed by a pre-hearing organisational meeting within three weeks of the last date \u2013 being the claimants rejoinder on annulment, before a hearing is decided on by both parties.<\/p>\n<p>It is worth noting that each month the process extends, another $1m is added to the award, in the event that the annulment fails.<\/p>\n<p>\u00a0<\/p>\n\n<p><span class=\"mce_SELRES_start\">\ufeff<\/span>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p><em>This article was developed in collaboration with Indiana Resources, a Stockhead advertiser at the time of publishing. <\/em><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p><em>This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.<\/em><\/p>\n<p><span class=\"et_bloom_bottom_trigger\"><\/span><\/p>\n<p>The post <a href=\"https:\/\/stockhead.com.au\/resources\/tanzanias-attempt-to-strike-out-indianas-compensation-fails-to-score\/\">Tanzania\u2019s attempt to strike out Indiana\u2019s compensation fails to score<\/a> appeared first on <a href=\"https:\/\/stockhead.com.au\/\">Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>ICSID strikes out most of Tanzania\u2019s grounds for annulling the award of US$119 million to claimants, led by Indiana Resources Tanzania\u2019s annulment attempt can only <a href=\"https:\/\/economicherald.net\/?p=5539\" class=\"read-more-link\">[more&#8230;]<\/a><\/p>\n","protected":false},"author":0,"featured_media":5540,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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