Market Screener | 10 August 2023
Indiana Resources Limited - Publication of ICSID Award
Indiana Resources Limited (ASX : IDA) (’Indiana’ or the ’Company’) provides the following update on the dispute with the United Republic of Tanzania (’Tanzania’) which was the subject of arbitration through the International Centre for Settlement of Investment Disputes (’ICSID’).
As the majority shareholder in Ntaka Nickel Holdings Ltd (’NNHL’), Nachingwea UK Ltd (’NUK’) (both incorporated in the United Kingdom), and Nachingwea Nickel Ltd (’NNL’, incorporated in Tanzania) ; together known as the ’Claimants’, Indiana is the manager of the Joint Venture and responsible for activities relating to the arbitration against Tanzania.
The full Award documentation from the ICSID Tribunal that unanimously ordered Tanzania to pay more than US$109.5million plus costs for the unlawful expropriation of the Ntaka Hill Nickel Project is now available on the Company’s website indianaresources.com.au. Tanzania previously objected to the publication of the Award on ICSID’s website but given Tanzania’s recent request for annulment of the Award, the Company has made the Award available to ensure shareholders have an accurate and correct understanding of the basis for the Award.
Commenting on the publishing of the ICSID Award, Executive Chairman Bronwyn Barnes said : ’I am very pleased that shareholders can now read for themselves the findings of the Arbitral Tribunal in the Award delivered on 14 July 2023. It is very clear from the Award document that the Claimants’ investment in Tanzania was unlawfully expropriated on 10 January 2018, and the amount of compensation owed by Tanzania to the Claimants for loss of their investment is well considered and appropriate given the circumstances surrounding the expropriation. It is also clear from the Award document that Tanzania’s objections and arguments during the course of arbitration were dismissed by the Tribunal.
’States have overwhelmingly and historically complied voluntarily with the payment terms of awards under the ICSID Convention. We regard Tanzania’s recent request for an annulment of this Award as an attempt to reduce international embarrassment around the Award and the historical actions of the Government that resulted in the loss of Ntaka Hill. The Award document from ICSID clearly demonstrates that our claim for compensation was justified and appropriate, particularly as the Project site is no longer vacant and is now being illegally mined with the knowledge of the government.’
Background to the Award
LALIVE and Boies Schiller Flexner LLP, two international law firms that specialise in international arbitration, represented the Claimants in the ICSID arbitration process. A litigation funding facility for US$4.65m is in place with Litigation Capital Management Limited (’LCM’), a firm listed on the Alternative Investment Market (’AIM’) of the London Stock Exchange. This funding facility covers legal costs incurred in relation to the BIT Arbitration up to the Award and is repayable on the successful enforcement of the Award against Tanzania. The current total repayment amount to LCM under the funding facility is approximately US$17m. This amount will continue to increase until the facility has been repaid and closed.