Tanzania has completed its US$27 million settlement with Montero Mining and Exploration Ltd. (TSX-V: MON) by delivering the final installment of US$7 million, marking the conclusion of the dispute over the expropriation of the Wigu Hill rare earth element project.
This payment is expected to bring the arbitration before the International Centre for Settlement of Investment Disputes (ICSID) to a formal close.
Tanzania and Montero had jointly requested the suspension of ICSID arbitration proceedings after the first settlement payment. Now, with the final installment received, both parties will formally request the tribunal to discontinue the arbitration entirely.
Dr. Tony Harwood, President and CEO of Montero, stated: “I am pleased Montero has timely received the third and final payment of US$7 million from Tanzania.”
With the full settlement received, Montero will now determine the net proceeds after legal and administrative costs and finalize its distribution plans. The company expects to provide an update during Q2 2025.
Montero and Tanzania’s Wigu Hill Dispute
The dispute between Montero Mining and Exploration and the Tanzanian government over the Wigu Hill rare earth element project spans several years.
In 2008, Montero began exploration activities at Wigu Hill, investing approximately CAD$ 15.5 million in the project’s development.
Tensions arose in 2018 when the Tanzanian government canceled Montero’s retention licenses for Wigu Hill, which Montero interpreted as expropriation.
This action prompted Montero to argue that it had created significant value for Tanzania through its investments.
In January 2021, after unsuccessful attempts to resolve the issue amicably, Montero initiated international arbitration proceedings against Tanzania through the International Centre for Settlement of Investment Disputes (ICSID).
This was done under the bilateral investment treaty between Canada and Tanzania, which protects investment rights. The company claimed damages exceeding CAD$ 90 million, including interest.
In November 2024, Montero successfully negotiated a US$ 27 million settlement with the Government of Tanzania. The agreed settlement will be paid in three installments.
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