Tanzania has agreed to pay Australian mining company Indiana Resources US$90 million (about Tsh 237 billion) to settle a long-standing dispute over the Ntaka Hill Nickel Project. This issue began nearly seven years ago when Tanzania cancelled Indiana Resources’ license for the project in January 2018.

The International Centre for Settlement of Investment Disputes (ICSID) ordered Tanzania to pay over US$109 million to a group of companies led by Indiana Resources. This compensation was for the seizure of the nickel mine project in 2018. An ICSID tribunal ruled that Tanzania had breached the UK-Tanzania Bilateral Investment Treaty by seizing the Ntaka Hill Project from UK-registered Ntaka Nickel Holdings, Nachingwea UK, and Tanzania-registered Nachingwea Nickel.

The settlement will be paid in three installments. The first installment of US$35 million has already been received by Indiana Resources. The second payment of US$25 million is due by October 25, 2024, and the final payment of US$30 million is scheduled for March 30, 2025.

The initial payment will cover legal, taxation, and administrative expenses incurred by Indiana Resources. Any remaining funds will be reserved for potential future legal actions if Tanzania fails to make the remaining payments on time.

Besides covering costs, Indiana Resources plans to distribute a portion of the settlement funds to its shareholders. The first distribution is expected to take place in December 2024, with a second distribution anticipated in the second quarter of 2025.

Additionally, the company will use some funds to advance its exploration projects in South Australia. Executive Chair Bronwyn Barnes expressed satisfaction with the settlement, highlighting it as a positive step demonstrating Tanzania’s commitment to resolving issues with international investors.

This agreement not only ends a lengthy dispute but also saves both Tanzania and Indiana Resources considerable time and costs associated with further legal battles.