Tanzania has agreed to pay US$27 million to a Canadian mining company to settle an ICSID case related to revoked mining licenses. This marks the third settlement the government has achieved with investors facing similar disputes, reflecting ongoing tensions in the mining industry.
Tanzania has reached a settlement agreement with a Canadian mining company, agreeing to pay US$27 million to resolve an International Centre for Settlement of Investment Disputes (ICSID) case. This settlement pertains to the annulment of mining licenses previously held by the company and marks the third such resolution the Tanzanian government has finalized with investors affected by similar permit cancellations. The ongoing legal disputes underscore significant tensions between the government and international mining firms operating in the country.
The backdrop to this settlement is rooted in Tanzania’s recent regulatory measures, which have seen the government revoking numerous mining licenses while seeking to increase its share in mining revenues. These actions have led to multiple legal disputes initiated by affected foreign investors, prompting the need for arbitration and settlements to mitigate ongoing tensions. As such, Tanzania’s agreement to settle this case highlights the state’s approach to managing its relationships with international mining corporations and its commitment to resolving disputes amicably.
In summary, Tanzania’s decision to settle the ICSID case with a Canadian mining company for US$27 million illustrates its ongoing efforts to resolve disputes arising from revoked mining licenses. This agreement represents the third settlement with investors countering similar issues. The government’s approach reflects a broader strategy to address international investor concerns while drawing a line under past contentious decisions affecting its mining sector.
Original Source: globalarbitrationreview.com
