Tanzania Settles $96million dispute with Canadian Firm under conditions
Dar es Salaam
- Winshear Gold Corp. and Tanzania reached a conditional settlement in a longstanding mining license dispute.
- Uncertainty remains as the finalization of the settlement agreement is not guaranteed.
- Tanzania faces multiple international mining license challenges.
However, the business stated in a statement on September 19 that there was "no guarantee that the conditional settlement agreement will be concluded" and that it would update readers on any events "as they occur."
Winshear has been suing the John Magufuli government for the termination of its SMP Gold Project license in southwest Tanzania, seeking at least $96 million in damages through the International Court for the Settlement of Investment Disputes (ICSID). No other information on the arrangement was immediately available from any of the parties involved, but the ICSID acknowledged on its website that the matter had been halted "pursuant to the parties' agreement.
A final decision was anticipated before the end of the year after the tribunal's official hearing in the case was ended in February.
As part of new mining regulations that invalidated all retention licenses during the Magufuli administration, Winshear is one of three international firms requesting compensation from Tanzania through the ICSID. These companies experienced similar mining license expropriations.
Tanzania has subsequently filed a request to have the tribunal's July decision of more than $110 million in damages to Australian company Indiana Resources revoked.
A hearing date has not yet been established, despite the fact that the ICSID has already announced the members of a new ad hoc committee that will examine the annulment case.
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