Tanzania, Canada firm in ‘conditional’ deal over $96m gold suit

Tanzania, Canada firm in ‘conditional’ deal over $96m gold suit

The East Africa | 23rd September 2023

By Bob Karashani

Canadian firm Winshear Gold Corp has announced the suspension of its multimillion-dollar arbitration proceedings against Tanzania over a mining licence dispute dating back to 2018, saying it had reached a “conditional settlement agreement” with Dodoma.

But, in a September 19 statement, the company cautioned that there was “no guarantee that the conditional settlement agreement will be concluded” and said it would report further developments “as they occur.”

Winshear has been claiming at least $96 million worth of damages through the International Court for the Settlement of Investment Disputes (ICSID) for the revocation of its SMP Gold Project licence in southwestern Tanzania by the John Magufuli administration.

The ICSID confirmed on its website that the case had been suspended “pursuant to the parties’ agreement, but no further details of the pact were immediately available from any of the parties involved.

The tribunal concluded formal hearing of the case in February and a final verdict was expected before year-end.