Ecofin - 29 juillet 2022

Tanzanie : Montero réclame 70,2 millions $ à l’Etat pour expropriation à Wigu Hill

(Agence Ecofin) - En 2017, la Tanzanie a adopté une nouvelle règlementation minière supprimant les licences de rétention. Cette décision a entrainé le retrait des droits miniers de plusieurs compagnies qui, s’estimant lésées, ont attaqué le gouvernement devant le tribunal arbitral de la Banque mondiale.

La compagnie minière Montero Mining réclame 90 millions de dollars canadiens (70,25 millions $) comme dommages et intérêts en réparation du préjudice causé par l’expropriation du projet de terres rares Wigu Hill en 2018. C’est ce qu’a indiqué la compagnie dans un communiqué le jeudi 28 juillet, précisant qu’une demande en ce sens a été déposée en mai dernier devant le Centre international pour le règlement des différends relatifs aux investissements (CIRDI).

C’est en janvier 2021 que la société a initié une procédure d’arbitrage devant le CIRDI, pour contester le retrait de ses droits sur le projet en question. La société affirme y avoir dépensé 15,5 millions de dollars canadiens entre 2008 et 2015, avant de demander une licence de rétention de cinq ans en 2015. Il s’agit d’une méthode couramment utilisée dans le secteur minier et permettant au propriétaire d’un permis d’exploration de conserver les droits sans y mener des activités pendant une certaine période.

Seulement, le gouvernement a mis fin à cette pratique en 2017, retirant l’année suivante tous les titres miniers appartenant aux propriétaires d’une licence de rétention. Montero n’est d’ailleurs pas la seule compagnie qui a trainé le gouvernement en justice puisque la société Indiana Resources, une autre victime, réclamait en janvier dernier 93,7 millions de dollars à la Tanzanie devant la même juridiction en 2020.

TORONTO, July 28, 2022 (GLOBE NEWSWIRE) — Montero Mining and Exploration Ltd. (TSX-V : MON) (“Montero” or the “Company”) provides an update on its fully funded arbitration proceedings against the United Republic of Tanzania (“Tanzania”) over the expropriation of the Wigu Hill Rare Earth Element Project before International Centre for Settlement of Investment Disputes’ (“ICSID”), part of the World Bank group.

Montero submitted its Memorial on the Merits (“Memorial”) to the ICSID arbitral tribunal in May 2022 as per the time schedule agreed by the parties and the tribunal. The Memorial contains the basis for compensation to Montero for CAD$ 90 million including interest up until May 2022, which interest continues to accrue. The damages claimed are for Tanzania’s unlawful expropriation and mistreatment of Montero’s investment, this is in breach of the Agreement between the Governments of Canada and Tanzania for the Promotion and Reciprocal Protection of Investments (“BIT”) signed in 2013.

Dr Tony Harwood, President and CEO of Montero commented : “Montero has submitted a claim to the ICSID for damages of CAD$ 90 million. The Company has made repeated attempts to work with Tanzanian Government to reach an amicable settlement without success, while the discovery and development of the Wigu Hill project has created significant value for Tanzania. We are committed to pursuing fair treatment of our shareholders and a return on our substantial investment of time and money in Tanzania through a fully funded arbitration process governed by ICSID, a part of the World Bank.”

Background to Claims

Montero commenced exploration activities on the Wigu Hill Rare Earth Element project in March 2008 under a Prospecting License and spent over CAD$ 15.5 million on discovery and development of the project. In 2015 a five-year Retention License was awarded by the Tanzanian Government on the property. The Wigu Hill Retention License was expropriated by the Tanzanian Government in 2018 when the Mining (Local Content) Regulations 2018, cancelled all previously issued Retention Licenses. Since that time Montero has made repeated attempts to reach an amicable solution with the Government with no success.

Montero filed a request for arbitration with the ICSID on January 8, 2021. On February 9, 2021, ICSID registered Montero’s request for the institution of arbitration proceedings to resolve the illegal expropriation matter. The arbitral tribunal was constituted on November 18, 2021, with the appointment of the President, and appointees from Montero and Tanzania.

Montero has retained Mr. Thierry Lauriol of Jeantet AARPI as legal counsel and Dr. Neal Rigby of SRK Consulting (US) Inc. as quantum expert. Mr. Lauriol is highly experienced in international arbitration and has an excellent track record of achieving successful outcomes for clients in Africa. Dr. Rigby has acted in this capacity and as mining and valuation expert in many international mining disputes that have been resolved through ICSID arbitrations. Montero also secured dispute funding from Omni Bridgeway, a leading global dispute funder.

Montero is one of a number of companies that have filed arbitration procedures with ICSID against the Government of Tanzania for the expropriation of Retention Licenses. These include Winshear Gold Corp. with a claim of CAD$ 124 million (https://winshear.com) for the loss of the SMP Gold Project and Indiana Resources Limited with a claim of AUD$ 127 million for the loss of the Ntaka Hill Nickel Project (https://indianaresources.com.au).

Next Steps

According to the arbitral tribunal’s Procedural Order No 1 dated February 18, 2022, Tanzania will respond to Montero’s Memorial by October 2022, after which a new round of written submissions will follow in Q2 and Q3 2023.