Nachingwea U.K. Limited (UK), Ntaka Nickel Holdings Limited (UK) and Nachingwea Nickel Limited (Tanzania) v. Tanzania

Case summary

At a glance

Parties: Nachingwea U.K. Limited and Ntaka Nickel Holdings Limited (United Kingdom), and Nachingwea Nickel Limited (Tanzania), v. the United Republic of Tanzania
Case no.: ICSID Case No. ARB/20/38
Forum and rules: ICSID Convention arbitration
Treaty: UK–Tanzania BIT
Sector: Mining (nickel)
Outcome: According to the claimants' parent company, an ICSID award of July 2023 granted the claimants US$109 million. Tanzania applied for annulment, and the parties settled for US$90 million in July 2024.
Amount: Claimed in the Request for Arbitration: in excess of US$95 million. Award, as reported by the claimants' parent company: US$109 million. Settlement: US$90 million, payable in three instalments (US$35 million, US$25 million and US$30 million).

The dispute

The claimants are two UK companies, Ntaka Nickel Holdings Ltd and Nachingwea UK Ltd, and their Tanzanian subsidiary, Nachingwea Nickel Ltd. Indiana Resources Limited, an ASX-listed company, is their majority shareholder and manages the joint venture for the Ntaka Hill Nickel Project. In July 2017 Tanzania amended the Mining Act 2010 and abolished the legal basis for Retention Licences. On 10 January 2018 it published the Mining (Mineral Rights) Regulations 2018. These cancelled all existing Retention Licences, including the licence for the Project, and transferred the rights to the State. In December 2019 the Mining Commission invited public tenders for the former licence areas, and a revised invitation dropped the requirement that the winning bidder compensate the former licence holder. The claimants alleged expropriation without compensation under Article 5(1) of the UK–Tanzania BIT. They also alleged breaches of fair and equitable treatment, full protection and security, and the bar on unreasonable or discriminatory measures under Article 2(2). The published documents are two press releases from Indiana Resources. They do not set out Tanzania's defences or the tribunal's reasoning.

Key holdings

The published documents contain no decision of the tribunal or of the ad hoc Committee. The only statement of the result comes from Indiana Resources, which says that ICSID handed down an award of US$109 million in July 2023. Settlement press release, pp. 1–2
Tanzania agreed to pay US$90 million in settlement, which Indiana Resources describes as 82.5% of the award. The instalments are US$35 million (already received), US$25 million by 25 October 2024 and US$30 million by 30 March 2025. Settlement press release, p. 1
Under the settlement terms, the parties were to ask the ad hoc Committee to suspend the annulment proceeding until the settlement is completed. If Tanzania misses the second or third instalment, the claimants may ask the Committee to resume and decide the annulment, or may refer the matter to LCIA arbitration. The press release also reports that Tanzania gave ICSID a written undertaking to pay the full award plus interest within 45 days if its annulment application is dismissed. Settlement press release, p. 2

Procedural history

10 January 2018Tanzania publishes the Mining (Mineral Rights) Regulations 2018, which cancel all Retention Licences, including the licence for the Project.
14 January 2020The investors notify Tanzania of the dispute under the BIT.
30 September 2020The Request for Arbitration is lodged with ICSID, claiming in excess of US$95 million.
July 2023ICSID award of US$109 million, as reported by Indiana Resources (the award is not among the published documents).
26 July 2024Final hearing in Tanzania's annulment proceeding, held in Washington DC.
29 July 2024Indiana Resources announces a US$90 million settlement and states that the parties will ask the Committee to suspend the annulment proceeding.