Montero Mining has received the final US$7 million payment from Tanzania, concluding a US$27 million settlement over the Wigu Hill project dispute. Originally demanding US$70 million, Montero now focuses on covering expenses and potential shareholder distributions, with the settlement finalized after a protracted legal battle.
Montero Mining and Exploration Ltd. has reported the completion of a significant payment from the government of Tanzania, concluding a dispute concerning the Wigu Hill rare earth element project. This final payment of US$7 million is part of a US$27 million settlement, resolving a legal battle initiated after the Tanzanian government took control of the project.
The settlement was finalized out of court in November 2023, following negotiations between the Tanzanian government and Montero, which had originally sought US$70 million in compensation. Under the terms, Tanzania will make the payments in three installments, with Montero scheduled to receive US$12 million by November 2024, and the remaining US$15 million by early 2025.
This resolution not only indicates the end of the dispute but also helps Tanzania avoid a prolonged court case and the uncertainties that accompany potential adverse rulings. Since 2008, Montero has invested roughly 15.5 million Canadian dollars in the Wigu Hill project.
Montero previously filed an arbitration claim with the International Centre for Settlement of Investment Disputes (ICSID), which will now be withdrawn following the settlement. Dr. Tony Harwood, Montero’s President and CEO, expressed contentment regarding the resolution, noting the company’s intention to address legal costs and other expenses associated with the dispute.
Following the settlement, Montero is exploring options to allocate the funds to shareholders, including potential capital returns. A decision on this matter will follow a thorough review of related costs, with updates anticipated in the second quarter of 2025. Montero will retain some settlement funds to manage any outstanding expenses tied to the dispute.
In summary, the settlement between Montero Mining and the Tanzanian government marks a significant resolution to a long-standing dispute. The arrangement culminates in a payment plan structured to conclude by early 2025, enabling both parties to move forward. Montero’s leadership expresses satisfaction with the resolution, and the company is poised to consider shareholder distributions from the settlement funds. This situation illustrates the complexities involved in international mining and investment disputes, along with the importance of negotiated settlements.
Original Source: africanminingmarket.com
