Tanzania Pays Off Canadian Mining Firm

Montero Mining and Exploration Ltd. has confirmed the completion of the final US$7 million payment from the government of Tanzania, marking the conclusion of a long-standing dispute over the expropriation of the Wigu Hill rare earth element project.

The US$27 million settlement resolves a protracted legal battle that began when the Tanzanian government seized control of the Wigu Hill project.

The dispute was settled out of court in November 2023, following an agreement between the government and the Canadian company. Montero had initially sought US$70 million in compensation.

Under the terms of the agreement, Tanzania agreed to pay Montero US$27 million, approximately 39% of the original demand.

The payment was to be made in three installments, with Montero receiving US$12 million by November 2024. The final two installments, totaling US$15 million, were to be paid by January and February 2025, with the last installment being received on 4th March 2025.

This settlement not only concludes the legal dispute but also spares Tanzania from a lengthy court hearing, the risks of an adverse ruling, and the potential challenges of enforcing any judgment.

Montero had invested approximately 15.5 million Canadian dollars in the project since its inception in 2008.

Despite several attempts to resolve the matter amicably, Montero filed an investment arbitration claim with the International Centre for Settlement of Investment Disputes (ICSID), which will now be formally discontinued.

Montero’s President and CEO, Dr Tony Harwood, expressed satisfaction with the timely completion of the settlement.

“I am pleased Montero has timely received the third and final payment of US$7 million from Tanzania,” said Dr Harwood.

He added that the company was now positioned to resolve the financial aspects of the settlement, including legal costs and other expenses incurred during the dispute.

Montero also stated that it is considering options to distribute the settlement funds to its shareholders, including the possibility of a return of capital distribution. A final decision will be made after an internal review of the legal, taxation, and administrative costs, with an announcement expected in the second quarter of 2025.

The company will retain a portion of the settlement funds to cover any remaining expenses related to the dispute, which will be Montero’s responsibility moving forward.

Efforts to contact the Attorney General, his deputy, and the Solicitor General for comment were unsuccessful.

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