Tanzania has completed its US$27 million settlement with Montero over the expropriation of the Wigu Hill rare earth project. With the final US$7 million payment received, both parties will now request the formal discontinuation of ICSID arbitration, marking the conclusion of the dispute.
This payment is expected to bring the arbitration before the International Centre for Settlement of Investment Disputes (ICSID) to a formal close. Tanzania and Montero had jointly requested the suspension of ICSID arbitration proceedings after the first settlement payment. Now, with the final installment received, both parties will formally request the tribunal to discontinue the arbitration entirely.
Dr. Tony Harwood, President and CEO of Montero, stated: “I am pleased Montero has timely received the third and final payment of US$7 million from Tanzania.” With the full settlement received, Montero will now determine the net proceeds after legal and administrative costs and finalize its distribution plans. The company expects to provide an update during Q2 2025. Montero and Tanzania’s Wigu Hill Dispute The dispute between Montero Mining and Exploration and the Tanzanian government over the Wigu Hill rare earth element project spans several years. In 2008, Montero began exploration activities at Wigu Hill, investing approximately CAD$ 15.5 million in the project’s development. Tensions arose in 2018 when the Tanzanian government canceled Montero’s retention licenses for Wigu Hill, which Montero interpreted as expropriation. This action prompted Montero to argue that it had created significant value for Tanzania through its investments. In January 2021, after unsuccessful attempts to resolve the issue amicably, Montero initiated international arbitration proceedings against Tanzania through the International Centre for Settlement of Investment Disputes (ICSID).
CREDIT: Tanzania invest
