Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Australia
  4. Australian Stock Exchange
  5. Indiana Resources Limited
  6. News
  7. Summary
    IDA   AU000000IDA0

INDIANA RESOURCES LIMITED

(IDA)
End-of-day quote. End-of-day quote Australian Stock Exchange - 12/01
0.061 AUD   -6.15%
11/30INDIANA RESOURCES : Application for quotation of securities - IDA
PU
11/26INDIANA RESOURCES : AGM Chairman's Address
PU
11/04Completion of RC Drilling – Minos and Ariadne
PU
SummaryChartsNewsCalendarCompanyFinancials 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Indiana Resources : Compensation Claim of AU$127m lodged against Tanzania

07/26/2021 | 07:48am EST

ASX: IDA

26th July 2021

Compensation Claim of AU$127m lodged against Tanzania

  • Memorial submission lodged with ICSID outlining quantum of compensation claim and damages against the United Republic of Tanzania for the expropriation of the Ntaka Hill Nickel Project
  • The Memorial provides the basis for compensation to the Claimants in the amount of AU$127 million, including interest which continues to accrue
  • Arbitral panel has confirmed the procedural timetable for arbitration - to conclude mid 2023
  • All legal costs funded through US$4.65m litigation funding facility

Indiana Resources Limited (ASX: IDA) ('Indiana' or the 'Company') provides the following update on arbitration with the United Republic of Tanzania over the expropriation of the Ntaka Hill Nickel Project ("the Project") and other breaches of the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the United Republic of Tanzania for the Promotion and Protection of Investments ("UK-TanzaniaBIT" or "BIT").

As the majority shareholder in Ntaka Nickel Holdings Ltd ("NNHL") and Nachingwea UK Ltd ("NUK") (both incorporated in the United Kingdom) Indiana is the manager of the Joint Venture Project and is responsible for all activities with regards to the arbitration.

The Company is pleased to advise that NUK, NNHL and its subsidiary Nachingwea Nickel Limited ("NNL") (the "Claimants") have now filed their Memorial, a submission setting out its claims with ICSID (The International Centre for Settlement of Investment Disputes), an organisation that is part of the World Bank Group. The Memorial contains the basis for compensation to the Claimants for AU$127 million (US$93.7million), that includes interest which continues to accrue.

The Claimants retained Mr Travis Taylor of Versant Partners, London, as its quantum expert to quantify the claim. LALIVE is representing the Claimants in the arbitration process. A litigation funding facility for US$4,653,400 is in place with Litigation Capital Management Limited ("LCM"), a firm listed on the Alternative Investment Market ("AIM") of the London Stock Exchange. The arbitration case is heard by a 3- person tribunal and is expected to conclude in H1 2023.

Company Comment

Indiana's Executive Chairman Bronwyn Barnes said: "Indiana continues to make positive progress in regard to arbitration with the Government of Tanzania. As the manager and major shareholder of the Ntaka Hill Nickel Project establishing AU$127 million as compensation for Tanzania's expropriation of what was once our flagship project is a very important milestone.

With litigation funding in place that secures all our legal costs associated with arbitration, Indiana is adequately resourced and well supported to deliver a positive outcome for our shareholders, and we look forward to reporting on further developments in due course."

Indiana Resources Limited | ABN 67 009 129 560 | Suite 3, 339 Cambridge St, Wembley WA 6014

ASX code: IDA | T +61 (8) 6241 1870| E info@indianaresources.com.au | www.indianaresources.com.au

Next Steps

The Arbitral Panel appointed by ICSID convened their first session in April 2021. Subsequent to this session, the procedural timetable for arbitration has been confirmed and is expected to conclude in mid 2023.

Background to Claim

In July 2017, the Government of Tanzania amended the Mining Act 2010 by, inter alia, abolishing the legislative basis for the Retention Licence classification with no replacement classification.

On 10 January 2018, Tanzania published the Mining (Mineral Rights) Regulations 2018, which cancelled all Retention Licences issued prior to 10 January 2018 at which point they ceased to have any legal effect. The rights over all areas under Retention Licences, including the Retention Licence held for the Project, were immediately transferred to the Government of Tanzania.

During the time from January 2018 to December 2019, the Company actively engaged with the Tanzanian Minister for Minerals and the Mining Commission in an effort to resolve a suitable tenure mechanism for the Project Licence to be reinstated.

At all times Tanzanian Government representatives reassured the Claimants' representatives, as well as Indiana Board members that visited Tanzania for the purpose of collaborative engagement with the Government, that their historic investment would be recognised and that their rights would be respected and protected.

On 19 December 2019, the Mining Commission of Tanzania announced a public invitation to tender for the joint development of areas covered previously by Retention Licences. The invitation provided that the successful bidder should compensate the previous Retention Licence holder for its exploration costs incurred. This public invitation was not sent to the Company or the Claimants but was advertised on the website for the Ministry of Energy and Minerals.

On 20 December 2019, the Mining Commission of Tanzania announced a revised public invitation to tender, which removed the condition that the successful bidder compensate the previous retention licence holder for its exploration costs incurred.

Through the measures described above, Tanzania has removed the ownership of the Project from the Claimants, and in doing so has breached its obligations to the Claimants under the UK-Tanzania BIT and international law. These include, but are not limited to:

  1. Tanzania's obligation not to nationalise or expropriate the Claimants' investments or subject them to measures having effect equivalent to nationalisation or expropriation without prompt, adequate and effective compensation under Article 5(1) of the BIT; and
  2. Tanzania's obligation to accord fair and equitable treatment and full protection and security to the Claimants' investment and not to impair by unreasonable or discriminatory measures the maintenance, use, enjoyment or disposal of the Claimants' investment under Article 2(2) of the BIT.

Article 8(3) of the BIT provides that the Claimants may submit the dispute to ICSID if the Claimants and Tanzania are unable to reach an agreement concerning the dispute within six months of the dispute arising (in this instance from the date of the Claimants' notice of dispute being 14 January 2020).

2

Indiana Resources Limited | ABN 67 009 129 560 | Suite 3, 339 Cambridge St, Wembley WA 6014

ASX code: IDA | T +61 (8) 6241 1870| E info@indianaresources.com.au | www.indianaresources.com.au

The Claimants have engaged LALIVE, an international law firm, to act on their behalf. LALIVE has offices in Geneva, Zurich and London, and specialises in international arbitration. The firm has extensive experience in international investment arbitration concerning mining and other natural resources and is representing investors and States as counsel worldwide.

The Company has also secured a Litigation Funding Agreement ("LFA") for USD4,653,400 with LCM - a firm listed on the Alternative Investment Market ("AIM") of the London Stock Exchange. The LFA will cover legal costs in bringing the Claim to Arbitration against the Government of Tanzania on a non-recourse basis, ensuring that costs relating to arbitration will not be borne by Indiana's shareholders.

The ICSID Convention has been ratified by 155 States, including Tanzania. An award issued by an ICSID tribunal is enforceable in any one of those 155 member States as if it were a judgment of one of their own courts. Partly because of this, States have overwhelmingly and historically complied voluntarily with the payment terms of such awards.

Ends

This announcement is authorised for release to the market by the Chairman of Indiana Resources Limited with the authority from the Board of Directors.

For further information, please contact:

Bronwyn Barnes

Trevor Harris

Aida Tabakovic

Executive Chair

Joint Company Secretary

Joint Company Secretary

T: +61 (0) 417 093 256

T: +61 8 6241 1870

T: +61 8 9481 0389

To find out more, please visit www.indianaresources.com.au

Forward Looking Statements

Indiana Resources Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Indiana Resources Limited, its Directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it. This announcement is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever. This announcement may contain forward looking statements that are subject to risk factors associated with exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimate.

3

Indiana Resources Limited | ABN 67 009 129 560 | Suite 3, 339 Cambridge St, Wembley WA 6014

ASX code: IDA | T +61 (8) 6241 1870| E info@indianaresources.com.au | www.indianaresources.com.au

Disclaimer

Indiana Resources Limited published this content on 26 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2021 11:47:08 UTC.


© Publicnow 2021
All news about INDIANA RESOURCES LIMITED
11/30INDIANA RESOURCES : Application for quotation of securities - IDA
PU
11/26INDIANA RESOURCES : AGM Chairman's Address
PU
11/04Completion of RC Drilling – Minos and Ariadne
PU
11/04Assay results
PU
11/03Indiana Resources Limited Announces Reverse Circulation Drilling Has Now Been Completed..
CI
11/02Indiana Resources Limited Announces Further Diamond Assays Received from Minos
CI
10/25INDIANA RESOURCES : Commencement of Drilling
PU
10/25INDIANA RESOURCES : Starts Drill Program at Central Gawler Craton Gold Project in South Au..
MT
10/24Indiana Resources Limited Commences Reverse Circulation Drilling At Minos and Ariadne W..
CI
10/23INDIANA RESOURCES : September 2021 Quarterly Activities and Cash flow Reports
PU
More news
Financials
Sales 2021 - - -
Net income 2021 -1,68 M -1,17 M -1,17 M
Net cash 2021 1,22 M 0,85 M 0,85 M
P/E ratio 2021 -11,2x
Yield 2021 -
Capitalization 26,5 M 18,6 M 18,6 M
EV / Sales 2020 145x
EV / Sales 2021 -
Nbr of Employees -
Free-Float 91,2%
Chart INDIANA RESOURCES LIMITED
Duration : Period :
Indiana Resources Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Managers and Directors
Trevor A. Harris Chief Financial Officer & Joint Secretary
Bronwyn Lesley Barnes Executive Chairman
Bob Adam Non-Executive Director
Felicity Repacholi-Muir Non-Executive Director
Aida Tabakovic Joint Secretary
Sector and Competitors