15th January 2020
Indiana Serves Notice over Ntaka Hill Nickel Project Retention Licence in Tanzania
Notice served to Tanzanian President, Attorney General and Ministry of Energy and Minerals in relation to the Ntaka Hill Nickel Project Retention Licence
Tanzania has breached obligations it owes to Investors under 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 and international law
Notice formally advises Tanzania Government of intent to submit a claim to arbitration
Indiana is taking all necessary actions to preserve its rights as a shareholder of Ntaka Hill Holdings Limited (United Kingdom) International arbitration counsel retained to advise and will consider any other actions necessary to ensure its rights to the Licence are protected
All feasible legal avenues will be pursued to protect the rights of shareholders
Indiana Resources Limited (ASX: IDA) (‘Indiana’ or the ‘Company’) advises that through its majority shareholding position in Ntaka Nickel Holdings Ltd (“NNHL”, incorporated in the United Kingdom) a Notice was delivered to the President of Tanzania, H. E. The Hon John Magufuli, to the Tanzanian Solicitor General and to the Tanzanian Ministry of Energy and Minerals on 14 th January 2020, that a dispute has arisen in relation to NNHL’s investment in the Ntaka Hill Nickel Project located in the Nachingwea Property in southeastern Tanzania (the “Project”). The dispute arises out of certain acts and omissions of the United Republic of Tanzania in breach 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 (“BIT”) and international law in relation to the Project, and the Notice was delivered in accordance with Article 8(3) of the BIT. In 2017, the Government of Tanzania introduced wide-ranging and severe amendments to the Mining Act 2010, which, inter alia, abolished the legislative basis for the Retention Licence classification with no replacement classification. On 10 January 2018 Tanzania published the Mining (Mineral Rights) Regulations 2018. Under Regulation 21 of these Regulations, Tanzania 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 Energy and Minerals and the Mining Commission in an effort to resolve a suitable tenure mechanism for the Project licence to be reinstated.