Ntaka Hill Nickel Project
Type of claim and jurisdiction
Bilateral Investment Treaty claim brought against Tanzania under ICSID.
Brief summary of claim
The dispute concerns the development by the Claimants of the Ntaka Hill Nickel Project, a mining operation for the exploitation of nickel located in south-eastern Tanzania. The Claimants comprise two UK incorporated companies and a company incorporated in Tanzania, all ultimately owned by Indiana Resources, an Australian ASX listed company. The dispute arose from certain changes to Tanzania’s regulatory framework for mining projects and in particular Tanzania modification of the legal basis for granting retention licences. The Claimants’ retention licences were cancelled in 2019 without compensation.
Law Firm acting/ specialisation
Boies Schiller Flexner (UK) LLP (Tim Foden). Tim is a treaty-claim specialist with strong mining-sector experience.
LCM committed capital
USD 4.7m.
Structuring
Single case funding.
Current status
In July 2023 the Tribunal awarded Ntaka USD 116m.
Tanzania has sought to annul the Award. The Claimants filed an objection to Tanzania’s annulment application under ICSID Rule 41(5) alleging that it was “manifestly without legal merit” and the Tribunal has dismissed two of Tanzania’s grounds for annulment. The Tribunal found that the allegations relating to the original Tribunal acting “manifestly in excess of its powers” and “failing to state the reason on which the Award was based” are manifestly without legal merit. The remaining ground, “there was a serious departure from the fundamental rule of procedure” will proceed to a full hearing.
Contribution by LCM
Swift execution. Case funded in less than 8 weeks from introduction to execution of the LFA due to LCM’s focused due diligence Meaningful arbitration strategy advice during the lifetime of the investment.
Feedback on LCM
“It’s worth me noting the role that Hugo played in getting this financed. Other than some questions from Harry Matovu QC, this was the fastest I’ve ever had a case funded. He really pushed it through and is a pleasure to work with.”
