Montero Mining and Exploration Ltd (TSX-V:MON) revealed new developments related to its arbitration proceedings against the government of Tanzania for its Wigu Hill rare earths project.
The Canadian resource junior has hired renowned arbitration lawyer Timothy Foden of Boies Schiller Flexner (UK) LLP to act as co-counsel alongside Jeantet AARPI.
Foden has significant experience in cases involving resource nationalism, having led two International Centre for Settlement of Investment Disputes (ICSID) hearings in relation to Tanzania’s expropriation of retention licences.
In a statement, Montero said that Foden’s experience in cross-examining Tanzania witnesses and background information “will significantly reduce costs and increase the effectiveness of Montero’s presentation of its case.”
The case centers on Montero’s rare earths project, Wigu Hill, where the company has spent nearly C$15.5 million in exploration expenses since 2008.
The Tanzanian government awarded Montero a five-year retention license in 2015, but it was expropriated by the Tanzanian government in 2018 when the Mining (Local Content) Regulations cancelled all previously issued licenses.
After “repeated attempts” to reach an amicable solution with the government, Montero filed a request for arbitration with the ICSID in January 2021 to preserve its rights.
Compensation claim
The firm is one of several companies that have filed arbitration procedures with ICSID against Tanzania for the expropriation of retention licenses, Montero noted in a statement.
In May 2022, Montero submitted a C$90 million compensation claim, plus interest that continues to accrue.
Montero claims that the “unlawful expropriation and mistreatment” of its Tanzanian investment is in breach of an agreement signed between Canada and Tanzania in 2013.
Tony Harwood, CEO of Montero, welcomed Foden to the legal team and added that the company will capitalize on his experience in legal proceedings against Tanzania.
“Montero created significant value exploring and developing Wigu Hill where rare earth element prices are high and in great demand,” Harwood said in a statement.
“Montero remains committed to the ICSID process and confident of a positive outcome for our shareholders.”
Montero will file its reply to Tanzania’s Counter-Memorial in June and Tanzania will file its rejoinder in September 2023.
The company is also focused on advancing globally significant gold, silver, and base metal deposits in Chile.
Contact Angela at angela@proactiveinvestors.com
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