Montero secures $27m settlement in Tanzania rare earths dispute

Canada-listed Montero Mining and Exploration has reached a resolution in its long-running dispute with Tanzania over the expropriation of the Wigu Hill rare earth element (REE) project, confirming a $27-million settlement.

Tanzania is to pay Montero in three installments, with the first $12-million already having been received, with the remaining amounts due next year.

The settlement amount represents about 39% of the $70-million Montero originally claimed in the dispute.

The company notes that the agreement provides a more expedient resolution than the lengthy and costly International Centre for Settlement of Investment Disputes arbitration proceedings, which had been ongoing since 2017.

Montero has confirmed that, with the receipt of the first payment, it has jointly requested the suspension of arbitration, and will seek the discontinuation of the proceedings once the final payment is received.

“I am pleased Montero was able to reach an amicable settlement with the government of Tanzania to bring a mutually beneficial end to this dispute. This resolution allows both parties to move forward, and we wish Tanzania every success in attracting new mining investment,” said president and CEO Tony Harwood.