Last year, mining and exploration giant Montero, announced its intention for arbitration after accusing the government of violating several provisions of the Bilateral Investment Treaty. The dispute pertains to acts and omissions by the Government of Tanzania that allegedly breached BIT and caused harm to Montero and others.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Last year, mining and exploration giant Montero, announced its intention for arbitration after accusing the government of violating several provisions of the Bilateral Investment Treaty. The dispute pertains to acts and omissions by the Government of Tanzania that allegedly breached BIT and caused harm to Montero and others.
Mining Review explains that the Canadian arm of Omni Bridgeway is providing more than $2.3 million in funds to cover fees, expenses, and legal costs, including enforcement if necessary. Jeantet, who represents the plaintiff, plans to aggressively pursue appropriate compensation in relation to the illegal acts of the Tanzanian Government.
Montero declined to comment on the case. It is believed, however, that Montero lost the entirety of its investment in the project in question when its retention license was canceled in 2018. This occurred as part of amendments to existing mining acts, that ultimately gave licensing back to the government.
Compensation, if awarded, is expected to include the original investment value, the value of the project itself, and the damages suffered by the company itself.
Filing a notice of intent begins a six month consultation period where parties are encouraged to settle out of court. Tanzanian Government officials allegedly made no effort to find a compromise.
