Montero Mining and Exploration has reached a $27 million settlement with Tanzania over the Wigu Hill rare earth project, resolving a long-standing dispute. The company had initially sought higher compensation through international arbitration.
The conflict began in 2018 when Tanzania revoked Montero’s retention licence following changes to its mining laws. Montero argued that the move amounted to expropriation and filed a claim in 2021 with the International Centre for Settlement of Investment Disputes (ICSID), initially seeking C$90 million in damages.
The settlement will be paid in three instalments, with Montero expecting the final two payments within five weeks. However, after legal and funding expenses, the company will receive about $14.5 million.
Montero is among several firms that have pursued arbitration against Tanzania over similar disputes. In 2023, Indiana Resources was awarded $109.5 million, while Winshear Gold settled for $30 million.
Following the resolution, Montero plans to focus on its Avispa copper-molybdenum project in Chile and is currently seeking a joint venture partner. Its stock rose 3.2% to C$0.32 per share after the settlement announcement, bringing its market value to C$15.6 million ($10.8 million).