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Tanzania pays Canada's Winshear $30 million to settle investment dispute
What you need to know:
- This settlement comes after the two parties decided to suspend arbitration and settle the matter through mutual understanding.
Dar es Salaam. The Tanzanian government has reached an agreement with a Canadian mining company, Winshear Gold Corp, to conclude an investment dispute that was instituted by the foreign company for the expropriation of an investment property, the SMP Gold Project, in southwest Tanzania.
This settlement comes after the two parties decided to suspend arbitration and settle the matter through mutual understanding.
When The Citizen reached out to Tanzania's Attorney General, Eliezer Feleshi, when the news of the suspension of arbitration proceedings surfaced back on September 21, 2023, he acknowledged the developments. He said that the settlement would be governed by negotiated terms confined to parties as per the International Centre for Settlement of Investment Disputes (ICSID) rules. He, however, did not disclose the settlement amount.
It has now been revealed that the Tanzanian government has paid the Vancouver-based company $30 million (Sh75 billion). The company was originally seeking compensation in excess of Sh250 billion for the SMP Minerals Resource, which was wholly contained within the Four Retention Licenses that were expropriated in 2017.
In February 2023, it was reported that a judgment would be issued within six months of the conclusion of the arbitration hearing. Later on, the two parties to the dispute (the Tanzanian government and Winshear Gold) decided to suspend arbitration and settle the matter under mutual understanding.
In a public announcement dated October 16, 2023, Winshear Gold reported that it has successfully concluded the settlement agreement with the United Republic of Tanzania in relation to its dispute regarding the company’s SMP Gold Project.
"The parties agreed on an amount of US$30,000,000 to settle the case and terminate the arbitration proceedings. Funds were received by the company today, October 16th, 2023. After payment of funding and legal costs, the net amount to Winshear is approximately C$25,275,000 (US$18,500,000)," the letter reads.
Richard Williams, CEO of Winshear Gold, commented, “This settlement is good for both Tanzania and Winshear, and we are pleased to reach a mutually acceptable conclusion to this matter. It is time for both parties to move on, and we wish Tanzania success in attracting new investment."
