Indiana Resources Disputes Tanzania’s Settlement Breach

Indiana Resources Limited (ASX: IDA) is taking action against The United Republic of Tanzania due to a breach of their Settlement Deed, originally concluded on July 29, 2024. The agreement, which involved a US$90 million settlement paid in installments, has been jeopardized by a recent “Notice of Jeopardy Assessment” from the Tanzanian Revenue Authority’s regional Lindi office. Despite receiving all settlement installments, as confirmed by Indiana Resources, Tanzania has failed to withdraw the tax assessment, leading Indiana to initiate arbitration proceedings with the London Court of International Arbitration (LCIA). This action seeks declaratory relief to protect the company and claimants from potential legal and accounting issues. The company is awaiting confirmation from the ATO regarding payment to shareholders as a capital return. In light of Tanzania’s breach, Indiana Resources has reserved its rights regarding the International Centre for Settlement of Investments Disputes (ICSID) arbitration process. The company has not issued a letter of discontinuance to ICSID. Consequently, Indiana Resources retains the option to request a resumption of annulment proceedings by the ICSID Ad hoc Committee. Should the suspension be lifted and Tanzania’s annulment application be dismissed, the company expects Tanzania to honor its commitment to pay the outstanding award balance plus interest, totaling US$36,880,493 as of May 2025. The initial award, including interest, amounted to US$126,880,493.23, with US$90,000,000 already received in three installments.