Lalive secures USD109 Million award for clients in ICSID Arbitration 

In a significant win, international disputes firm Lalive has secured a major victory for its clients, Nachingwea UK Limited, Ntaka Nickel Holdings Limited (both incorporated in the UK), and Nachingwea Nickel Limited (incorporated in Tanzania), in arbitration proceedings under the International Centre for Settlement of Investment Disputes (ICSID). The case revolved around a pre-development stage mineral project, the Ntaka Hill Nickel Project, located in the southeast of Tanzania, held by the claimants under a retention license. However, in January 2018, Tanzania enacted regulations that unilaterally canceled the license and reverted the rights to the Government. 

Lalive’s clients effectively argued that these actions constituted an unlawful expropriation under the UK-Tanzania bilateral investment treaty, leading the tribunal to award the claimants an impressive USD76.7 million in damages. After interest, the final award amounted to over USD109 million, nearly 100% of the claimed amount. Furthermore, the tribunal ordered Tanzania to reimburse the claimants nearly 100% of their legal costs and expenses incurred throughout the arbitration process. 

Lalive partner Marc Veit (pictured), who specialises in international arbitration, led the cross-border team advising the claimants. He was supported by counsel Augustin Barrier in Geneva and associate Robert Denison in London. Timothy Foden of Boies Schiller Flexner acted as co-counsel alongside the Lalive team. 

Marc Veit comments: “This award finally provides our clients with compensation for the expropriation of their mineral project. The tribunal’s decision should give further confidence to other companies involved in the extraction of natural resources, even at the exploration and development stage, in the protection provided by investment treaties. Resource nationalism has a price tag.” 

The United Republic of Tanzania was represented by a team of attorneys from the Solicitor General’s Office. Litigation Capital Management (LCM) provided funding to the claimants in relation to the dispute.