Grafa, 3 June 2025
By Mahathir Bayena

Indiana Resources takes legal action after Tanzania breaches $90M settlement deal

Indiana Resources (ASX:IDA) has taken formal steps in response to Tanzania’s breach of its July 2024 settlement deed.

While Tanzania initially complied by making all scheduled payments totalling US$90 million, the company recently received a "notice of jeopardy assessment" from the Tanzanian Revenue Authority, which Tanzania has refused to withdraw, violating the terms of the agreement that prohibit taxation on the settlement.

Indiana has filed a notice of arbitration with the London Court of International Arbitration to protect its interests and those of the claimants.

Furthermore, Indiana has reserved its rights by not closing the ongoing ICSID arbitration, keeping open the possibility of requesting the International Centre for Settlement of Investment Disputes Ad hoc Committee to resume annulment proceedings.

Should Tanzania’s annulment application be dismissed, Indiana expects the outstanding award amount plus interest to be paid within 45 days, as previously committed by Tanzania.

Meanwhile, Indiana is awaiting final approval from the Australian Taxation Office regarding a capital return distribution to shareholders.

At the time of reporting, Indiana Resources’ share price was $0.078.