The Indiana Resources Ltd (ASX: IDA) share price has been a standout on the ASX boards on Tuesday.
At one stage today, the ASX mining share was up as much as 156% to a 52-week high of 10.5 cents.
The Indiana Resources share price has since pulled back but remains up by 90% currently.
Image source: Getty Images
Why is this ASX mining share rocketing higher?
Investors have been scrambling to buy this ASX mining share on Tuesday after it released an update on its dispute with the United Republic of Tanzania, which was the subject of arbitration through the International Centre for Settlement of Investment Disputes (ICSID).
Indiana Resources is the majority shareholder in the claimants: UK-incorporated Ntaka Nickel, Nachingwea, and Nachingwea Nickel. As a result, it is the manager of the joint venture and responsible for activities relating to the arbitration against Tanzania.
According to the release, the tribunal has unanimously found that Tanzania had unlawfully expropriated the Ntaka Hill Nickel Project on 10 January 2018 in breach of the UK-Tanzania Bilateral Investment Treaty.
What was the award?
The release notes that the arbitration tribunal has ordered Tanzania to pay the claimants US$76.7 million in damages and additional losses, as well as compound interest at the rate of 2% above the USD Prime rate on the amount awarded from 10 January 2018 to the date of payment.
This amounts to a total of more than US$109.5 million in damages and accrued interest at the date of the tribunal's award. The tribunal also decided that legal costs of ~US$3.86 million should be borne by Tanzania.
Pleasingly, while either party may file an application for annulment within 120 days after the award was rendered, the grounds for an annulment are extremely limited. As a result, the ASX mining share sees no reason why a challenge would be successful.
