The Government of Montenegro has confirmed that Swiss company Tara Resources (TR) has formally initiated arbitration proceedings against the country following the termination of its concession agreement for the Brskovo mine near Mojkovac last year.
The arbitration was filed under the ICSID Convention, ICSID Rules, and the Bilateral Investment Treaty between Serbia and Montenegro and Switzerland. The case is being handled by the International Centre for Settlement of Investment Disputes (ICSID) in Washington, D.C.
TR is seeking at least $300 million in damages for alleged losses and lost profits. The company has already appointed an arbitrator, and Montenegro is expected to appoint its own. The arbitration process will officially begin once the tribunal is fully constituted.
The government must now respond to ICSID communications, launch a public call to select a law firm for legal representation, and form a working group to manage and coordinate the arbitration process.
The original contract with TR, signed in 2010, granted rights for geological exploration and exploitation of polymetallic sulfide ore. The agreement was terminated in May 2024 under Minister Saša Mujović, who cited unresolved irregularities in the feasibility study and environmental concerns. The decision followed expert review and consultations with international legal firms on the potential risks of arbitration.
Local opposition to the mining project was strong, with civil society and residents warning about its environmental and health impacts, referencing the region’s long recovery from past mining activities. TR’s legal counsel argued the termination was unjustified and insisted the company met its obligations, claiming delays were due to missing planning documents.
