Swiss company Tara Resources has initiated arbitration proceedings against Montenegro following the government’s decision to terminate its concession agreement for mineral exploitation at the Brskovo mine near Mojkovac. The agreement was canceled in 2023 during the mandate of then Minister of Energy and Mining, Saša Mujović.
The company claims damages of at least $300 million, and the amount could grow due to accumulated interest. The case could also negatively affect Montenegro’s international reputation and its ability to attract foreign investors in the future.
The government had signed the concession agreement in 2010, and it was amended in 2012. In May 2023, Mujović stated that the government had grounds to terminate the contract, citing irregularities and failure to meet obligations on the part of Tara Resources.
Tara Resources insists that it met all requirements and that the revocation was politically motivated and legally unjustified. The arbitration is being conducted in accordance with international investment treaties to which Montenegro is a signatory.
