The law firm "Hughes Hubbard & Reed LLP" from New York, in cooperation with the Belgrade office Nikčević-Kapor, will represent Montenegro in the dispute initiated against the state by "Tara Resources AG", it was officially confirmed to "Vijesti" by the Ministry of Energy.
A Swiss company has initiated arbitration against the state of Montenegro over the termination of the concession for the Brskovo mine in Mojkovac and is seeking compensation of 300 million euros.
"A total of 86 bids were received in response to the public call by the Ministry of Energy and Mining for the selection of a legal representative of Montenegro in the arbitration proceedings initiated by the company 'Tara Resources AG' from Switzerland. By decision of the Ministry of 8 September 2025, a Commission was formed with the task of reviewing, evaluating and ranking the bids, and to submit to the Minister of Energy and Mining a proposal for the selection of a law firm that will represent Montenegro in the aforementioned proceedings. The Commission, in addition to representatives of the Ministry of Energy and Mining, also included the Representative of Property and Legal Interests of Montenegro, which ensured that the proceedings were conducted in accordance with the highest standards of professionalism and transparency. After a detailed review of all bids received, the Commission prepared minutes, a ranking list and a proposal to select the law firm Hughes Hubbard & Reed LLP, New York, in cooperation with the Nikčević-Kapor Law Firm, Belgrade (Serbia), as the first-ranked firm to represent Montenegro," the department headed by Minister Admir Šahmanović stated.
As they added, based on the Commission's recommendation, the Government gave its consent for these offices to represent the state of Montenegro in the arbitration proceedings.
"The plaintiff estimated the compensation claim at 300 million euros, but that amount is not final and will be specified through expert evaluation during the arbitration proceedings," the Ministry of Energy said.
This contract was terminated a year and a half ago, while the current mayor of Podgorica, Saša Mujović, was at the head of the Ministry of Energy and Mining. At the end of May last year, at a press conference, he stated that the conditions had been met for the unilateral termination of the contract and the collection of the bank guarantee.
Lawyer “Tara Resources”"Luka Popovic" He said then that the Government must be aware of the risk of unilateral termination of the contract, referring to the Agreement with Switzerland on Investment Protection.
The contract granted a Swiss company a concession for detailed geological research and exploitation of polymetallic sulphide ore in the exploration and exploitation area of the former Brskovo mine. The non-governmental sector claimed that this was detrimental to the environment and the health of the people of Mojkovci, and the local population also organized a protest, stating that they had been recovering from the mine for 20 years and that they no longer needed poison and mercury in the city center.
According to information from the Ministry of Energy, which was presented at the Government session in July this year, the Swiss company initiated arbitration proceedings against the state of Montenegro on July 14 this year before the International Center for Settlement of Investment Disputes in Washington.
"The claimant has also appointed an arbitrator, Oliver Thomson Johnson. The State should appoint a second arbitrator and agree with the respondent on the appointment of the president of the arbitration tribunal. Only after the arbitration tribunal is fully constituted will the arbitration proceedings be able to proceed actively, and at that stage it is expected that 'Tara Resources AG' will submit a detailed statement of claim (within the deadline set by the tribunal) to which the State of Montenegro, assisted by legal counsel, will prepare an appropriate response (also within the deadline set by the tribunal) - all in accordance with the procedural calendar to be set by the arbitration tribunal," the Ministry of Energy stated in the information.
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