Reko Diq arbitration decision goes AGAINST Pakistan!

[M Ali Khan]

ICSID rules in favour of Tethyan over Reko Diq project

Source: SMW

Antofagasta (ANTO) has confirmed that the World Bank's International Center for Settlement of Investment Disputes (ICSID) has ruled on the arbitration claims that Tethyan Copper (TCC), a joint venture with Barrick Gold, filed against the Islamic Republic of Pakistan regarding the unlawful denial of a mining lease for the Reko Diq project in Pakistan in 2011.

Yesterday's decision by the ICSID tribunal rejected Pakistan's final defence against liability and confirmed that Pakistan had violated several provisions of its bilateral investment treaty with Australia, where TCC is incorporated.

The damages phase of proceedings will begin on 22 March and the tribunal will consider submissions from the parties to determine the amount that Pakistan must pay TCC. A ruling on the extent of damages is expected in 2018.

"We are pleased with this decision and now the damages phase of the arbitration can begin. We expect that, at the conclusion of this phase, Tethyan will receive an award entitling it to the fair market value of the project at the time that the mining lease application was denied," said Ivan Arriagada, Antofagasta Chief Executive Officer.

Prior to submission of the mining lease application, Tethyan had completed a feasibility study showing that Reko Diq was one of the world's largest undeveloped copper and gold deposits with a potential mine life of over 50 years mine life for an estimated initial capital investment of over $3bn.

Source

 

[M Ali Khan]

ICSID Issues Decision in Favor of Antofagasta plc and Barrick in Reko Diq Arbitration Proceedings




TORONTO, March 21, 2017 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick” or the “Company”) announced that an arbitration tribunal of the World Bank’s International Center for Settlement of Investment Disputes (“ICSID”) yesterday issued a decision on the arbitration claims that Tethyan Copper Company Pty Limited (“TCC”), a joint venture between Antofagasta plc and Barrick, filed against the Islamic Republic of Pakistan, in relation to the unlawful denial of a mining lease for the Reko Diq project in 2011.


Yesterday’s decision by the ICSID tribunal rejected Pakistan’s final defense against liability, and confirmed that Pakistan had violated several provisions of its bilateral investment treaty with Australia, where TCC is incorporated.


The damages phase of the proceedings will begin on March 22, during which the tribunal will consider submissions from the parties to determine the amount that Pakistan must pay TCC. A ruling on the quantum of damages is expected in 2018.


The Reko Diq project, located in the Balochistan province of Pakistan, was expected to require an initial capital investment of more than $3 billion. It is one of the world’s largest undeveloped copper and gold deposits, with a potential mine life of more than 50 years.

http://www.barrick.com/investors/ne...Reko-Diq-Arbitration-Proceedings/default.aspx

 

[M Ali Khan]

background of Reko Diq case


http://herald.dawn.com/news/1153283/magic-mountains-the-reko-diq-gold-and-copper-mining-project

 

[Aslan]

It will be interesting to know if any Pakistani mining companies exist,I doubt if there are any,Why can't a countries of 200m people produce it own mining engineers and set up of its own mining companies?. Nawaz dakoo is building roads only Pakistan needs thousands of engineers,scientists and entrepreneurs for R&D,set up companies and build a strong industrial base.

 

[Shahid Abassi]

Those who signed the original contract with Tethyan should have been investigated and brought to justice. I think it was Raeesani and Zardari who cashed dollars in this deal.
But then no thug or looter is ever punished in this country.
Pakistan still has a possibility to go to court against ICSID verdict.

 

[Musafir123]

Pakistan loses reko diq case before world bank

ARBITRATION RULING SAYS ISLAMABAD UNLAWFULLY DENIED MINING LICENSE TO TETHYAN COPPER COMPANY.


An arbitration tribunal of the World Banks International Center for Settlement of Investment Disputes (ICSID) on Tuesday ruled against Pakistan on the Tethyan Copper Companys plea against Islamabads unlawful denial of a mining lease for the Reko Diq project in 2011.


In a statement posted on its website, Barrick Gold Corporationwhich is a joint partner in Tethyan with Antofagastasaid the tribunals decision had rejected Pakistans final defense against liability. Islamabads actions violated several provisions of its bilateral investment treaty with Canberra, where the Tethyan Copper Company is incorporated, it added.


The tribunal will now begin the damages phase of the proceedings, during which it will determine the amount Pakistan must pay to Tethyan in compensation. The ruling on the overall sum of the damages, by some estimates around $10 billion, is expected next year. Under ICSID rules, its judgment cannot be appealed and every signatory state must treat its rulings as it they were awarded by the countrys own courts. This means Pakistan will either have to pay whatever damages it is deemed are owed or default, risking isolation from international markets.


The Reko Diq project was expected to require an initial capital investment of over $3 billion, with a potential mine life of 50 years or more. Lacking resources, the Balochistan Development Authority entered into a joint venture with BHP Minerals, a Delaware-incorporated company, to mine copper in the region in 1993.


The deal, which gave BHP exclusive rights to prospect in certain areas, also granted the BDA a 25 percent interest in any commercial development arising out of the exploration. In April 2000, the BHP entered into an agreement with the Tethyan Copper Company and transferred its 75-percent stake, which was confirmed through a 2006 agreement signed with the Balochistan governor.


Tethyan claims it invested about $220 million in Reko Diq between 2006 and 2011 and found commercial grade copper. This discovery was valued between $30 billion and $50 billion, which local journalists claimed would benefit the foreign company at the expense of Pakistans national interest. This prompted the Supreme Court to take suo motu notice of the matter.


The Iftikhar Chaudhry-led court, in 2013, ruled that the original 1993 agreement was void and, as such, all subsequent agreements between Balochistan and Tethyan were also void. By this time, Tethyan had already initiated international arbitration, leaving the government with little recourse other than to contest it. The amount Islamabad may be forced to pay out, say some experts, could well exceed any potential revenue it would have lost based on the original agreements terms.

Source: http://newsweekpakistan.com/pakistan-loses-reko-diq-case-before-world-bank/