Pak to challenge ICSID verdict with International court

13

ISLAMABAD

Pakistan has decided to challenge the decision before an international court by filing a revision application. Tethyan Copper Company’s (TCC) management had claimed $11.43 billion in damages. The lawsuit between the government of Pakistan and the international company lasted for as many as seven years. The Supreme Court of Pakistan under its chief justice of Pakistan Iftikhar Chaudhry terminated the deal in 2013.  The tribunal, earlier, held the view that Pakistan is mandated to pay damages for breach of contract.

The detailed report said Dr Samar Mubarak Mand appeared before the tribunal to represent Pakistan. Dr Samar told tribunel that Reko Dic will give Pakistan $131 billion. The report said Dr had assured Pakistan will export gold worth $2.5 billion annually. Sources said Pakistan has decided to challenge the decision before an international court by filing a revision application and a verdict on review petition can take 2 to 3 years.

The International Center for Settlement of Investment Disputes (ICSID) has imposed a penalty of $5.976 billion against Pakistan in its 700-page ruling. The ICSID awarded a $4.08 billion penalty and $1.87 billion in interest.  The company filed claims for international arbitration before the ICSID in 2012 after the Balochistan government turned down a leasing request from the company.

Tethyan Copper, a joint venture between Chile’s Antofagasta Plc (ANTO.L) and Canada’s Barrick Gold (ABX.TO), had discovered vast mineral wealth more than a decade ago in Reko Diq at the foot of an extinct volcano near Pakistan’s frontier with Iran and Afghanistan. The deposit was set to rank among the world’s biggest untapped copper and gold mines. Tethyan Copper Company’s (TCC) management had claimed $11.43 billion in damages.

The company said it had invested more than $220 million by the time Pakistan’s government, in 2011, unexpectedly refused to grant them the mining lease needed to keep operating.

The World Bank’s International Centre for Settlement of Investment Disputes (ICSID) ruled against Pakistan in 2017, but until now had yet to determine the damages owed to Tethyan. Tethyan board chair William Hayes said in a statement the company was still willing to strike a deal with Pakistan, but added that it would continue protecting its commercial and legal interests until the dispute was over.

Leave A Reply

Your email address will not be published.

Subscribe to Newsletter
close-link