The final decision on the case will be made after a hearing in May
The World Bank’s International Centre for Settlement of Investment Disputes (ICSID) granted a stay on the implementation of the huge $6 billion penalties imposed on Pakistan for denying a mining lease for the Reko Diq project to Australia’s Tethyan Copper Company (TCC).
The penalty was slapped last year by the ICSID for the decision taken in 2011. TCC is a joint venture of Barrick Gold Corporation of Australia and Antofagasta PLC of Chile on equal basis. The tribunal was chaired by Germany’s Klaus Sachs and had Bulgarian arbitrator Stanimir Alexandrov and the UK’s Lord Hoffmann as its members. It ordered Pakistan to pay over $4 billion in damages to the TCC in addition to $1.7 billion in pre-award interest.
Pakistan moved a plea before ICC for annulment of the award on several grounds in November last year. An interim stay was granted automatically on the enforcement proceedings initiated by the TCC. The proceedings for the stay order took place in April via video link and the tribunal gave Pakistan the stay. The final hearing of the case will take place in May next year on the basis of which a decision will be made.
A good news
Pakistan is going through a tough time and the stay allows breathing space to the government which is grappling with multiple economic problems. The Attorney General’s office believes that the development is a big success for the country and its legal team.
Reko Diq – A major literal gold mine
Reko Diq is located in Balochistan and has a wealth of minerals including gold and copper. The estimated value of the reserves is close to $300 billion. The awarded projects were pulled back after a court decision that found irregularities in the processes.