Islamabad: In a major blow to Pakistan, the World Bank arbitration tribunal has passed its judgement in the case of Reko Diq gold mine project in favour of Teythan Copper Company Pvt Ltd (TCC).
As a result of this decision, Pakistan may be liable to pay $11.5b in damages for not awarding this contract to TCC. The tribunal has directed Pakistan to file its response in regards to TCC’s damages claim by the 21st of July.
Before the dispute, the Balochistan govt had held 25pc stake and TCC 75pc majority shareholding in the Reko Diq project. TCC says it has invested over $500m into feasibility studies, scope and exploration of this project and the total investment was forecast to be in the realm of $5b over a period of five years.
At the end of March an arbitration tribunal of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) has ruled against Pakistan in the Reko Diq gold-cum-copper mine project.
The decision went in favour of Tethyan Copper Company (TCC) — a joint venture between Antofagasta of Chile and Barrick Gold Corporation of Canada — which filed the case in 2011 claiming that Pakistan had unlawfully denied a mining lease.
According to a statement issued then by Barrick Gold, the world’s largest gold mining company, the decision 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
