World Bank court orders Pakistan pay $5.8bn damages to Tethyan Copper

--The company maintains it had invested more than $220m in Reko Diq by the time Pakistan’s govt, in 2011, unexpectedly refused to grant them the mining lease

SANTIAGO: A World Bank arbitration court has ordered the Pakistani government pay damages of $5.8 billion to Tethyan Copper, a joint venture between Chile’s Antofagasta Plc and Canada’s Barrick Gold, the Chilean miner said late on Friday.

Meanwhile, Pakistan has decided to challenge the verdict in an international court.

Tethyan Copper 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.

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.”

The Reko Diq mine has become a test case for

Prime Minister Imran Khan’s ability to attract serious foreign investment to
Pakistan as it struggles to stave off an economic crisis that has forced it to
seek an International Monetary Fund bailout.

Pakistan’s military sees Reko Diq as a

strategic national asset and had taken a key role in its development amid the
dispute with Antofagasta and Barrick, sources familiar with the situation told
Reuters earlier this year.