Pakistan Loses Mining Case, Expected to Pay Billions in Damages

Pakistan could be forced to pay a penalty amounting to billions of dollars to the Tethyan Copper Company (TCC) in the on-going Reko Diq mining dispute.

An arbitration tribunal of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) ruled against Pakistan on Tuesday, and rejected the country’s final defence against liability. The tribunal will commence its proceedings from Wednesday, March 22, to determine the exact amount of penalty Pakistan must pay to the TCC after considering submissions from both parties.

A final ruling on the damages is expected in 2018.

Background of Reko Diq Case

TCC, a copper and gold mining company, is a joint venture between Antofagasta of Chile and Canada’s Barrick Gold Corporation, the world’s largest gold mining company. TCC, in partnership with Government of Balochistan, had been evaluating the development of a copper-gold mine at Reko Diq, a small town located in Chagai district, Balochistan. According to TCC’s website, the company has invested over USD 220 million, excluding acquisition costs, into the project since 2006. TCC filed a case in 2011 claiming that Pakistan had unlawfully denied it a mining lease.

 

Pakistan’s Arguments Dismissed Against TCC

According to a statement issued by Barrick Gold Corporation, the decision by the arbitration tribunal of the World Bank “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 tribunal’s final ruling will entitle TCC to an award equal to fair market value of the project at the time the mining lease application was denied. The Reko Diq project was expected to require an initial capital investment of USD 3.3 billion.

Reko Diq has one of the world’s largest undeveloped gold and copper deposits, with a potential mine life of 56 years.

Source: Dawn / The News


  • ImranG

    Article failed to explain why the government denied mining lease to this company.

    • Jawad Hussain

      Govt. did not denied, SC orders not to give lease. it was given on extremely shameful conditions. Pakistan will get only 0.5% (not that sure about it but it is not over 2%) OF THE PROFIT and there will be no tax on income or whatever TCC get from Reko Diq. all things (carved from ground, whatever it is) will be sole property of TCC, govt. of Pakistan have nothing to do with it.

      • Waqas

        2%? These are crumbs of our own bred. what a joke this failed country is.

        • Muhammad Usman

          True our representatives should be ashamed of making such agreements. Lets see what comes out of box at CPEC.

          • Jawad Hussain

            CPEC is China’s headache……. they just needed a route and we provided them with it, or it can b said they got it from us. there will be no corruption in it but also we wont have any proper benefit.

          • Waqas

            Same thing is coming out of CPEC. All the billions are soft loans. And all the project will be awarded to chinese companies. Chinese engineers and officials will be hire. But for shovel work they can drop some crumbs for poor pakistanis.

            • Muhammad Usman

              another east india type thing. But this time chinese will eat us without cooking. They are already good in eating all animals on earth.

              • Tayyab

                actually power projects in cpec are really good for us, sure chinese companies are building them but these loans will not be repaid by govt but by owners of power plants after selling electricity and our people will work in them after chinese construction teams leave. Definitely would be better if our seths would invest and build them but why would they invest large money in any useful project when they already make easy billions selling sugar, cement, plots etc

                • Muhammad Usman

                  Definitely.

        • Jawad Hussain

          i think its 0.5% ONLY, nothing else at all. they were not even willing to give jobs to locals. there is a term being added “locals, if found suitable, will be given appropriate tasks”……. and its not explained what is meant by “found suitable”

          • Tayyab

            2% royalty actually, international standard is 5-6%. Govt of balochistan was 25% partner and would have 25% of revenue which would not have been so bad except that goras would give loan for 25% investment of gov and take back most revenues as interest on loan. Plus what went really bad was corrupt people on our side gave almost east india compnay like rights to that company on our land which kept on extending from initial area of 30-40km

            • Muhammad Usman

              very bad.

  • Jawad Hussain

    its most disputed mining project in the history of this globe. kala bagh dam is nothing in-front of it. we have been taught how not to use our resources and waste money so that other can takeover.
    we keep on saying Pakistan have potential, show me where it is! we are only here to be fu**ed by upper class politicians.

    • Manoftruth

      We have potential check statistics, Top Pooorrn searching nation contributed by both males and females…!!

      • Muhammad Usman

        hahaha,,

      • Talal

        bhossri k, p*rn is made by westerners, watched most by them. Pakistanis mostly use search engines to access those sites because of not knowing name of such sites. So there is this propaganda that pakistanis are top p*rn searchers.

    • Muhammad Usman

      We are solely responsible for it. We don’t come out of our comforts and take ruling elite down. They are enjoying and country is being looted at large.

      • Jawad Hussain

        Yes Sir, thats why, i used the term “we” not govt.

  • G.j. Raza

    And look at the irony….. not a single news headline on any channel…we really need to stand up against these fuks…

  • Tariq Jamshaid

    If these mines are supposed to carry on for 65 years then it must be more than $3.5 billions the truth is this is how the western thieves will loot the under developed countries by bribing corrupt politicians and undervaluing the the the real value which is $3 trillions in this case and of coarse world bank is always behind big cooperations
    But Pakistan has changed and will not surrender its assets for peanuts.