International Centre for Settlement of Investment Disputes (ICSID), the World Bank-funded international arbitration institution, has issued a stay order on the enforcement of the $6 billion penalty on Pakistan in the Reko Diq mining lease case.
Attorney General of Pakistan, Khalid Jawed Khan, has termed the ICSID’s decision as a tremendous success for Pakistan and its legal team.
Last year in July, the ICSID had imposed a $6 billion penalty on Pakistan following the Supreme Court’s decision in 2013 which revoked the mining lease of Tethyan Copper Company (TCC), a consortium of the Chilean Antofagasta PLC and Canadian Barrick Gold Corporation, for the Reko Diq project.
In November 2019, Pakistan had lodged a petition in the ICSID seeking a stay order on the enforcement of the $6 billion fine along with a plea for the annulment of the penalty.
Pakistan’s appeal for quashing the $6 billion penalty is still being heard in the ICSID and a final decision is expected in May 2021.
Reko Diq, a small town in Chagai, Balochistan, has the biggest gold and copper deposits in Pakistan. Once fully developed, 250,000 ounces of gold and 200,000 tons of copper can be extracted from the mines each year for the next 50 years.