Pakistan Owes $5.9bn in Reko Diq Case
World Financial institution physique publicizes extent of damages Islamabad owes Tethyan Copper Firm
The Worldwide Centre for Settlement of Funding Disputes (ICSID) has ordered Pakistan to pay damages of $5.976 billion to the Tethyan Copper Firm within the Reko Diq case.
A World Financial institution arbitration court docket, the ICSID facilitates conciliation and arbitration of worldwide funding disputes. In a 700-page ruling delivered on Friday, it awarded Tethyan a $four.08 billion penalty and $1.87 billion curiosity.
Native media has reported that Pakistan would doubtless problem the award shortly and file a revision utility in a bid to get a decrease penalty. This course of can take wherever from two to a few years.
In a press release issued by Tethyan board chair William Hayes, he mentioned the corporate was nonetheless “keen to strike a cope with Pakistan.” Nonetheless, he added, “it [Tethyan] would proceed defending its business and authorized pursuits till the dispute was over.”
Tethyan found massive portions of mineral wealth in Reko Diq over a decade in the past. It mentioned it had invested greater than $220 million within the mission by the point the provincial authorities of Balochistan determined towards granting a mining lease wanted to proceed operations. The case reached Pakistan’s Supreme Court docket the place then-chief justice of Pakistan Iftikhar Chaudhry declared void a 1993 settlement between Tethyan and the federal authorities and mentioned the mining firm had no rights with respect to the Reko Diq settlement.
After the judgment towards it in Pakistan, Tethyan continued its case earlier than the ICSID, which dominated towards Islamabad in 2017. The damages owed to Tethyan, nevertheless, have solely simply been revealed.
This isn’t the primary time considered one of Chaudhry’s judgments has resulted in a heavy value for Pakistan. The nation can also be set to pay a $900 million penalty to Turkish power firm Karkey, whose rental energy mission was terminated on the orders of a Chaudhry-led Supreme Court docket bench. Makes an attempt to settle with Karkey had been additionally scuttled by Chaudhry.