The World Bank’s International Centre for Settlement of Investment Disputes has awarded a joint venture between London-listed Antofagasta and Toronto-listed Barrick Gold $5.84-billion in damages.
The joint venture, Tethyan Copper Company (TCC), has filed for damages against the government of Pakistan, following a denial of a mining lease for the Reko Diq project in 2011.
Damages include compensation of $4.087-billion by reference to the fair market value of the Reko Diq project at the time of the mining lease denial, and interest until the date of the award of $1.753-billion. The Tribunal also awarded TCC just under $62-million in costs incurred in enforcing its rights.
TCC chairperson William Hayes said the company was willing to discuss the potential for a negotiated settlement with Pakistan, a gesture which the country’s government reportedly welcome.
Prior to denial of the mining lease application, TCC had completed a feasibility study showing that Reko Diq was one of the world's largest undeveloped copper and gold deposits, and had a potential mine life of over 50 years and an estimated initial capital investment of over $3-billion.