15th Jul 2019 08:34
(Alliance News) - An international tribunal has ordered Pakistan to pay almost USD6 billion to a joint venture partly owned by Antofagasta PLC, the company said Monday.
The USD5.84 billion award has been made by the World Bank's International Centre for Settlement of Investment Disputes to Tethyan Copper Co Pty Ltd, a partnership between Antofagasta and Barrick Gold Corp.
The dispute centred on the alleged "unlawful" denial of a mining lease for the Reko Diq project in Pakistan in 2011.
Pakistan, which has "limited" grounds for a challenge, will pay USD4.09 billion based on a market value of the project in 2011, and interest of USD1.75 billion.
"We remain willing to discuss the potential for a negotiated settlement with Pakistan and will continue to protect our commercial interests and legal rights until the conclusion of this dispute," said William Hayes, the chair of Tethyan Copper.
A feasibility study, Antofagasta said, showed Reko Diq contained one of the world's largest undeveloped copper and gold deposits, with the potential to be mined for over half a century.
Antofagasta shares were 4.6% higher early on Monday at 902.40 pence each.
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