Monitoring Desk: The International Centre for Settlement of Investment Disputes (ICSID) has directed Pakistan to pay $5.8 billion demerges to Tethyan Copper.
It is pertinent to mention that ICSID which acts as component of World Bank to settle down international disputes penalized Pakistan in 2017 for not fulfilling international commitments while dealing with Tethyan Copper. However, amount of settlement and demerges was needed to be calculated.
After announcement of ICSID the Chairman of Tethyan Board William Hayes said in a statement the company was still willing to strike a deal with Pakistan but company would continue to protect its commercial and legal interests until the dispute is settled down.
Tethyan Copper is a joint venture between Antofagasta Plc (ANTO.L) of Chile and Barrick Gold (ABX.TO) of Canada.
Ir is pertinent to mention that Tethyan Copper got contract from Pakistan government to explore minerals in Balochistan and discovered gold and other minerals at an area known as Reko Diq.
Reko Di is situated at the foot of an extinct volcano near Pakistani border connecting with Iran and Afghanistan. The deposit was set to rank among the world’s biggest untapped copper and gold mines.
According to documents, company invested over $220 million but all of sudden Pakistan government in 2011 refused to grant company mining lease.
Meanwhile, Supreme Court of Pakistan terminated the deal in 2013 stating that deal was against the interest of Pakistan.