ISLAMABAD: Pakistan has rejected $11.5 billion damages claim made by the Tethyan Copper Company ltd (TCC) a joint venture between Antofagasta and Canada’s Barrick Gold Corporation in the Reko Diq case today.
The claim had been submitted in 2012 by the Tethyan Copper Company ltd (TCC). Later, in 2017 its claim for compensatory damages amounting to $9.1 billion based on a fair market value of its investments in the project till November 15, 2011. It has also filed a claim of $2.3 billion as pre-award compound interest.
Yesterday, the Attorney General for Pakistan (AGP) has stated that “the amount claimed in the international arbitration is being refused by Pakistan as highly disproportionate, being hundreds of times larger than any amounts invested by the claimant”.
“Pakistan is proactively following its defense in this and every case under all applicable arbitration and other methods. The amount proceedings have been suspended as a result of Pakistan’s disqualification challenge in regard of one honorable member of the tribunal, Dr Stanimir Alexandrov, which was filed based on the information acquired by Pakistan during the quantum phase of the arbitration”. He added.
The International Centre for Settlement of Investment Disputes (ICSID) before reaching the quantum phase, listened the parties‘ arguments on the arbitration of the issues of corruption related to the Tethyan Copper Company (TCC’) investment revealed during the local proceedings in Pakistan which in the end resulted in the Supreme Court’s finding in 2013 that the under joint venture agreement was null and in an ongoing inquiry into corrupt practices by foreign companies associated with the project, which is separate from the arbitration proceedings.
The certain aspects of the International Centre for Settlement of Investment Disputes (ICSID) arbitration proceedings are matter to specific confidential orders by the tribunal and as a result no further information can be shared at this point.