Reko Diq: Supreme Court of Pakistan validated ICSID process
19-Nov-2012 Diario Financiero – News
Counterpart claiming no agreement had been reached by the parties about a possible arbitration process
Reko Diq: Supreme Court of Pakistan validated ICSID process
In spite of firstly accepting the non-precedent appeal, the court decided to validate the international arbitration process
Last week the Supreme Court of Pakistan rejected an appeal against the ICSID participation in the dispute between Tethyan Copper (where Antofagasta PLC and Barrick are in-equal-amount partners) and provincial government of Balochistan where Reko Diq mine is located.
The court, headed by Iftikhar Muhammad Chaudhry, is also revising the claims against the Federal Government’s decision of granting mining rights for the gold and copper deposit. The justice officer has stated that due course of such granting is still to be resolved.
Raza Kazim, attorney of the Tethyan Copper (TTC) counterparts – a project that has required a US$500 million investment – states that a corruption felony has been constituted.
In response the justice officer has indicated the court is impartial and the Balochistan Government will be liable for any adverse resolution made by the ICSID. This is not a minor fact if one considers this is the poorest region in the country and amongst their legal advisors they have hired Cherie Blair, the wife of former Great Britain Prime Minister.
Although TTC has agreed to go to ICSID in November 2011 the problems between the parties are old. Already back in 2009 the Province wanted to grant a Chinese company, MCC, the rights for mining the same location approved for the Antofagasta PLC and Barrick joint venture, however in that opportunity the authorization was not finally given.
