Mining firm approaches Virgin Islands court for enforcement of Reko Diq award against Pakistan
The Tethyan Cooper Company (TCC) has approached the High Court of Justice in the British Virgin Islands for the enforcement of the $5.97 billion award against Pakistan by the International Centre for Settlement of Investment Disputes (ICSID) in the Reko Diq case.
The office of the Attorney General for Pakistan, however, has assured that Pakistan is vigorously contesting these proceedings using all available legal resources. The government is also engaged to settle the matter amicably.
Magic mountains: The Reko Diq gold and copper mining project
On November 20, the company had moved the high court for the enforcement of the award which includes attachment of the assets belonging to the Pakistan International Airlines Investment Ltd (PIAIL) — a company which is also incorporated in the British Virgin Islands.
On December 16, the high court had granted a stay order ex-parte without hearing Pakistan, but the government will contest the case when it will be taken up again on January 7, 2021.
"Without prejudice to such engagements, Pakistan has reiterated that the government will vigorously pursue proceedings initiated by the company in any jurisdiction and the government reaffirms its commitment to protecting national assets wherever they may be located," a statement by the attorney general's office said.
The ICSID tribunal had taken up the dispute between Pakistan and the TCC; the latter had claimed $8.5bn after the Mining Authority of Balochistan rejected its application for the multi-million dollar mining lease in the province in 2011.
Earlier, Pakistan had taken the plea before the tribunal that the agreement/mining licence at Reko Diq was procured through corrupt means and therefore, the mining company cannot ask for damages.
The TCC is a 50-50 joint venture of Barrick Gold Corporation of Australia and Antofagasta PLC of Chile whereas the Reko Diq district in southwest Balochistan is famed for its mineral wealth, including gold and copper.