Tethyan Copper v Pakistan (ICSID Case No. ARB/12/1)
- Forum
- ICSID 1
- Case number
- ARB/12/1 1
- Parties
- Tethyan Copper Company Pty Limited (Australian) and the Islamic Republic of Pakistan 1
- Treaty
- Australia Pakistan BIT of 1998 1
- Tribunal
- Klaus Sachs (President), Stanimir A. Alexandrov, Leonard Hoffmann 1
- Award
- 12 July 2019 1
- Award amount
- US$5.84 billion, per Barrick company statement 2
- Post-award
- Annulment and revision applications, both discontinued 6 January 2023 1
The claim
The request for arbitration was registered on 12 January 2012 1. Tethyan Copper Company (TCC) is a joint venture held equally by Barrick and Antofagasta, according to a Barrick company statement 2. The claims concerned the denial of a mining lease for the Reko Diq copper and gold project in 2011 2.
Pakistan proposed the disqualification of arbitrators more than once 1. Its proposal against all three members, filed on 25 November 2017, was declined by the Chairman of the ICSID Administrative Council on 5 February 2018 1. The tribunal issued decisions on jurisdiction and liability and on Pakistan's application to dismiss the claims on 10 November 2017 1.
The award
The tribunal rendered its award on 12 July 2019 1. In a company statement of 15 July 2019, Barrick said the award totalled US$5.84 billion 2. It said US$4.087 billion was compensation based on the fair market value of the project when the lease was denied and US$1.753 billion was interest to the award date 2. Barrick said compound interest at US Prime plus 1 percent a year runs until payment 2.
Barrick chief executive Mark Bristow said the tribunal had ruled upholding the company's rights and that Barrick was open to settlement talks 2. The ICSID case page does not set out the award's reasoning 1.
Annulment and revision
| Date | Step |
|---|---|
| 18 November 2019 | Pakistan applies for annulment, provisional stay of enforcement 1 |
| 25 March 2020 | Ad hoc committee constituted (Joongi Kim, President) 1 |
| 17 September 2020 and 30 October 2020 | Decisions on termination of the stay of enforcement 1 |
| 16 March 2021 | Pakistan applies for revision, provisional stay 1 |
| 7 September 2021 | Tribunal decides on termination of the stay in the revision proceeding 1 |
| 18 April 2022 | Annulment proceeding suspended by agreement 1 |
| December 2022 | Parties request discontinuance of both proceedings 1 |
| 6 January 2023 | Discontinuance noted under ICSID Arbitration Rule 43(1) 1 |
Settlement and status
Barrick says the reconstitution of the Reko Diq project was completed in December 2022 3. It says the project is now owned 50 percent by Barrick, 25 percent by three federal state-owned enterprises and 25 percent by the Government of Balochistan 3.
The parties asked ICSID to discontinue the annulment and revision proceedings in December 2022 1. The terms of the settlement are not set out in the sources opened for this page, and no source opened says the award was paid 1,3.
Common questions
How much was the Tethyan award against Pakistan?
Barrick said the 12 July 2019 award was US$5.84 billion, including US$1.753 billion in interest 2.
Was the Reko Diq award annulled?
No. Pakistan's annulment and revision proceedings were discontinued on 6 January 2023 1.
Who owns Reko Diq now?
Barrick says it holds 50 percent, three federal state-owned enterprises 25 percent and Balochistan 25 percent 3.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.
Sources
- ICSID: case details, Tethyan Copper Company Pty Limited v. Islamic Republic of Pakistan, ARB/12/1
- Barrick, company statement: Barrick Announces Reko Diq Arbitration Award (15 July 2019)
- Barrick, company page: Reko Diq
Related
- ICSID annulment explained
The five grounds for annulling an ICSID award, the deadlines, stays of enforcement and how many awards ad hoc committees have annulled.
- Investor-state arbitration explained
How foreign investors bring claims against states, where consent comes from, what law applies and how ICSID cases have ended, with official figures.
- Enforcing arbitration awards against states
How ICSID and New York Convention awards are recognised, and how state immunity from execution limits what assets can be seized in the UK and US.