International Court of Arbitration has imposed a penalty of over $5 billion in Pakistan as it unlawfully denied a mining lease to a company called Tethyan Copper Company for Reko Diq project in 2011. This penalty is one of the biggest in the history of cash-strapped Pakistan.
In 2012, Tethyan Copper Company (TCC) filed claims for international arbitration to the International Centre for Settlement of Investment Disputes (ICSID) of World Bank after the Pakistan government rejected a leasing request from the company in 2011.
TTC, a joint venture between Chilean mining company Antofagasta and Canada’s Barrick Gold Corporation, claimed $11.43 billion in damages caused by the Pakistan government. The case between the Pakistan government and company continued for 7 years.
Earlier in August 2010, TCC established the basis for mine development at Reko Diq. It submitted a mining lease application in February 2011 which was rejected by the Pakistan government in November and the project was stopped.
The International Arbitration Court is an institute that arbitrates international commercial disputes. It is a part of the International Chamber of Commerce (ICC). ICC headquarters is in Paris, France. The court consists of more than 100 members from about 90 countries.