A ruling by the World Bank’s arbitration court ordered the Government of Pakistan to pay US $ 5.8 billion to Tethyan Copper, a joint project of the Antofagasta and Barrick Gold miners, the Chilean company said in a statement.
More than a decade ago, Tethyan Copper discovered a huge reserve of minerals in Reko Diq, at the foot of an extinct volcano near the Pakistani border with Iran and Afghanistan. The deposit was to become one of the largest copper and gold deposits in the world.
The company said it had invested more than US $ 220 million when in 2011 the Pakistani government suddenly refused to issue an operating authorization that prevented it from continuing to operate.
An initial ruling by the World Bank dispute resolution center favored Chile’s Antofagasta Plc and its Canadian partner Barrick Gold, but had not yet set the amount in compensation that Pakistan had to pay.
Tethyan chairman William Hayes said in a statement that the company was still willing to reach an agreement with Pakistan, but added that it would continue to protect its commercial and legal interests until the legal dispute ends.