Over 5 billion dollar penalty imposed on Pakistan in Reko Diq case

2 min read
  1. The World Bank’s International Centre for Settlement of Investment Disputes(ICSID) has imposed a penalty of $5.95 billion against Pakistan in the Reko Diq case.
  2. The penalty was imposed on Pakistan for unlawful denial of a mining lease to a Tethyan Copper Company(TCC) for the Reko Diq project in 2011.The company had claimed 11.43 billion dollars in damages.
  3. Reko Diq Mine is one of the world’s biggest untapped copper and gold deposits located in Balochistan,Pakistan.Reko Diq area is buried at the foot of an extinct volcano near the frontier with Iran and Afghanistan.
  4. It has estimated reserves of 5.9 billion tons of low-grade copper and gold reserves amounting to 41.5 million oz.
  5. ICSID is an international arbitration institution established in 1966 for legal dispute resolution and conciliation between international investors.
  6. The ICSID is part of and funded by the World Bank Group.It is headquartered in Washington,D.C,United States.It was established by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States.