Pakistani PM Khan orders probe into $7.9 billion penalty over mining lease
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Pakistani Prime Minister Imran Khan has ordered a special commission to look into those responsible for losing the country US$5.84 billion (S$7.92 billion).
PHOTO: AFP
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ISLAMABAD (DPA) - Prime Minister Imran Khan has ordered investigations into the massive US$5.84 billion (S$7.92 billion) penalty imposed on Pakistan by the international arbitration tribunal of the World Bank following the denial of a major mining lease in 2011.
A special commission will investigate those responsible for making Pakistan suffer such a loss, the Dawn newspaper reported on Monday (July 15).
On Friday, the International Centre for Settlement of Investment Disputes (ICSID) ruled after more than seven years of arbitration claims filed against the country by Tethyan Copper Co Pty Limited.
"The government of Pakistan reserves its right to pursue any and all legal remedies available to it under the ICSID regime, international law and all other relevant laws to safeguard its interests," a statement issued by the attorney-general's office said.
Tethyan Copper, a joint venture held equally by Antofagasta and Barrick Gold Corp, had claimed US$8.5 billion in damages against Pakistan for rejecting its lease application for mining in Reko Diq, in the restive province of Balochistan.
"We remain willing to discuss the potential for a negotiated settlement with Pakistan and will continue to protect our commercial interests and legal rights until the conclusion of this dispute," Tethyan Copper Chairman William Hayes said.
Pakistan said it welcomes the offer to work towards a negotiated settlement.
Tethyan Copper had completed a feasibility study before the denial of the mining lease application.
The study showed that Reko Diq had one of the world's largest undeveloped copper and gold deposits, and had a potential mine life of over 50 years and an estimated initial capital investment of over US$3 billion.
