Reko Diq dispute: World Bank stays enforcement of award

ISLAMABAD: The World Bank’s International Centre for Settlement of Investment Disputes (ICSID) has granted a stay on enforcement of the award issued against Pakistan in the Reko Diq dispute. This is a success for Pakistan and its legal team, says a press release from the office of the Attorney General for Pakistan.In July 2019, an ICSID Tribunal granted an award of nearly $6 billion against Pakistan for denying a mining lease to an Australian company, Tethyan Copper Company (TCC). Immediately thereafter, the TCC commenced proceedings for enforcement of the award. In November 2019, Pakistan challenged the award and initiated proceedings seeking its annulment. Pakistan was granted provisional stay upon initiating annulment proceedings. A hearing to confirm the stay order took place over video-link in April 2020. On September 16, 2020, the tribunal finally ruled in favour of Pakistan, confirming the stay on enforcement of the award.

The ICSID is still considering Pakistan’s appeal against enforcing the penalty over its cancellation of the Reko Diq mining lease for TCC, a 50-50 joint venture of Barrick Gold Corporation of Australia and Antofagasta PLC of Chile, and a final hearing will take place in May 2021.