Reko Diq case: TCC starts proceedings for attachment of Pak assets

ISLAMABAD: Pakistan Thursday reaffirmed its commitment to protect its national assets wherever they might be located and pledged to vigorously pursue proceedings initiated by Tethyan Copper Company (TCC) in any jurisdiction.

Last year in July, the International Center for Settlement of Investment Disputes (ICSID) of World Bank had rendered almost $6 billion (Rs950 billion) award against Pakistan in Reko Diq case.

For enforcement of the $6 billion award in the Reko Diq case, Tethyan Copper Company (TCC) has sought attachment of certain assets belonging to Pakistani institutions. Pakistan, however, has reiterated to vigorously pursue proceedings initiated by the TCC in any jurisdiction

“Without prejudice to such engagement, it is reiterated that the Government of Pakistan shall vigorously pursue proceedings initiated by the TCC in any jurisdiction and the government reaffirms its commitment to protecting national assets, wherever they may be located,” says a statement issued by the office of Attorney General for Pakistan on Thursday.

The AG said the government was vigorously contesting these proceedings with all legal resources available to it. The Government of Pakistan is, however, also engaged to settle the matter amicably”, the statement added.

The AG office further stated that pursuant to the International Center for Settlement of Investment Disputes (ICSID) case filed by Tethyan Copper Company (TCC) against the Government of Pakistan in the year 2012 and the subsequent Award rendered by the ICSID Tribunal on 12 July, 2019, the TCC had initiated proceedings for enforcement of the Award before the High Court of Justice in the British Virgin Islands.

The TCC has sought attachment of certain assets belonging to the Pakistani institutions,” the statement said. Last year in July, the International Center for Settlement of Investment Disputes (ICSID) of World Bank had rendered almost $6 billion (Rs950 billion) award against Pakistan in Reko Diq case.

The arbitration case had started with the constitution of tribunal, and the final award announcement has been awaited since last year. The tribunal had concluded the case in 700-page verdict awarding a massive $4 billion in penalty and around $2 billion in interest and the expenditure incurred on the case by the TCC.

On 12 July 2019, the Government of Pakistan was ordered to pay $US5.84 billion ($A8.3 billion) to Tethyan Copper Company (TCC), a joint venture between Canadian miner Barrick Gold and Chilean Antofagasta Minerals.

On the next day on July 13, Prime Minister Imran Khan ordered formation of a commission to investigate and fix responsibility for the massive loss borne by Pakistan in the case. The prime minister had directed formation of a commission to investigate into reasons as to how Pakistan ended up in this predicament; who were responsible for making the country suffer such a loss and what were the lessons learnt, so that the mistakes made were not repeated in future.