Islamabad: A penalty of over five billion dollars was imposed on Pakistan by the World Bank arbitration court for 2011 Reko Diq case.
The Tethyan Copper Company had approached the International Court for the Investment Disputes in 2012 after the Balochistan government declined its lease request. The international tribunal on Saturday announced in a 700-page ruling that Pakistan has to pay USD 5.8 billion to Tethyan Copper for damages, media reported.
In 2013 Pakistan's Supreme Court had terminated the deal, but the mining company has already invested over $220 million on the Reko Diq project.
However, the case between the Pakistani government and the company continued for seven years.
William Hayes Tethyan Copper, chairman in a statement, said that the company is still willing to establish a deal with Pakistan but they would continue to protect its commercial and legal interests until the dispute is over.
Meanwhile, Pakistan Prime Minister Imran Khan had issued orders to investigate and fix the massive loss borne by Pakistan in the Reko Diq case.
Reko Diq is a dusty town in Chagai district where Pakistan had conducted the nuclear test in 1998. Incidentally, it is also famous because of its vast gold and copper reserves and is believed to have the world fifth largest gold deposit in the world.
The Attorney General's office issued a press release stating that Islamabad together with the Balochistan government was analysing the legal and financial effects of the court orders and that the government was considering all aspects of the matter and will decide the future course with a consultation.
The press release said that Pakistan had the right to use all legal options available under the international laws. The government also welcomed Tethyan Copper Company's offer to resolve the issue through negotiations. It also welcomed all the international investors to Pakistan.
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