World Bank Awards Settlement in Reko Diq Arbitration
Damages include compensation of $4.087 billion in relation to the fair market value of the Reko Diq project at the time the mining lease was denied and interest until the date of the award of $1.753 billion. Compound interest continues to apply at a rate of US Prime +1% per year until the award is paid.
“After a lengthy and thorough arbitration, the tribunal has ruled upholding our rights,” said Barrick President and CEO Mark Bristow. “Along with our partners at Antofagasta, we remain willing to engage with Pakistan to explore the potential for a negotiated settlement.”
Prior to denial of the mining lease application, TCC completed a feasibility study that showed Reko Diq as one of the world’s largest undeveloped copper and gold deposits, with a potential mine life of more than 50 years and an estimated initial capital investment of more than $3 billion.