Antofagasta/Barrick JV wins $5.8bn damages from Pakistan

Antofagasta said its Tethyan Copper joint venture with Barrick Gold had been awarded $5.84bn in damages by the World Bank's arbitration court after the Pakistan government denied a mining lease for the Reko Diq project in 2011.

The damages include compensation of $4.08bn based on the fair market value of the project at the time of the mining lease denial, and interest until the date of the award of $1.753bn. The Tribunal also awarded just under $62m in costs.

"We are pleased to reach this milestone after more than seven years of arbitration," said Antofagasta chief executive Iván Arriagada.

Tethyan chairman William Hayes said the company was still willing to discuss the potential for a negotiated settlement with Pakistan and would “continue to protect our commercial interests and legal rights until the conclusion of this dispute".

The award is binding on the parties with limited grounds for challenge, the company said.

Prior to denial of the mining lease application, Tethyan had completed a feasibility study showing that Reko Diq was one of the world's largest undeveloped copper and gold deposits, and had a potential mine life of more than 50 years and an estimated initial capital investment of more than $3bn.