The World Bank’s International Centre for Settlement of Investment Disputes (ICSID) has granted a stay of six months on the enforcement of a penalty awarded against Pakistan in the Reko Diq mining lease dispute, shared Attorney General's office in a statement on Thursday.
The stay has been granted on the enforcement of a $5.9 billion penalty, imposed by the ICSID on Pakistan for denying the mining lease to Australian company Tethyan Copper Company (TCC). The Attorney General's office called it a success for Pakistan and its legal team.
The fine was imposed in July 2019 and was challenged by Pakistan in November 2019. In a plea filed, Pakistan had requested for the annulment of fine and a provisional stay on the enforcement of the award issued against the country.
Pakistan was granted the provisional stay upon initiating annulment proceedings. The hearing took place over after which hearing over ‘video link’ in April this year. On Sept 16, 2020, the World Bank tribunal finally ruled in favour of Pakistan, confirming the stay on the enforcement of the award for a period of six months.
Reko Diq is a small desert town in Chagai district of Balochistan and is famous for its mineral wealth, including gold and copper. The area is located in Tethyan belt that extends all the way from Turkey and Iran into Pakistan.