AVZ Faces Uphill Battle for Potential DRC Arbitration Award, page-12

First 12 Last

Share
Profile

Follow
NeilDiamondz

524 Posts.

575

18/04/24

16:08

Post #: 73410714
Share
Originally posted by morningsuits5: ↑

Here is a summary of the Bear Creek dispute with Peru. The ICSID tribunal ruled in favour of Bear Creek but they were only awarded $18m in damages. Their project was more advanced than AVZ.

Parties Involved:
Claimant:Bear Creek Mining Corporation (Canadian mining company)
Respondent:Republic of Peru
Background:
Bear Creek Mining Corporation held mining concessions for the Santa Ana silver project in Peru.
In 2011, the Peruvian government issued Supreme Decree 032, which effectively revoked Bear Creek's mining concessions. This was in response to social protests against the project.
The Arbitration:
Bear Creek initiated arbitration proceedings against Peru in 2014 at the International Centre for the Settlement of Investment Disputes (ICSID).
The claim was brought under the Canada-Peru Free Trade Agreement.
Bear Creek alleged that the Peruvian government's actions amounted to an indirect expropriation of their investment and a violation of fair and equitable treatment standards, among other treaty breaches.
The Award (2017):
The ICSID Tribunal largely ruled in favor of Bear Creek Mining Corporation.
Key findings:
Peru's Supreme Decree 032 constituted an unlawful indirect expropriation of Bear Creek's investment in the Santa Ana project.
Peru had breached its obligations to Bear Creek under the Canada-Peru Free Trade Agreement.
Bear Creek had acted in accordance with Peruvian law regarding community outreach, which Peru had supported and approved.
Damages:
The Tribunal decided not to award damages based on the project's potential future profits (using a discounted cash flow method), as it deemed the project too speculative at the time.
They awarded approximately US $18 million in sunk costs, representing the amount Bear Creek had already invested in the project.
Post-Award:
Peru challenged aspects of the award.
Bear Creek indicated its intent to cooperate with the Peruvian government for the Corani project (a different silver project in Peru), following the award's outcome.
Significance:
The Bear Creek case highlights the complexities of resource development projects, the interaction between foreign investment and local communities, and the role of international investment law in resolving such disputes.
Sources for Further Information:
Award:https://www.italaw.com/cases/documents/6322
Bear Creek Mining News Release:https://bearcreekmining.com/news/2017/award-announced-in-bear-creek-minings-santa-ana-arbitration/

Expand

Wait was Peru just about to receive a rail line through its country thus drastically improving mining profitability?

Last I checked Manono wasn’t in Peru and the USA/ EU were desperate to disrupt China’s illegal stranglehold on critical minerals.

think bigger bro
AVZ Price at posting: 78.0¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 37 more messages in this thread...

First 12 Last

Add AVZ (ASX) to my watchlist

AVZ Faces Uphill Battle for Potential DRC Arbitration Award, page-12

Featured News

Dominos looks tasty and tempting, but could be too spicy and even dicey

Triangle gets approval for Perth Basin carbon sequestration project

Pearl Gull Iron snaffles REE project in Chile, noting geological echoes of China

Week 24 Wrap: US contagion sentiment not so contagious; iron ore remains pressured

ASX Market Close: Consumer Discretionary rises ahead of interest rates decision | June 14, 2024

Maiden production at Alta Mesa puts Boss on the charge for 3Mlbs target

Telix dips as pharma giant abandons US IPO for NASDAQ listing – despite record run

ASX Market Close: Unemployment dips as index climbs | 13 June, 2024

Whitebark launches $1.5M capital raise to progress QLD geothermal assets

Lightning spots additional pegmatites during first Brazilian visit

AVZ Faces Uphill Battle for Potential DRC Arbitration Award, page-12

Featured News

Top Stories

Dominos looks tasty and tempting, but could be too spicy and even dicey

Triangle gets approval for Perth Basin carbon sequestration project

Pearl Gull Iron snaffles REE project in Chile, noting geological echoes of China

Week 24 Wrap: US contagion sentiment not so contagious; iron ore remains pressured

ASX Market Close: Consumer Discretionary rises ahead of interest rates decision | June 14, 2024

Maiden production at Alta Mesa puts Boss on the charge for 3Mlbs target

Telix dips as pharma giant abandons US IPO for NASDAQ listing – despite record run

ASX Market Close: Unemployment dips as index climbs | 13 June, 2024

Whitebark launches $1.5M capital raise to progress QLD geothermal assets

Lightning spots additional pegmatites during first Brazilian visit