The Reko Diq case was a long-running legal dispute between the government of Pakistan and

Tethyan Copper Company (TCC), a consortium of Barrick Gold and Antofagasta Minerals. The
dispute arose over the development of a massive copper and gold deposit in the Reko Diq area
of Balochistan, Pakistan.

Background

In 1993, the Balochistan Development Authority (BDA) entered into a joint-venture agreement
with BHP Minerals, an Australian mining company, to explore and develop the Reko Diq mineral
deposits. In 2006, BHP Minerals was replaced by TCC, a consortium of Barrick Gold and
Antofagasta Minerals.

TCC invested over $500 million in exploring and developing the Reko Diq project. However, in
2006, the Balochistan government refused to grant TCC a mining lease, citing environmental
concerns.

Legal Challenges

TCC filed a claim against Pakistan under the Australia-Pakistan Bilateral Investment Treaty
(BIT). The BIT provides for international arbitration of investment disputes between Australia
and Pakistan.

The arbitration tribunal ruled in favor of TCC in 2013, awarding TCC $6 billion in damages.
Pakistan challenged the award, but the International Centre for Settlement of Investment
Disputes (ICSID) upheld the award in 2017.

Out-of-Court Settlement

In 2022, Pakistan and TCC reached an out-of-court settlement. The settlement agreement
called for the establishment of a new joint venture company to develop the Reko Diq project.
The Pakistani government would hold a majority stake in the new company, with TCC holding a
minority stake.

Significance of the Case

The Reko Diq case was a landmark case in international investment law. It was the first time
that a BIT tribunal had awarded damages of over $1 billion. The case also highlighted the
challenges of developing natural resources in countries with weak governance and
environmental regulations.

Key Points

● The Reko Diq case was a long-running legal dispute between the government of Pakistan
 and TCC, a consortium of Barrick Gold and Antofagasta Minerals.
● The dispute arose over the development of a massive copper and gold deposit in the Reko
Diq area of Balochistan, Pakistan.
● TCC filed a claim against Pakistan under the Australia-Pakistan Bilateral Investment
Treaty (BIT).
● The arbitration tribunal ruled in favor of TCC in 2013, awarding TCC $6 billion in damages.
● Pakistan challenged the award, but the International Centre for Settlement of Investment
Disputes (ICSID) upheld the award in 2017.
● In 2022, Pakistan and TCC reached an out-of-court settlement.
● The settlement agreement called for the establishment of a new joint venture company to
develop the Reko Diq project.
● The Reko Diq case was a landmark case in international investment law.
● It was the first time that a BIT tribunal had awarded damages of over $1 billion.
● The case also highlighted the challenges of developing natural resources in countries with
weak governance and environmental regulations.