CURRENT AFFAIRS

2019

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Name the country which was penalized by World Bank Arbitration Court worth $5.8 billion for unlawful denial of a mining lease to Tethyan Copper Company for the Reko Diq project in 2011?

A	Pakistan
B	Bangladesh
C	Russia
D	China

Explanation:

Detailed explanation-1: -$11 Billion worth of penalties by ICSID and London court of Arbitration would be set aside. The government was expected to place the settlement before parliament and the supreme court.

Detailed explanation-2: -Tethyan had submitted the dispute to ICSID arbitration according to the terms of a bilateral investment treaty signed in 1998 between Pakistan and Australia. Pakistan argued that ICSID did not have jurisdiction over the dispute. A tribunal disagreed and issued its award against Pakistan.

Detailed explanation-3: -One of the largest undeveloped copper-gold projects in the world, Reko Diq is owned 50% by Barrick, 25% by three federal state-owned enterprises, 15% by the Province of Balochistan on a fully funded basis and 10% by the Province of Balochistan on a free carried basis.

Detailed explanation-4: -In July 2019, the tribunal slapped a whopping $5.97 billion award against Pakistan for denying the mining lease to the Australian company. The award, of nearly $6 billion, including the damages award and interest, is equal to about two percent of Pakistan’s GDP.

There is 1 question to complete.