Reko Diq case: World Bank rules against Pak

An arbitration tribunal of the World Bank's International Center for Settlement of Investment Disputes (ICSID) has ruled against Pakistan with regard to the unlawful denial of a mining lease for the Reko Diq project in 2011.

The verdict came on Monday after Tethyan Copper Company Limited (TCC), a joint venture between Antofagasta and Barrick, filed an arbitration claim against Pakistan, reports the Express Tribune.

"The decision by the ICSID tribunal rejected Pakistan's final defense against liability, and confirmed that Pakistan had violated several provisions of its bilateral investment treaty with Australia, where TCC is incorporated," Chilean mining company Antofagasta announced.

However, the claims could not be independently verified.

Earlier in January 2013, the Supreme Court had declared invalid the Reko Diq agreement - a lease for one of the world's richest deposits of gold and copper in Balochistan held by the TCC - observing that the agreement ran counter to the country's mineral development act and mining concession rules.

Reko Diq is one of the world's richest deposits of gold and copper held by a Canadian-Chilean consortium that includes Vancouver-based giant Barrick Gold.