Tethyan Copper Company Pty Limited v. Islamic Republic of Pakistan (ICSID Case No. ARB/12/1)

In the context of an ICSID arbitration against the Islamic Republic of Pakistan, CRA was retained to assess the fair value of a gold and copper property on behalf of the respondent. The arbitration was launched by Tethyan Copper Company Pty Limited, a joint venture between Antofagasta plc and Barrick Gold Corporation.

Tethyan’s claims of over $8.5 billion resulted from Pakistan’s alleged denial of a mining lease for the Reko Diq project in 2011. The case involved the valuation of Reko Diq, located in the Pakistani province of Balochistan, which contains one of the largest undeveloped copper and gold deposits in the world, with a potential mine life of more than 50 years.

James Burrows testified for the Islamic Republic of Pakistan and opined that fair market value was best assessed based on past transactions, adjusted by several factors occurring between those transactions and the Valuation Date. These factors included changes in world metals markets and country risk, as well as any subsequent efficient, proven investments that might have been taken into account by a hypothetical buyer of the asset on the valuation date. CRA’s team also included Tiago Duarte-Silva, Aaron Dolgoff, and Michael Loreth.