By Oliver Griffin 
 

Antofagasta PLC (ANTO.LN) said Monday that its joint venture in Pakistan with Barrick Gold Corp. (ABX.T) has been awarded $5.84 billion in damages after it was denied a mining lease.

The Chile-based copper miner said the Tethyan Copper Company Pty Ltd. joint venture, that it holds equally with Canadian gold miner Barrick, was awarded the damages by the World Bank's International Centre for Settlement of Investment Disputes.

The dispute dates back to 2011 when Pakistan denied a lease for the Reko Diq project.

Following arbitration, damages include compensation of $4.09 billion in reference to the fair market value of the project when the lease was denied and interest of $1.75 billion, Antofagasta said.

An additional $62 million was also awarded to Tethyan Copper Company for the costs incurred from arbitration.

The award is binding on the parties and there are limited grounds for challenging the award, the company said.

 

Write to Oliver Griffin at oliver.griffin@dowjones.com; @OliGGriffin

 

(END) Dow Jones Newswires

July 15, 2019 02:32 ET (06:32 GMT)

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