World Bank International Center for the Settlement of Investment Disputes (ICSID) has ruled that Venezuela must pay $740.3m to Gold Reserve for cancelling the Las Brisas gold project.

The three-member tribunal has asked Venezuela to pay the amount under the provisions of the Canada-Venezuela Bilateral Investment Treaty (BIT), which should be made immediately with any unpaid amounts accruing interest at Libor plus 2% per year.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Following the evaluation, the ICSID ruled that $713m must be paid based on the project’s market value, as well as an additional $22.3m interest and $5m for the company’s legal and technical expenses.

"We feel vindicated by the tribunal’s clear conclusion that the Venezuelan Government acted unlawfully in terminating the Brisas project in direct violation of the BIT."

In 2009, Venezuela terminated the concession in one of Latin America’s gold deposits in an effort to enhance the state control of key economic sectors, following which Gold Reserve approached World Bank’s ICSID seeking $2.1bn in damages, Reuters reported.

Around $300m was spent on the project by Gold Reserve before the government revoked its permission for mine development.

See Also:

Gold Reserve president Doug Belanger said: "We feel vindicated by the tribunal’s clear conclusion that the Venezuelan Government acted unlawfully in terminating the Brisas project in direct violation of the BIT.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"We are gratified to know that all of our hard work prior to the unlawful termination of the project and subsequently in the execution of our claim against the Venezuelan Government has been rewarded.

"We are hopeful that Venezuela will satisfy its obligations to the company without delay and without any further legal proceeding.

"Should they fail to do so, we are prepared to pursue all available means to ensure that the amount awarded to the company is recovered in full."

Energy