White & Case Secures US$740.3 Million ICSID Arbitration Award for Canadian Gold Mining Company
Washington, DC, September 25, 2014 – In an important victory for Canadian gold mining company Gold Reserve Inc., the White & Case international arbitration team secured an award of US$740.3 million, including interest and costs, against the Bolivarian Republic of Venezuela following the arbitration of claims under the Canada-Venezuela Bilateral Investment Treaty.
The arbitration took place under the auspices of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) under the arbitration rules of its Additional Facility. The unanimous award is one of the largest rendered by an ICSID tribunal to date.
The claims in the case related to Gold Reserve’s rights to develop the Brisas gold and copper mining project in Southeastern Venezuela, one of the largest undeveloped gold and copper deposits in the world. Gold Reserve’s claims centered on Venezuela’s unreasonable delays in completing the permitting for construction of the mine followed by rescission, for pretextual reasons, of the project permits and mining licenses, resulting in the total deprivation of all rights to develop the project. Compensation was sought in the amount of the fair market value of the Brisas project development rights.
This representation highlights White & Case’s world-leading expertise in handling the most complex and significant international arbitrations and builds on our strong track record of success for our clients, including in important natural resources sectors such as mining and metals.
In a press release published on September 22, 2014, Gold Reserve's President Doug Belanger stated, "The board of directors, management and employees of the Company are pleased that the Tribunal was unanimous in deciding all phases of the Award in favor of the Company … On behalf of the Board, we thank our legal team at White & Case, led by Abby Cohen Smutny and Darryl Lew and supported by a host of talented and dedicated professionals." The entire Gold Reserve press release is available at: goldreserveinc.com/documents/grz%20nr%2014-09(1).pdf
The White & Case team was led by partners Abby Cohen Smutny, Darryl S. Lew and Hansel Pham, together with associates Petr Polášek and Michael Roche.
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