GREY:LYDIF - Post by User
Post by
stargazer1on Nov 26, 2019 5:12pm
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Post# 30395344
Normal results of bilateral investment arbitration
Normal results of bilateral investment arbitration Bilateral investment arbitration concerning RTB Bor, a copper mining and smelting company in which the Republic of Serbia took over the mine. The arbitration ruled in favor of the mining company. The company asked for USD 100 million for breaches of the foreign investors’ standards of treatment under the 1997 Greece-Yugoslavia Bilateral Investment Treaty (the “BIT”).
The court awarded the company $40 million, basing its award on what it calculated the company would have been due at the time that its mine was confiscated. This is the normal practice of the arbitration court. Companies suing a country only get a fraction of what they are asking. However, as in this case, the court ordered Serbia to pay USD 40 million, including interest.
The ruling can not be contested by either side.
Over the years I've noticed that mining companies usually receive less than half of what they are asking. However, the court usually does rule in their favor.
Even 40% of what we are asking would-be multiples higher than our present stock price. On the other hand, if a company does instigate arbitration and the lose, they can not contest the decision.