The UNICTRAL Tribunal’s $24 million US award is indeed both extremely disappointing and a shock to us, Stans’ shareholders.
My guess is the Tribunals’ arbitrators only took into account Stans’
basic investment costs ,comprising January 2011 investment cost to purchase (i)The 20 year license for the Kutessay II Ree mine ($ 6 US million), (ii) The costs to purchase title to the road to the mine, (iii)the rail head siding and gantry, (iv) The acquisition of the Kashla Ree Plant ( Completed May 26 2011) and (v) Refurbishing costs, such a reroofing the entire plant and plant modernization.
I question if the tribunals’ arbitrators fully took into account (i) Stans’ valuation, as prepared and reported by
independent experts at Compass Lexecon. This valuation report assessed the value of Stan’s investments in Kutessay II and Kalasay at US $128,300.00. Also claims interest, that to-date, (Feb 2016), amounted to US $91,030,000. Total investment: US $ 219,330,000.!!! Presumably Compass Lexecon’s evaluation also included investments by Stans in Partnerships and the Kalasay 65 people workforce Stans employed. Yes, based on a REE metal sample presented at an AGM, technically speaking Kalasay was up and running producing REE metals.prior to the expropriation of the mining licence.
Russian Partnerships comprised:
VNIIHT-Russian Research Institute of Chemical Technology. Stans contracted VNIIHT to develop upscale REE extraction/processing technology. ( If I correctly recall the cost of this contract was very roughly around USD $ 3 to 6 million.)
ADDITIONAL AWARD?
I think Stans may have a case to request the arbitral tribunal to make an addition award as to the claims presented in the arbitral proceedings. According to the UNICITRAL Arbitration Rules (As revised 2010); Stans within the next 30 days could request the arbitral tribunal to make an addition award. See the following extract from UNICITRAL Arbitration Rules (As revised 2010)
Additional award Article 39 1. Within 30 days after the receipt of the termination order or the award, a party, with notice to the other parties, may request the arbitral tribunal to make an award or an
additional award as to claims presented in the arbitral proceedings but not decided by the arbitral tribunal. 2. If the arbitral tribunal considers the request for an award or additional award to be justified, it shall render or complete its award within 60 days after the receipt of the request. The arbitral tribunal may extend, if necessary, the period of time within which it shall make the award. 25 3. When such an award or additional award is made, the provisions of article 34, paragraphs 2 to 6, shall apply.
I would appreciate any thoughts / criticism concerning if Stans’ has a case to request for an Additional Award. UNICITRAL USD $24 Million award does not make any sence, given that previously the Moscow Commercial Arbitration Court awarded Stans USD $118,000,000. and the High Court of Justice England and Wales in the proceedings initiated by the Kyrgyz Republic to set aside the award on jurisdictional objections, found in Stans favour and ordered the Republic to pay Stans USD $ 222,241.89.!!!
I’m holding firm at this time. I think the last chapter has yet to be written!!! We're yet to learn what Stans' investments in Kutessay II and Kalasay were either disallowed or not decided during the Unicitral Tribunal Stans verses Kyrgyz arbitration proceedings and what will be Stans' response ?
Yeribe