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Panama agrees to pay $26 million to settle dispute with US mining firm
Panama has agreed to pay $26 million to settle a dispute with Dominion Mineral Corp., after dropping an arbitration award in 2020 associated to the U.S. mining firm’s copper and gold exploration licenses, La Estrella de Panamá reported .
The declare arose after Panama refused to increase a mining exploration concession for the Cerro Chorcha venture, which was held by Cuprum, an area subsidiary of Dominion, below a contract signed in 2006. This contract had an preliminary length of 4 years with the opportunity of renewal for 2 extra durations of two years every.
Nevertheless, in 2010, the Ministry of Commerce and Trade rejected Cuprum’s request for an extension after declaring Cerro Chorcha a «mineral reserve», prohibiting any sort of exploration or extraction within the space.
In 2016, the case was taken to the Worldwide Centre for Settlement of Funding Disputes (ICSID), which subsequently dominated that Panama was liable for the «unlawful expropriation» of Dominion’s mining investments within the nation.
As a part of the 2020 judgment, Panama was ordered to pay $14.1 million, together with pre- and post-award compounded annual curiosity, extra direct damages of $1.8 million, and post-award compounded annual curiosity at a price of USD LIBOR plus 4% till full fee was made, leading to a complete quantity of $26,679,390.
In response to Margie-Lys Jaime Ramírez, head of the Funding Arbitration Workplace of the Ministry of Financial system and Finance (MEF), a fee of 26 million {dollars} was agreed after a brand new spherical.
Translated by Flor Elena
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