Originally from Journal of Damages in International Arbitration

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I.  INTRODUCTION

On August 22, 2016, an arbitral tribunal composed of Professor Juan Fernández-Armesto (Chair), Professor Francisco Orrego Vicuña, and Judge Bruno Simma issued an award in ICSID Case No. ARB(AF)/12/5, Rusoro Mining Limited v. The Bolivarian Republic of Venezuela.  The Tribunal awarded Claimant total damages of USD 967,777,002 (plus interest) and legal costs of USD 3,302,500, arising from Venezuela’s unlawful expropriation of Claimant’s mining rights in breach of the Agreement between the Government of Canada and the Government of the Republic of Venezuela for the Promotion and Protection of Investments, dated 1 July  996 (the Canada-Venezuela BIT or BIT).  The Tribunal dismissed Claimant’s claims for creeping expropriation and breaches of the fair and equitable treatment, full protection and security, and anti-discrimination protections in the BIT.

II.  FACTUAL BACKGROUND

Claimant Rusoro is a Canadian company involved in the acquisition, exploration, development, and operation of gold mineral properties.   Between 2006 and 2008, Claimant acquired controlling interests in 24 Venezuelan companies, which held a total of 58 mining concessions, contracts, leasing agreements, and joint venture agreements for the exploration, development, and exploitation of gold and other minerals in Venezuela.   Collectively, these interests formed Claimant’s mining rights.