Originally from the Journal of Damages in International Arbitration

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The Parties
Bear Creek Mining Corp. (the “Claimant”), Republic of Peru (the “Respondent”)

Sector
Silver mining

Applicable Treaty
Free Trade Agreement between Canada and the Republic of Peru

Members of the Tribunal
Karl-Heinz Böckstiegel (President), Michael Pryles (Claimant’s appointee) and Philippe Sands (Respondent’s appointee)

I.  BACKGROUND

This case concerned Peru’s unlawful expropriation of the investment of a Canadian mining company (“Bear Creek” or the “Claimant”) in the development of a silver mining project at Santa Ana, which is located close to the border with Bolivia (the “Santa Ana Project”).

In November 2007, Bear Creek obtained the authorization to acquire, own and operate a mining concession at Santa Ana through Supreme Decree 083-2007 (“Supreme Decree 083”).