An international tribunal has declined to order Colombia to pay $700 million in damages to a Canadian precious metals company, despite finding three years ago that the country breached an underlying treaty. The tribunal’s Monday decision included harsh criticism of third-party funding in investor-state cases by arbitrator Philippe Sands.
Colombia Dodges $700M Mining Claim : Tribunal’s Findings on Liability
In a 2021 liability award, the tribunal concluded that Colombia knew about the need to protect high-altitude wetlands, known as páramos, when it granted a concession to Eco Oro Minerals Corp. in 2007. The arbitrators criticized Colombia for delaying the exact mapping of the páramos, emphasizing that no environmental licenses could be issued for mining projects near the Santurbán Páramo until the new boundaries were established.
The Final Award
The tribunal’s final award, confidential but reviewed by Law360, concluded by a 2-1 margin that Eco Oro failed to prove it would have secured the necessary environmental license for its gold and silver mining project without Colombia’s actions. The tribunal noted that Colombia’s delimitation of the páramos was a lawful exercise of police powers and did not cause the total loss in value of Eco Oro’s project.
