Panthera Resources Pursues Arbitration for Bhukia Project Dispute
Panthera Resources and Arbitration Proceedings
Gold exploration and development company Panthera Resources Plc (AIM: PAT) has taken significant steps in its arbitral proceedings against the Republic of India. This action pertains to the Bhukia project, where the company's Australian subsidiary, Indo Gold Pty Ltd (IGPL), is asserting claims for damages. The basis of this dispute lies in India's purported breach of a bilateral investment treaty that dates back to 1999.
The Denial of Licensing
The crux of the disagreement centers on the refusal to grant a Prospecting Licence for the Bhukia project located in Rajasthan. IGPL asserts this denial breaches the investment protection agreement between Australia and India. As part of the process, an initial tribunal hearing was convened in December, following IGPL's issuance of a Notice of Arbitration to India several months earlier.
Background on the Bhukia Project
The Bhukia project, which has been under exploration since 2005, is believed to contain substantial gold resources. However, a significant alteration to India's mining laws in 2021, coupled with the auctioning of part of the project area, has jeopardized IGPL's investment. These developments have ultimately led to the current legal proceedings.
Arbitration Details and Proceedings
The terms regarding arbitration have been mutually agreed upon by the involved parties and the tribunal. Notably, the Permanent Court of Arbitration will oversee the proceedings, with the legal jurisdiction based in London. While the mechanics of the arbitration will remain confidential, basic information about the case is expected to be available on the PCA's website.
Financial Support for Legal Action
To bolster its claim, IGPL has secured litigation funding from LCM Funding SG Pty Ltd, a branch of Litigation Capital Management Limited. This funding setup is notable for being non-recourse, meaning that LCM Funding will not demand repayment unless a favorable outcome or recovery is achieved from the arbitration.
The Uncertain Outcome of the Claims
The resolution of IGPL's treaty claims against India remains uncertain. Panthera Resources has pledged to keep stakeholders informed, providing updates as new developments arise. As the situation unfolds, the company remains poised to navigate the complexities of international arbitration, emphasizing the importance of protecting investments made abroad.
Frequently Asked Questions
What triggered Panthera Resources to initiate arbitration?
The initiation of arbitration was triggered by India's denial of a Prospecting Licence for the Bhukia project, which IGPL claims violates a bilateral investment treaty.
What is the role of the Permanent Court of Arbitration?
The Permanent Court of Arbitration oversees the arbitration proceedings, ensuring they are conducted in accordance with international standards.
How does litigation funding support IGPL's efforts?
Litigation funding provides financial resources for IGPL to pursue its claims without the immediate need for repayment unless a positive result is achieved.
What impact did the 2021 mining law amendments have?
The 2021 amendments to mining laws in India have jeopardized IGPL's investment, by allowing the auction of parts of the Bhukia project area.
What updates can stakeholders expect from Panthera Resources?
Panthera Resources has committed to providing regular updates on the arbitration process and any significant developments regarding its claims against India.
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