Canadian company awarded $1 billion in action against Venezuela for taking a gold mine
The Globe and Mail:
An international arbitration tribunal has ordered Venezuela to pay a Vancouver-based mining company more than $1.2-billion for expropriating its gold mines.Venezuela is something of a deadbeat now. Its theft of properties owned by others and failure to compensate them has led to several such awards. Venezuela is a socialist country that has run out of other people's money.
Venezuela took over Rusoro Mining’s investments in the country as part of a nationalization of the gold industry in 2011.
Rusoro Mining Ltd. said Tuesday the money is due immediately and it expects that Venezuela will comply with its international obligations.
Company director Gordon Keep said Rusoro Mining was pleased with the decision and looked forward to talking with the Venezuelan government.
“I’m quite certain there will be a conversation,” he said. “Whether or not it will be a short or a long one, I have no idea.”
Shares in the company more than doubled in trading Tuesday and ended the day up 19 cents at 34.5 cents on the TSX Venture Exchange.
However, Rusoro Mining will face challenges in getting paid as Venezuela withdrew from the World Bank-affiliated arbitration body in 2012. It also isn’t the only Canadian mining company looking to collect a large award by the arbitration panel from Venezuela.
Crystallex International Corp., which has been operating under the federal Companies’ Creditors Arrangement Act since December 2011, was awarded $1.2-billion in damages plus interest earlier this year in connection with unfair treatment and expropriation of its Las Cristinas mining project in Venezuela.