ICSID dismisses Montauk's arbitration against Colombia
The Canadian company demanded around US$175 million in compensation
The World Bank's International Centre for Settlement of Investment Disputes (ICSID) ruled in favour of Colombia in an arbitration case initiated by Canadian miner Montauk Metals.
Montauk filed the case in 2018 after the country banned mining activities in fragile ecosystems around its Reina de Oro project. The miner claimed the ban violated the free trade agreement between Colombia and Canada and demanded compensation of 700,000 million pesos (around US$175 million).
The international tribunal has dismissed the claims, ruling that Colombia took the measures in good faith and constituted the right to protect its ecosystem, the country's national defence agency stated.
"With this decision … the country was saved from paying over 700,000 million pesos," the government agency said.
In March, the same court rejected an arbitration case against Colombia from Red Eagle Mining. Red Eagle also filed the case in relation to the prohibition of mining in the country's moor ecosystem, for which the court ruled that the government can legitimately regulate the ecosystems in the public interest.
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