Summary

---

Case report (free download)

Case Report by Marina Kofman, editor Dr. Ileana M. Smeureanu

Summary

The dispute arose out of certain measures taken by Venezuela which, according to the Claimant, wrongfully affected the Claimant's investment in the areas called "Las Cristinas". Las Cristinas is reported to contain one of the largest undeveloped gold deposits in the world and is divided into four mining concessions, Cristina 4, 5, 6, and 7, which are located within the municipality of Sifontes in the State of Bolívar in the Guayana region in southeast Venezuela (¶ 6). Crystallex contended in the arbitration that through its actions and omissions vis-à-vis Crystallex, Venezuela breached several of its obligations under the Agreement between the government of Canada and the Government of the Republic of Venezuela for the Protection and Promotion of Investments ("BIT") including faiure to afford Crystallex's investments fair and equitable treatment under Article II(2) and unlawful expropriation of its investments in breach of Article VII(1). It particularly pointed to Venezuela's April 2008 denial of a permit to Crystallex to exploit the gold deposits at Las Cristinas, and of the rescission by the Corporación Venezolana de Guayana ("CVG"), a state-run corporation tasked with stimulating economic activity in the Guayana region, of the Mine Operation Contract in February 2011.

Main Issues

jurisdiction - one or two disputes - cooling -off period - conceptual difference between contract and treaty claims - fair and equitable treatment - reasonable expectations - arbitrariness (lack of) transparency and consistency - full protection and security - direct and indirect expropriation - valuation - fair market value - full reparation

Crystallex International Corporation v Bolivarian Republic of Venezuela (ICSID Case No. ARB(AF)/11/2) - Award

Case report provided by International Arbitration Case Law (IACL)