Silver Bull Resources, Inc. v United Mexican States - ICSID Case No. ARB/23/24 - NAFTA - Request for Arbitration - 28 June 2023
Country
Year
2023
Summary
Source: icsid.worldbank.org
TABLE OF CONTENTS
1. INTRODUCTION
2. THE PARTIES
(A) THE CLAIMANT
(B) THE RESPONDENT
3. FACTUAL BACKGROUND TO THE DISPUTE
(A) SVB'S INVESTMENT IN AND DEVELOPMENT OF THE PROJECT UNTIL THE COMMENCEMENT OF THE ILLEGAL ACTIONS
(B) MINERA METALÍN PREVAILED IN FRIVOLOUS LOCAL PROCEEDINGS BROUGHT BY MINEROS NORTEÑOS BEFORE VARIOUS MEXICAN COURTS
(C) MINEROS NORTEÑOS FORCIBLY EJECTED MINERA METALÍN AND TOOK OVER THE PROJECT
(D) MEXICO FAILED TO END THE CONTINUING BLOCKADE
(E) MEXICO'S CONDUCT CAUSED THE TERMINATION OF SVB'S OPTION AGREEMENT WITH SOUTH32 AND ULTIMATELY THE LOSS OF THE INVESTMENT
(F) SVB HAS FACED ARBITRARY TREATMENT AT THE HANDS OF THE MEXICAN JUDICIARY
4. MEXICO BREACHED ITS OBLIGATIONS UNDER THE NAFTA RESULTING IN THE LOSS OF THE CLAIMANT'S INVESTMENT
(A) MEXICO EXPROPRIATED SVB'S INVESTMENT
(B) MEXICO FAILED TO ACCORD SVB'S INVESTMENTS FAIR AND EQUITABLE TREATMENT AND FULL PROTECTION AND SECURITY
(C) MEXICO'S CONDUCT VIOLATED THE NATIONAL TREATMENT STANDARD
(D) THE CLAIMANT SUFFERED SIGNIFICANT LOSSES AS A RESULT OF MEXICO'S CONDUCT
5. THE CLAIMANT MEETS THE JURISDICTIONAL REQUIREMENTS UNDER THE USMCA, THE NAFTA, AND THE ICSID CONVENTION
(A) THE CLAIM RELATES TO A LEGACY INVESTMENT UNDER ANNEX 14-C OF THE USMCA
(B) THE JURISDICTIONAL REQUIREMENTS UNDER THE NAFTA ARE MET
(C) THE JURISDICTIONAL REQUIREMENTS UNDER THE ICSID CONVENTION ARE MET
6. THE CLAIMANT'S PROCEDURAL PROPOSALS
7. REQUEST FOR RELIEF
1. INTRODUCTION
1.1 Silver Bull Resources, Inc. ("SVB" or the "Claimant") submits this request for arbitration (the "Request" or the "RFA") against the United Mexican States ("Mexico" or the "Respondent") pursuant to Article 36 of the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States (the "ICSID Convention"),1 Rules 1 and 2 of the ICSID Institution Rules,2 Annex 14-C of the Agreement between the United States of America (the "United States" or the "US"), Mexico, and Canada (the "USMCA"),3 and Articles 1116.1, 1117.1, and 1120.1 of the North American Free Trade Agreement (the "NAFTA").4
1.2 This dispute arises out of Mexico's breaches of the NAFTA in relation to SVB's investments in Mexico. SVB made those investments in certain concession areas in the Sierra Mojada region in Mexico, which it developed for the purposes of mining silver, zinc, and lead (the "Project").
As a result of Mexico's breaches, the Claimant lost its entire investment.
1.3 The Claimant provides a description of the Claimant and the Respondent (the "Parties") in Section 2 and the factual background to its claims in Section 3. Section 4 summarises Mexico's breaches of the substantive standards under the NAFTA. The Claimant has complied with the relevant jurisdictional and other requirements under the USMCA, the NAFTA, and the ICSID Convention as set out in Section 5. In Section 6, the Claimant presents its procedural proposals as to the next steps in this proceeding, in accordance with the ICSID Arbitration Rules.5 The relief sought by the Claimant is set out in Section 7.
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7. REQUEST FOR RELIEF
7.1 The Claimant respectfully requests the Tribunal to:
(a) DECLARE that Mexico has breached its obligation not to expropriate the Claimant's investment under Article 1110 of the NAFTA;
(b) DECLARE that Mexico has breached its obligations to accord full protection and security and fair and equitable treatment to the Claimant's investment under Article 1105 of the NAFTA;
(c) DECLARE that Mexico has breached its obligation to accord national treatment to the Claimant and its investment under Article 1102 of the NAFTA;
(d) ORDER Mexico to pay compensation for the loss and damage sustained by the Claimant and Minera Metalín as a result of Mexico's breaches of its obligations under the NAFTA and international law, in an amount of not less than USD 82,500,000, or such other amount quantified during the course of this proceeding;
(e) ORDER Mexico to pay pre-award and post-award interest compounded at a rate that ensures full reparation;
(f) ORDER Mexico to bear the costs of the arbitration and compensate the Claimant for all its costs and expenses incurred in relation to this proceeding, including the fees and expenses of their counsel, in-house counsel, witnesses and experts and reasonable funding costs (as applicable), the fees and expenses of the Tribunal, and ICSID's other costs and fees; and
(g) AWARD such other and further relief as the Tribunal deems appropriate.
7.2 For the reasons set out above, the Claimant respectfully requests the Secretary-General to register this Request in accordance with the ICSID Convention and the ICSID Institution Rules.
7.3 The Claimant reserves its rights further to amend, develop, and quantify its claims and requests for relief, assert additional claims and requests for relief, and to present further argument and evidence in the course of the arbitration, in accordance with the ICSID Convention and the ICSID Arbitration Rules.
Respectfully submitted,
28 June 2023
For and behalf of the Claimant
Silver Bull Resources, Inc.
Counsel for the Claimant
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SVB (formerly known as Metalline Mining Company)
Footnotes omitted