Arbitration Tribunal dismisses claims of Oxus Gold against Uzbekistan

According to Oxus Gold, International Arbitration Tribunal in Paris has rendered its final award on case of Oxus Gold against the Government of Uzbekistan on 21 December 2015.

Oxus Gold’s claims with regard to the company’s investments in the Khandiza deposit have been dismissed entirely.

The claims with regard to the Oxus Gold’s investments in Amantaytau Goldfields have been dismissed, save for a finding of a breach of ‘fair and equitable treatment” (FET) standard under the UK-Uzbekistan Bilateral Investment Treaty as regards Uzbekistan’s modifications in 2006 and 2009 of the taxation regime applicable to AGF.

The Tribunal awarded US$10,299,572 to Oxus Gold in damages with interest of LIBOR + 2% to be compounded annually as of the corresponding years 2004 to 2010.

Oxus Gold was one of founders of Amantaytau Goldfields (50% stake) along with State Committee of Geology and Mineral Resources of Uzbekistan (40% stake in the JV) and Navoi Mining and Metallurgy Combine (10%). The venture owned license to Amantaytau and four more gold fields.

In February 2013, Economic Court of Navoi region announced the venture as bankrupt, satisfying demand of creditors. The liquidation process of the venture started afterwards.

British company also received an exclusive right to develop polymetallic field Khandiza in 2002. But in 2006, the Uzbek President handed over right to develop the field to Almalyk Mining and Metallurgy Combine.