The Chilean state company presented the request for arbitration, last April it had done so before the International Chamber of Commerce.
The National Copper Corporation of Chile (Codelco) notified the General Secretariat of the International Center for Settlement of Investment Disputes (ICSID) the request for arbitration, under the agreement between Ecuador and Chile for the Promotion and Reciprocal Protection of Investments.
This was reported in a statement on December 24 by the Chilean state-owned company, the main producer of copper in the world and a leader in mineral reserves at a planetary level, which had already requested arbitration before the Chamber of Commerce last April. International (ICC).
Chilean company Codelco requests arbitration with Ecuador before the International Chamber of Commerce for breaches in the Llurimagua project
This new request for arbitration comes after the agreement between Ecuador and ICSID will enter into force on September 3 after its ratification last August, which marked the return of the country to this forum from which it came out in 2010.
Meanwhile, Codelco’s request to ICSID was made more than a year after the Chilean copper company formally requested to initiate a process of friendly and confidential conversations regarding its investments in the Llurimagua mining project, located 80 kilometers from Quito. .
The situation dates back to 2015 when the National Mining Company of Ecuador (Enami EP) and Codelco signed the terms of the shareholders’ agreement for Llurimagua and in 2016 Codelco notified Enami EP of the fulfillment of all the agreed milestones and, after extensive negotiations, in 2019 both companies agreed on the definitive terms for the association.
However, that same year, the Comptroller General of the State of Ecuador found several breaches of the contract by both companies. One of them was precisely not having created a mixed economy company. In 2020, both companies agreed to create an anonymous company, but Ecuador recognized that it did not have the necessary money
Ecuador ratifies the ICSID agreement
The Chilean company recalled that at the end of November 2020 it requested Ecuador, represented by the Ecuadorian Attorney General’s Office (PGE), to promote a solution to comply with the obligations in relation to investments in Llurimagua.
According to Codelco, the deadline for such friendly talks expired at six months, last May, after which the Chilean state company assured that it made “various efforts in good faith”, requiring and holding meetings.
The Chilean company assured that it has fulfilled all its commitments and has made and will continue to make relevant investments for the benefit of the project and Ecuador.
“Codelco ratifies its commitment to continue supporting the development of the mining project in favor of Ecuador and Chile and hopes that the Ecuadorian State will promote a solution for the benefit of both parties and the Llurimagua project,” concluded the Chilean firm. (I)
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