ICSID rejects correction requests in Venezuela-Gold Reserve arbitration

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Wednesday, December 17, 2014

The World Bank's International Centre for the Settlement of Investment Disputes (ICSID) denied Gold Reserve's and Venezuelan government requests to correct the award in an arbitration case, the company said in a statement.

In September, the ICSID ruled in favor of Gold Reserve, awarding the Spokane-based company US$740mn - including interest and costs - in its arbitration case against Venezuela's government.

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ICSID ruled that Venezuela had breached the Canada-Venezuela bilateral investment treaty when it rescinded Gold Reserve's property rights at the Brisas gold deposit in Bolívar state

The tribunal also rejected Venezuela's request to correct six "clerical, arithmetical or similar errors," which the government said would reduce the amount to US$361mn, and a Gold Reserve request to correct what it believed may have been an error that would have increased the award by up to US$53mn.

With interest, Gold Reserve "estimates that Venezuela now owes the company approximately US$$744mn, which is increasing at a rate in excess of US$1.5mn per month.

The completion of the proceeding marks the end of the tribunal's jurisdiction in the case, Gold Reserve said.