South American Silver Corp. (TSX:SAC) filed an international arbitration against the Bolivian Government.
As quoted in the press release:
The arbitration has been commenced as a result of acts and omissions of the Government including the issuance of Supreme Decree No.1308 on August 1, 2012 (the “Decree”). The Decree revoked mining concessions covering the Malku Khota Mining Project (the “Project”) held by Compañia Minera Malku Khota S.A. (CMMK), a wholly-owned subsidiary of South American Silver Limited. These measures resulted in the complete expropriation of the Project without compensation. The arbitration claim is for Bolivia’s breach of the Treaty and international law. Bolivia has breached the Treaty’s requirement to provide full protection and security to foreign investors and their investments, as well as the Treaty’s protections against, among other things, expropriation without just and effective compensation, unfair and inequitable treatment, and less favorable treatment than afforded to Bolivian nationals or nationals of third states.
South American Silver Corp. President and CEO, Phillip Brodie-Hall said:
It is regrettable that we are forced to resort to international arbitration to resolve this matter. Bolivia chose to expropriate our mining concessions; it must now meet its legal obligations and compensate us for this significant loss. International arbitration gives us the means to pursue our case and we are very confident that it will deliver fair value compensation. We have a first-class team working on the case and, while we are open to dialogue with the Government, we are prepared to go the full distance in arbitration if that’s what it will take to get fair value compensation. Our loyal shareholders deserve nothing less.