The Conversation (0)
South American Silver (TSX:SAC) provided an update on the dispute between the Company’s wholly-owned subsidiary South American Silver Limited and the Plurinational State of Bolivia, where the Government of Bolivia revoked all mining concessions of Compañia Minera Malku Khota S.A. (CMMK), a wholly owned subsidiary of South American Silver, which is a protected investor under the Bilateral Investment Treaty between the United Kingdom and Bolivia. The acts and omissions of the Bolivian Government are in violation of the UK-Bolivia Treaty and of international law.
As quoted in the press release:
On October 23, 2012 South American Silver Limited delivered a formal letter to the Bolivian Government notifying it of the investment dispute under the UK-Bolivia Treaty. Notification of the investment dispute triggered a six-month cooling-off period during which the disputing parties may negotiate a settlement. The cooling-off period expires on April 23, 2013.
On December 12, 2012, South American Silver Limited delivered a formal letter to the Bolivian Government reiterating its willingness to meet with Bolivian Government representatives in order to settle the dispute.
South American Silver President and CEO Phillip Brodie-Hall said:
We are hopeful that the Government of Bolivia will agree to meet in order to negotiate an early settlement to the dispute. However, if a settlement cannot be reached by April 23, 2013, we will be filing a Notice of Arbitration under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL) claiming full compensation based on fair market value of the Malku Khota project. Given the size of the project, the claim will be substantial. Indeed, as recently as December 11, 2012, Edgar Alan Pinto, the President of the Bolivian state-owned mining corporation (COMIBOL), was quoted in the Bolivian Press describing the project as one of the most attractive on the South American continent because of its high concentration of silver, indium, gallium and gold.
Click here to read the South American Silver (TSX:SAC) press release
