GreenX Wins Arbitration Against Poland, Granted AU$490 Million

GreenX Metals (ASX:GRX,LSE:GRX) has won against the Republic of Poland in international arbitration claims concerning the Jan Karski coal project.

In a Tuesday (October 8) release, the company announced that it has been awarded around 252 million pounds, equivalent to AU$490 million, by the tribunal under the Australia-Poland Bilateral Investment Treaty (BIT).

The announcement also resulted in a significant increase in GreenX’s share price, which jumped above AU$0.90.

“The tribunal has unanimously held that the Republic of Poland had breached its obligations under the treaties in relation to the Jan Karski project, entitling GreenX to compensation,” the press release reads.

The Polish government reportedly blocked the development of both the Jan Karski and Dębiénsko coal mines, depriving GreenX of the entire value of its investments in the country. The company noted that while its Jan Karski claims were successful, the tribunal did not uphold the claim under the treaties in respect of the Dębieńsko project.

The claim was brought under the United Nations Commission on International Trade Law Rules (UNCITRAL) and was filed in 2020, when GreenX Metals was still known as Prairie Mining.

Arbitration hearings regarding the claim lasted for two weeks and concluded in November 2022. In the proceedings, GreenX claimed damages of up to 737 million pounds or AU$1.3 billion, including the assessed value of its lost profits.

The awards are final and binding on the parties, with no requests for reconsideration allowed by the tribunal.

Each party was ordered to cover its own legal fees, expenses and arbitration costs relating to the claim. All of GreenX’s were funded on a non-recourse basis from specialist arbitration funder Litigation Capital Management (LCM), which was secured in July 2020.

GreenX said that it will provide further details once it has completely reviewed the full text of both awards with its legal team.

The mining company has multiple earn-in agreements for copper and gold projects in Europe, and recently entered into one for the Tannenberg copper project in Germany.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.