Miner Proposes Costa Rica Agreement or $1.1 Billion Litigation

Infinito Gold has given an ultimatum to the Costa Rican government, to either agree to resume its gold mining project, or face an international law suit for $1.09 billion.

Friday, April 5, 2013

The Canadian mining company had initially obtained permits for the operation of a gold mine in Costa Rican territory, and had already started the project when a court ruling overturned the award, pointing to flaws in the process of granting permits, and environmental damage.

"Our parent company has submitted a letter to the Foreign Trade Minister, Anabel González, notifying her of what we consider a number of breaches of the bilateral investment treaty between Costa Rica and Canada, bearing in mind that the company was invited to invest here and expected that the investment would be safeguarded, but that did not happen," said Soto Yokebec, company spokeswoman.

With the delivery of this letter, the country will have six months in which to reach an agreement with the mining company, which would be only the resumption of operations in the area. "Otherwise, we will take it to the ultimate consequences, we have already given notice to the Government to see when we can start with meetings and reach that agreement," said Soto.

Prensalibre.com reports that "another possible agreement is to be compensated to the tune of $1.092 billion, the investment amount and what the company has lost because it stopped the works."

"We know that the court had the last word on the matter. It is a settled matter and consequently the Administration has no power to act against the judgment", said the president of the Republic, Laura Chinchilla.

¿Busca soluciones de inteligencia comercial para su empresa?

More on this topic

Litigation Between Costa Rica and Canadian Mining Company Suspended

July 2015

The Canadian firm Infinito Gold has ceased operations and requested the temporary suspension of arbitration against Costa Rica over the failed concession of the Crucitas gold mine.

The cessation of business operations due to lack of financial resources, announced in mid-July, when all its directors and managers resigned, could be the main reason for the decision to request the temporary suspension of the proceedings against Costa Rica over the Crucitas gold mine, for which $94 million was demanded for violations of the agreement for the promotion and protection of investments between Costa Rica and Canada.

International Litigation Over Mine in Costa Rica

February 2014

Infinito Gold is suing for $94 million lost due to violations of the agreement for the promotion and protection of investments between Costa Rica and Canada.

Industrias Infinito confirmed that its parent company, Infinito Gold, has filed a law suit against Costa Rica at the International Centre for Settlement of Investment Disputes (ICSID) seeking compensation as a result of their investments in the canceled mining project of Crucitas.

Mining Company Sues Costa Rica for $1.1 billion

June 2013

After the final decision by the Constitutional Court dismissing their claims, Industrias Infinito has announced it will continue litigation in international tribunals.

"Industrias Infinito turned to international arbitration with the International Centre for Settlement of Investment Disputes and Investment Disputes (ICSID) in April, the company is asking the State to pay $1.092 billion in compensation for halting the mining concession", reported Nacion.com.

Crucitas Mine, Legal Uncertainty and Foreign Investment

November 2010

A 15-year, $127 million investment was suddenly halted by a court canceling a mining concession to Industrias Infinito in Costa Rica.

On Wednesday a court ruled that there were irregularities in the issuance of permits awarded to the Canadian mining company for exploiting a gold mine, and decided to annul the concession.