What A Minister Says Can Cost Dearly

In answering whether Costa Rica should compensate Industrias Infinito in the Crucitas mine case, the minister in charge of the issue said, "they shouldn't be paid or it should be minimal. "  

Thursday, February 13, 2014

EDITORIAL

In an article in Prensalibre.cr the Minister of Environment and Energy René Castro answered the question by saying "We believe that Costa Rica should not give any compensation to Industrias Infinito because there was never actually a concession."

After enumerating the reasons that will be used in the defence of the case against the Costa Rican government in an international court, Minister Castro makes an implicit recognition that at least some of the blame falls on Costa Rica, by saying that the compensation payment to Industrias Infinito "should be minimal."

And as outlined in another article in Nación.com - the well headlined "Environment Minister René Castro Tones Down Problem with Mining Company " - the Minister confirms his view that "the amount payable by us should be minimal or nothing".

It would be good if Costa Rica had an advocate who was a little more convinced of his client's innocence, especially considering that, as we said in our editorial on wednesday, in this issue "Everybody wins, nobody loses...except you and me".

Win or lose in the arbitration with Industrias Infinito, the minister and his entire cohort of lawyers will still charge their same salaries, and they will keep traveling backwards and forwards to Washington charging for expenses which always leave a little left over in their bank accounts.

Fortunately Minister René Castro has little time left in his tenure, but the damage to the cause of the Costa Rican State has already been done.

See: "Article in Prensalibre.cr"
See: "Article in Nacion.com"



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.

Everybody Wins, Nobody Loses ... Except You and Me

February 2014

The money that the State of Costa Rica will lose in the dispute over the failed concession of the Crucitas mine will come from taxpayer's pockets.

Editorial

During the 20 year period of the soap opera that is Crucitas gold mine, none of the individuals who are involved in one way or another have suffered any financial loss and many, on the contrary, have seen an increase in their income and their bank accounts.

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.

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