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.
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.
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.
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.
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.
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.
Representatives of the company, which has invested about $ 127 million in the project, reacted surprised, saying they did not understand the verdict when "the highest court (Constitutional Court) in the country endorsed the Crucitas project as environmentally, legally, constitutionally and socially viable.”
A Contentious-Administrative Tribunal issued a ruling temporarily preventing the mine from operating.
The ruling is in response to a complaint filed by the Flora and Fauna Preservation Association, who seeks to permanently shut down the gold mine.
Last week, the Constitutional Court had authorized the mine to being operating, as it didn’t find reasons to justify negative effects on the environment.
Mexico opened an additional import quota of 250.000 tons, as it faces low domestic sugar production.
Central American sugar growers seek to benefit from this situation. They expect exports to reach 2.8 million tons, explained José Orive, director of AICA, an association of Central American sugar growers.
“In 2009, Guatemala exported 277.000 tons of sugar to Mexico, a 900% increase when compared the 30.000 of a regular year.
Infinito Gold, owner of the strip mining project "Crucitas" in Costa Rica, presented investors details of the controversial $66 million mine.
The company reviewed the mine's total gold output at 940.000 ounces, raising the Net Present Value of the project to $127 million.
For projecting cash flows, Infinito used a price of $750 per gold ounce, and estimates a mining cost of $342.50 per ounce, which is "very competitive", according to the company.
Attorneys, Alvaro Sagot and Mario Peña, presented an action against the unconstitutionality of the Government degree declaring the Crucitas mining project to be in the public interest.
The decree, 34801-Minaet, was published in July 2008 and was signed by President Oscar Arias and the minister of the Environment, Roberto Dobles.
In the lawyers' opinion, the decree overrides socio-environmental aspects, and hence is serious violation of the constitution.
The Supreme Court of Costa Rica has ordered the suspension of works at the Crucitas gold mine due to enviromental claims.
Infinito Gold Ltd, the company responable for the developmen of the mine, reported that the court had ordered them to stop works to clear the property while they review the case presented by a group of environmentalists.
The Canadian company had already started to clear the land last week, but had stopped the works until the court makes a decision. The court has not given a date for its final decision.