In an award received by the Office of the Attorney General, the tribunal dismissed a case by Cortec Mining (K) Ltd and two other against the Republic of Kenya amounting to Ksh. 200 billion.
‘… the Tribunal declines to grant the Respondent’s claim for costs of Ksh.650 million but reduces the award by 50%. In the result, the Government will be entitled to recover costs in the sum of Ksh. 320 million.,’ read the Arbiter.
In the case filed in June 2015, the mining firm sought compensation after the government cancelled its mining licences for the exploration and development of minerals in Mrima Hills, Kwale County terming it as ‘unlawful’. The firm further claimed that the government’s move also expropriated its investments and breached the UK-Kenya Bilateral Investment Treaty’s obligation to treat them fairly and equitably.
However, according to the Arbitral Tribunal ICSID, the costs of the arbitration are inclusive of the fees and expenses of the Tribunal, ICSID’s administrative fees and direct expenses.
“The Claimants’ claims are dismissed with costs to the Respondent in the sum of US $3,226,429.21 plus US $322,561.14 in ICSID costs,” the tribunal said.
In April 10, 2015, the then Mining Cabinet Secretary Najib Balala cancelled 65 mining licenses saying that some had expired while others had been surrendered by the owners. Balala also said that other licenses belonged to non-performing and non-compliant companies according to the Mining Act provisions and licensing regulations.
The license for the Cortec Mining Kenya Ltd firm was amongst those that were cancelled by the Mining CS who said that the firm had not obtained approval from the National Environmental Management Authority and the Kenya Forest Service before applying for the mining licence.