Alhambra Resources Ltd. and Alhambra Coӧperatief U.A. v. Republic of Kazakhstan
ICSID · Investment (ICSID and treaty) · Kazakhstan · 31 Mar 2023
Why it matters
This case is significant for its detailed analysis of the fair and equitable treatment standard under the Energy Charter Treaty, particularly in the context of mining investments. The tribunal's reasoning on the scope of legitimate expectations and the state's regulatory power provides guidance for future investment treaty disputes involving natural resources.
Summary
The dispute arose from Kazakhstan's revocation of mining licenses held by Alhambra Resources Ltd. and its Dutch subsidiary. The claimants alleged that Kazakhstan violated the Energy Charter Treaty by expropriating their investment without compensation and failing to provide fair and equitable treatment. The tribunal, after examining the facts, found that Kazakhstan's actions were a legitimate exercise of its regulatory authority and did not breach the treaty. The claims were dismissed, and the claimants were ordered to pay costs. The award clarifies the boundaries of investor protection under the ECT, emphasizing that states retain the right to regulate in the public interest.
The detail
Parties: Alhambra Resources Ltd. and Alhambra Coӧperatief U.A. v. Republic of Kazakhstan
Case number: ICSID Case No. ARB/16/12
Outcome: The Tribunal dismissed the claims in their entirety and ordered the Claimants to pay the Respondent's costs.
Applicable law: Energy Charter Treaty; ICSID Convention; Arbitration Rules; Kazakhstan law
Issues in play: The case involved the interpretation of the Energy Charter Treaty's fair and equitable treatment standard and the expropriation provision, as well as the application of Kazakhstan's mining and investment laws.
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