UF
1 Jun 2000 – Agreement
PAR 1
30 June 1995 – BIT
1 Dec 1995 – Ticadia ratified the BIT
10 Aug 1996 – Kronos ratified the BIT
PAR 2
Kronos is an underdeveloped country according to OECD.
Kronos is not an OECD member.
Kronos and Ticadia are parties to the VCLT and 1992 Water
Convention (T – 2014; K – 2015)
PAR 3
Mar 1997 – KFU discovered lindoro in Northern region
Aug 1997 – Kronos took out loan from IFC to fund research
Kronos confirmed the research.
Lindoro – high value rare earth metal
PAR 4
Nov 1998 – invitation to join public auction
1,071,00m2 – area to exploit lindoro; The Site
Technical expertise & financial return –criteria to join the auction
Net revenue received from activity – return
PAR 5
3 competitors – bidding
20 April 2000 – Claimant won the action; highest financial return
PAR 6
Claimant
– limited liability company
– 1993 - incorporated in Ticadia
– during incorp, it has 5 Ticadian nationals as shareholders
– 1995 – PEF acquired 65% of the shares + voting rights
o PEF – incorporated under Ticadia
– 2012 – Kronians acquired the remaining 35%
PAR 7
Management – in the hands of BOD elected by SHs
Last 5 yrs – BOD, majority are Kronians
CEO – appointed by BOD; Ticadian resident
CEO – often travels & stays in Kronos for long
Kronian SHs – exert considerable influence over decisions
PAR 8
80 years – concession agreement
22% of the monthly gross revenue – C  R (return)
Aug 2008 – start of the actual exploitation
PAR 9
Agreement – C owns a property
Agents of MAFL – inspection every 2 years
PAR 10
No regulatory framework – at the time of Agreement
Except for MAFL’s internal rules – based on Convention on the
Transboundary Effects of Industrial Accidents, though Kronos is
not a party.
Only instrument regulating the exploitation of lindoro –
Agreement
PAR 11
C – only company extracting lindoro
200 employees overall – Kronians citizens
40 of such – responsible for disposing the waste
PAR 12
2010 – C transferred & concentrated almost all of its mining
activities and resources in Kronos
Shut down mining operations in Ticadia.
C remains incorporated under Ticadian laws
All business formalities + meetings – Ticadia
Decisions favor interests in Kronos
Most of the decisions are implemented in Kronos
PAR 13
R’s gov’t strongly supported C’s decision to fully transfer its
mining activities in Kronos
Presidential statements (websites + speeches)
Jan 2015 – Nationalist Party took office
PAR 14
Oct 2014 – Curat Bazings – NP; center-left; strong envi; won
NP also won in the HR’s elections
5-yr term
PAR 15 between water contamination by graspel and an increase in CVD,
Mar 2015 – Mr. Bazings sent a draft bill to the House but not widely accepted.
Liberal Party ruled for 60 years
Bill was criticized for overly restrictive. PAR 23
7 Sept 2016 – PD 2424
PAR 16 140 EEs were dismissed
12 Jun 2015 – KEA (bill + obli & def – Water Convention)
KEA – protect waters , fines, penalties, etc. PAR 24
C – media conference – unable to honor obli because of losses but
PAR 17 would not file bankruptcy, since it is confident in reaching for
KEA – passed quicker than the normal 15 months (2 mos) negotiated solution with R
Speaker of the House – NP; waived public hearing (Art. 59)
LP said Speaker’s decision was a clear signal of Gov’t scheme to PAR 25
replace Claimant 3 Sept 2016 – C filed claims before Kronos Federal Court to
NP said the waiver was within the Consti authority of the speaker suspend the Decree until negotiations took place
Despite the effects of PD 2424, C’s CEO stressed C’s ties with the
PAR 18 Kronian people.
Same day as KEA, MEM was created
MEM – in charge of formulating & enforcing envi policies PAR 26
One MEM’s mission – strict supervision of C’s activities 22 Feb 2017 – Gov’t spokesperson announced that the Decree
Supervision of MAFL’s inspections would not be revoked
C withdrew its appeal to Kronos’ Circuit Court (same proceedings
PAR 19 as above)
Sept 2015 – MEM’s first inspection
C was fully compliant under the Agreement PAR 27
27 Apr 2017 – C notified R’s Ministry of FA of its dispute and
PAR 20 intention to purse legal remedies under the BIT if agreement was
Oct 2015 – MEM released data not reached through nego
Data – concentration of toxic waste in Rhea River had sharply R declined to negotiate
increased since 2010 Cessation of revenues
Data – based on inspections carried on since 2011 by MAFL Complete shut down – facilities
Remaining 30 EEs were dismissed
PAR 21
KFU submitted funding request to further investigate PAR 28
Granted in 2015 Aug 2017 – newspaper – restart extraction of lindoro by 2019,
USD 250K with enterprise from Republic of Ibi, as a result of joint venture
Rumor – willing to revoke the decree
PAR 22
15 May 2016 – KFU released the Study PAR 29
Study 10 Nov 2017 – C filed request for arbit before SCC.
- contamination is the direct consequence of exploitation
- does not establish causal link – rising incidence of diseases
- acknowledges presence of graspel
10 diff studies conducted by top-tier univ + researchers across
the globe over the last 5 yearsdemonstrated a connection