RE: Newsletter30 Nov 2025 13:03
@Keepitpoistive,
I haven't reached that desperate stage yet, I'm still hopeful Sonora will add value whether through a deal with the Mexican government or settlement, this looks similar to what happened with Sonora:
💰 Investment
• Crystallex had invested ~USD 300 million in exploration, studies, and preparatory work.
⚖️ Compensation
• ICSID tribunal awarded USD 1.386 billion + interest.
• Calculated using fair market value via discounted cash flow (DCF), adjusted for country risk and feasibility.
📑 Trade Agreement
• Case brought under the Canada–Venezuela Bilateral Investment Treaty (BIT).
• Tribunal applied the principle of “full reparation” (from Chorzów Factory), ensuring Crystallex was compensated for the lost concession.
👉 Summary: Crystallex’s mine was fully explored but pre-production. The company invested ~$300M, and ICSID awarded $1.386B under the Canada–Venezuela BIT, using DCF valuation to reflect the fair market value of the lost project
The Las Cristinas concession held by Crystallex was cancelled through regulatory refusal rather than outright seizure:
• Environmental Permit Denied:
In 2008, Venezuela’s Ministry of Environment refused to grant Crystallex the required environmental permit to begin mine construction. This effectively blocked the project from moving forward.
• Termination of Contract:
Following the permit denial, Venezuela formally revoked Crystallex’s mining contract with the state-owned company CVG (Corporación Venezolana de Guayana). The concession was then transferred to Venezuela’s national mining company.
• ICSID Tribunal’s View:
The tribunal found that the refusal was arbitrary and politically motivated, not based on legitimate environmental concerns. This amounted to expropriation under the Canada–Venezuela Bilateral Investment Treaty (BIT).
Just hopeful?
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