Venezuela v. Anglo American

Foley Hoag LLP secured a complete victory for Venezuela against mining conglomerate Anglo American, defeating the multinational company’s claim of more than $400 million in an investment arbitration under the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) Additional Facility Rules.

Anglo American claimed that Venezuela had unlawfully expropriated its ferronickel processing facility and related assets in breach of the UK-Venezuela bilateral investment treaty. A majority of the three-person arbitral tribunal rejected the company’s claims.

The central issue in the case was whether the processing facility reverted to Venezuela upon expiration of Anglo American’s concession. A majority of the tribunal agreed with Venezuela that it did, under the terms of the concession agreement that bound both parties. By complying with its obligations under the concession agreement, Venezuela also complied with the investment treaty. Accordingly, Anglo American’s claims that Venezuela breached the treaty’s obligations with respect to expropriation, fair and equitable treatment, full protection and security, and national treatment were rejected.

Foley Hoag advised Venezuela Republic with a team including Mélida Hodgson, Kenneth Figueroa (Picture) and Tafadzwa Pasipanodya, counsel Diego Cadena and Analía González, and associates Patricia Cruz Trabanino and Anna Toubiana.

Involved fees earner: Diego Cadena – Foley Hoag; Kenneth Juan Figueroa – Foley Hoag; Analía González – Foley Hoag; Mélida Hodgson – Foley Hoag; Tafadzwa Pasipanodya – Foley Hoag;

Law Firms: Foley Hoag;

Clients: Republic of Venezuela;