GreenX Metals has announced a favourable outcome in its international arbitration case against Poland, over the Jan Karski coal project, with the company being awarded approximately $329.8m in compensation.
The dispute was brought under both the Australia-Poland Bilateral Investment Treaty (BIT) and the Energy Charter Treaty (ECT). The arbitration tribunal found that Poland had breached its obligations under the treaties, entitling GreenX Metals to compensation.
Under the BIT ruling, the reward to GreenX Metals includes interest compounded annually at the Sterling Overnight Interbank Average (SONIA) rate plus 1%, accruing from 31 December 2019 until the date of the award on 7 October 2024.
In a separate decision under the ECT, the company was awarded $239.5m, with similar interest conditions applied.
The tribunal clarified that the company is not entitled to double compensation, meaning any payment made by Poland under one arbitration will be set off against its liability in the other.
While the tribunal upheld GreenX Metals’ claims concerning the Jan Karski project, it did not find in favour of the company in relation to its Dębieńsko coal project. Both parties were ordered to bear their own legal costs for the proceedings.
The arbitration was conducted under the United Nations Commission on International Trade Law (UNCITRAL) rules, which do not provide for an appeal. Either party can request corrections or clarifications within 30 days of receiving the award.
Located in Lublin Province, southeast Poland, the Jan Karski project is an underground semi-soft coking coal mine. The coal project is estimated to have a production capacity of 6.3 million tonnes per year.
In August this year, GreenX Metals signed an earn-in agreement to earn a 90% interest in Group 11 Exploration, which holds the Tannenberg copper exploration licence in Germany.
