John Camargo, director in charge of the National Legal Defense Agency of the State, expressed his satisfaction with the result: “I could not be more pleased to report that Colombia absolutely defeated the Montauk mining company in the arbitration for the ban on mining in the Santurbán páramo”. This ruling not only ratifies the legitimacy of the country’s environmental regulatory measures, but also reinforces Colombia’s commitment to the preservation of its natural resources.
The Arbitral Tribunal stressed that Montauk Metals Inc. did not have a legitimate expectation that Colombia would not implement measures to protect the paramos. Besides, determined that the government’s actions were not arbitrary or unfair, but necessary for the conservation of these vital ecosystems. This decision aligns with a previous ruling by the same court, which in March dismissed a similar lawsuit by the mining company Red Eagle Exploration Limited for the ban on mining in Santurbán.
The Santurbán moor, an intertropical mountainous region of immense biodiversity, is crucial for the water supply in the Santander region. The protection of these ecosystems is essential not only for local fauna and flora, but also for the water security of millions of people.. The ICSID ruling reaffirms Colombia’s right to adopt regulatory measures in favor of the general interest and environmental protection.
This ruling also contrasts with a 2021 award related to the mining company Eco Oro Minerals, where although the legitimacy of the ban was recognized, it was considered that Colombia did not correctly apply the fair and equitable treatment standard of the FTA. However, the recent victory against Montauk and Red Eagle strengthens Colombia’s position in defending its environmental policies.
According to various media outlets, the ICSID decision not only represents a triumph for Colombia in economic terms, avoiding the payment of million-dollar compensation, but also a milestone in the fight for the protection of its most precious ecosystems.
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