Panthera Resources PLC (AIM:PAT) has announced that the chair of the arbitral tribunal has been appointed, completing the panel that will oversee its Australian subsidiary Indo Gold Pty Ltd’s (IGPL) claim against the Indian government.
Filed under a bilateral treaty between India and Australia, it relates to the Bhukia gold project in Rajasthan.
The dispute arises from the Indian government’s refusal to grant a prospecting licence for the project, despite substantial investment by IGPL since 2004.
IGPL alleges that changes to India’s mining laws in 2021 effectively nullified its rights, amounting to a breach of the treaty. The company is seeking damages for the loss of its investment.
Bhukia is considered a significant gold resource, with estimates of up to 7.2 million ounces of gold and additional copper, cobalt, and nickel credits. Initially, IGPL identified 1.74 million ounces through drilling in 2006.
A subsequent Geological Survey of India report expanded the resource estimate further.
Despite these findings, India has since auctioned part of the project area to a third party for $60 million in upfront payments and a 65.3% share of the extracted gold’s value.
To fund its legal proceedings, IGPL has secured $13.6 million in non-recourse litigation financing.