A United Nations Commission on International Trade Law (UNCITRAL) tribunal has issued a partial award, dated June 2, in which it declared jurisdiction over the entirety of an expropriation claim brought by the Chinese mining company Junefield Gold against Ecuador. This decision is part of a dispute arising from the 1994 China-Ecuador Bilateral Investment Treaty (BIT).

The case centers on the Río Blanco mine in Azuay province, where Junefield alleges that, following local protests and the withdrawal of military protection by the State, it was prevented from accessing and operating the mine, and that its concessions were judicially cancelled.

The tribunal's majority, composed of Sofia Martins (chair) and Ignacio Suárez Anzorena, determined that they have jurisdiction over "all aspects" of the expropriation claim, interpreting that the BIT did not require a prior determination of expropriation by local courts. However, the tribunal unanimously declined jurisdiction over the investor's other claims related to fair and equitable treatment, protection and security, and the most-favored-nation clause.

The arbitrator appointed by Ecuador, Philippe Sands KC, issued a dissenting opinion, arguing that the BIT only granted jurisdiction to determine the amount of compensation for an expropriation, and not to decide on the existence of the expropriation itself.

This ruling is significant, as, according to Junefield's counsel, it strengthens existing case law that recognizes tribunals' jurisdiction over all aspects of expropriation claims under similarly worded treaties, benefiting Chinese investors.

In this relevant proceeding, the ROBALINO team in Quito, with partners Javier Robalino and Andrés Donoso, represents Junefield Gold, alongside Mayer Brown LLP and Johnson Stokes & Master. For its part, Ecuador is represented by Squire Patton Boggs and the Attorney General's Office (Procuraduría General del Estado).

For a more in-depth reading on this case, please refer to the original article: Chinese mining investor’s claim against Ecuador clears hurdle