Warsaw-listed Australian mining company GreenX Metals won an arbitration case against Poland, receiving 1.3bn zlotys (€300m) in compensation for the Polish government’s obstruction of its coal mining plans.
In 2019, GreenX Metals said Poland had blocked its projects in the east and south of the country. Warsaw’s reluctance was reportedly due to concerns that the Australian company’s coal deposits would compete with state-owned coal mines.
The arbitration proceedings commenced in 2021 under the Australia-Poland Bilateral Investment Treaty. GreenX initially claimed compensation of more than €960 million.
The international tribunal ruled that the Polish government had breached its obligations under the Australia-Poland Bilateral Investment Treaty and the Energy Charter Treaty.
The Australian company formerly known as Prairie Mining has long claimed that Poland blocked its investments in two coal projects, Jan Karski and Dębieńsko. A tribunal eventually rejected claims related to the Dębieńsko project.
Both projects contain thermal coal, used for electricity generation, and strategically important coking coal necessary for steel production.
The case was handled in accordance with the United Nations Commission on International Trade Law Rules. After the ruling, the share price of GreenX Metals jumped 22.7 per cent to 2.23 zlotys on the Warsaw Stock Exchange on Tuesday.
