Mexico wins international arbitration against mining firm, claim of over $315 million dismissed

Mexico has secured a victory in an international arbitration case against U.S. mining company Silver Bull Resources, Inc. The World Bank's International Centre for Settlement of Investment Disputes (ICSID) unanimously ruled in Mexico's favor on May 29, dismissing the company's claim for over $315 million.

Silver Bull Resources had accused the Mexican state of blocking its mining project in Sierra Mojada, Coahuila. The company argued that since 1996, it had acquired mining concessions but a local cooperative, allegedly with local authorities' support, thwarted its project development starting in September 2019. Mexico countered that Coahuila authorities acted reasonably in the social conflict arising from Silver Bull's actions with local residents.

The arbitration tribunal found it lacked jurisdiction to rule on the case. It determined that the company's alleged grievances occurred outside the period covered by the North American Free Trade Agreement (NAFTA), under which the case was initiated. The tribunal also ordered Silver Bull to reimburse Mexico for significant arbitration expenses and costs.

The Ministry of Economy stated that this resolution reinforces legal certainty in international investment matters, confirming the limits of Mexico's obligations under international treaties. The ministry is currently reviewing the ruling to identify any protected information before its official publication on the ICSID website. Mexico was represented by legal counsel from its Directorate General of International Trade Legal Consultancy, supported by the law firms Tereposky & DeRose LLP and Pillsbury Winthrop Shaw Pittman LLP.