GreenX Metals defends £252 million award against Poland

Investing.com | 22 January 2025

GreenX Metals defends £252 million award against Poland

GreenX Metals Limited (GreenX) has confirmed its stance in defending the £252 million (A$495 million / PLN 1.3 billion) arbitration award granted to the company, following Poland’s recent legal challenges. In October 2024, an international tribunal ruled in favor of GreenX, finding that Poland had breached its obligations under both the Australia-Poland Bilateral Investment Treaty and the Energy Charter Treaty.

The award, which includes compensation and interest, was contested by Poland in November 2024, with the country lodging a request to set aside the award in the courts of England and Wales. More recently, Poland has initiated a similar legal action in Singapore, challenging the jurisdictional aspects and alleging procedural unfairness in the tribunal’s decision.

GreenX has announced its intention to distribute the majority of the cash received upon satisfaction of the award to its shareholders. However, the company now faces Poland’s set-aside motions, which are reportedly difficult to win, as courts typically reject the majority of such applications. These motions are not general appeals and do not allow for a review of the claim’s merits but focus solely on jurisdictional and procedural grounds.

The legal threshold for a successful set-aside motion is notably high, and GreenX is actively defending against Poland’s claims. The company has stated it will provide updates to the market as per its continuous disclosure obligations.

The arbitration award and subsequent legal developments come after a unanimous ruling by the tribunal, which found Poland in violation of its treaty obligations. The additional interest of approximately £3.2 million (A$6.3 million / PLN 16 million) has accrued since the award was made.

This ongoing legal battle underscores the complexities of international arbitration and the challenges companies may face when enforcing such awards. GreenX’s updates on the matter are based on a press release statement, and further information on the claim is available in the company’s previous announcements.

source: Investing.com