Rusoro Mining award for the El Callao gold mines: Venezuela's unquantified natural-resource counterclaim and Rusoro's role in the CITGO sale
- Government and regulators Venezuela: Rusoro caused damage to the natural resources of the Bolivarian Republic by adopting improper mining practices at Choco 10, contrary to its own mining plans; the claim was purely declaratory because Venezuela was unable to quantify it, and Rusoro refused to provide the information needed. ICSID tribunal (via italaw)
- Courts ICSID tribunal: Declared that it lacked jurisdiction to adjudicate the counterclaim. ICSID tribunal (via italaw)
- Government and regulators Venezuela: The nationalisation responded to environmental harm and violation of the rights of workers. ICSID tribunal (via italaw)
- Courts ICSID tribunal: Found expropriation without compensation in breach of article VII of the investment treaty. ICSID tribunal (via italaw)
An ICSID tribunal awarded Rusoro Mining US$966.5 million for Venezuela's 2011 nationalisation of its gold mines and declared that it lacked jurisdiction over Venezuela's counterclaim for damage to natural resources, which Venezuela had not quantified. Rusoro's judgment of about US$1.569 billion is discharged inside the court-approved CITGO sale.
Award of 22 August 2016. Venezuela's counterclaim for damage to natural resources was declared outside the tribunal's jurisdiction and was never quantified.
Status As of 19 October 2026: Rusoro's attached judgment is discharged under the Amber sale, which is on appeal in the Third Circuit (oral argument set for 21 October 2026); OFAC licensing of the sale is not on record.
- Rusoro Mining — Award of US$966.5 million plus interest; a package of cash and non-cash consideration in exchange for discharging its attached judgment of approximately US$1.569 billion US District Court, D. Del. (Judge Stark); copy hosted by Gold Reserve
- Koch — Co-holder with Rusoro in the credit bid of US$2,009,272,932.70 principal; non-cash consideration discharging approximately US$471 million US District Court, D. Del. (Judge Stark); copy hosted by Gold Reserve
- Venezuela — Ordered to pay US$966.5 million plus interest; its natural-resource counterclaim was declared outside the tribunal's jurisdiction ICSID tribunal (via italaw)
- Natural resources at the Choco 10 mine, El Callao — Damage alleged by Venezuela through improper mining practices; not quantified and not adjudicated ICSID tribunal (via italaw)
What happened
On 4 July 2008 Rusoro Mining and the Venezuelan state formed the VenRus joint venture (Rusoro 50%, state 50%). According to the Crystallex award, the Ministry of Mines announced in November 2008 that VenRus would operate Las Cristinas. In 2011 Venezuela nationalised the gold sector, and Rusoro's mines, mainly in the El Callao, El Dorado and Cuyuní districts of Bolívar State, including the Choco 10 mine near El Callao, were affected.
On 22 August 2016 an ICSID Additional Facility tribunal seated in Paris (Juan Fernández-Armesto, President; Francisco Orrego Vicuña; Bruno Simma) found expropriation without compensation in breach of article VII of the investment treaty, and a breach of the Annex paragraph 6 through the 2010 BCV export resolution. It held the 2009 measures time-barred. It awarded US$966,500,000 as compensation for the expropriation plus US$1,277,002 in damages for gold-export restrictions, with interest at USD LIBOR 1-year + 4% (minimum 4%) compounded annually from 16 September 2011, and US$3,302,500 in costs.
Venezuela brought a counterclaim alleging that Rusoro "caused damage to the natural resources of the Bolivarian Republic by adopting improper mining practices in the Choco 10 mine, contrary to its own mining plans". Venezuela called the counterclaim "purely declaratory, because it has been unable to quantify its claim", and said Rusoro had refused to provide the information needed. The tribunal declared that it "lacks jurisdiction to adjudicate the counter-claim". In its public-purpose defence of the nationalisation, Venezuela also said it responded to "environmental harm and violation of rights of the workers".
Rusoro became a judgment creditor in the court-ordered sale of CITGO's parent company. Under the Amber Energy bid approved by the District of Delaware on 25 and 29 November 2025, Rusoro receives a package of cash and non-cash consideration in exchange for discharging its attached judgment of approximately US$1.569 billion. Rusoro is a record holder in Amber's credit bid, with Koch, in a principal amount of US$2,009,272,932.70.
- 2008VenRus joint venture formed, Rusoro 50% and the state 50% (4 Jul)
- 2008Ministry of Mines announces that VenRus will operate Las Cristinas (Nov), as recorded in the Crystallex award
- 2011Gold-sector nationalisation; interest on the award runs from 16 September
- 2016ICSID award of US$966.5 million; counterclaim declared outside jurisdiction (22 Aug)
- 2025Rusoro's attached judgment of approximately US$1.569 billion discharged within the Amber purchase price (25 and 29 Nov)
What was said
“caused damage to the natural resources of the Bolivarian Republic by adopting improper mining practices in the Choco 10 mine, contrary to its own mining plans”
“purely declaratory, because it has been unable to quantify its claim”
“lacks jurisdiction to adjudicate the counter-claim”
“environmental harm and violation of rights of the workers”
“a package of cash and non-cash consideration”
Where accounts differ
Each party's account, side by side, with its source. The record does not settle these points; it shows them.
Rusoro caused damage to the natural resources of the Bolivarian Republic by adopting improper mining practices at Choco 10, contrary to its own mining plans; the claim was purely declaratory because Venezuela was unable to quantify it, and Rusoro refused to provide the information needed.
ICSID tribunal (via italaw)Declared that it lacked jurisdiction to adjudicate the counterclaim.
ICSID tribunal (via italaw)The nationalisation responded to environmental harm and violation of the rights of workers.
ICSID tribunal (via italaw)Found expropriation without compensation in breach of article VII of the investment treaty.
ICSID tribunal (via italaw)How it looked
Shown
- The nationalisation was presented as responding to environmental harm and violation of workers' rights.Venezuela, as recorded in the award · ICSID tribunal (via italaw)
- Rusoro was presented as having damaged natural resources through improper mining practices at the Choco 10 mine, contrary to its own mining plans.Venezuela's counterclaim, as recorded in the award · ICSID tribunal (via italaw)
Recorded
- Venezuela said it was unable to quantify its natural-resource damage claim and that Rusoro refused to provide the information needed.
- The tribunal declared that it lacked jurisdiction over the counterclaim.
- The tribunal found expropriation without compensation and a breach of the Annex paragraph 6 through the 2010 BCV export resolution; it held the 2009 measures time-barred.
- Rusoro's attached judgment of approximately US$1.569 billion is discharged within the Amber purchase price of US$5.892 billion.
- The sale order lists a credit bid for the Rusoro and Koch judgments with a principal of US$2,009,272,932.70.
Who gained
Reached nature or the ground
Gained elsewhere
Responses on record
- venezuela-gov (ICSID proceedings, before August 2016): Argued in its public-purpose defence that the nationalisation responded to environmental harm and violation of the rights of workers, and brought a counterclaim for damage to natural resources at the Choco 10 mine, which it said it was unable to quantify. · ICSID tribunal (via italaw)
In court and with insurers
Lawsuits and rulings
- 2016-08-22Claimant won$966.5m compensation for expropriation, plus US$1,277,002 for gold-export restrictions, interest at USD LIBOR 1-year + 4% (minimum 4%) from 16 September 2011, and US$3,302,500 costsRusoro Mining Ltd. v. Bolivarian Republic of Venezuela (ICSID Additional Facility, ARB(AF)/12/5)ICSID Additional Facility tribunal, seat Paris (Juan Fernández-Armesto, President; Francisco Orrego Vicuña; Bruno Simma) · Arbitration · Rusoro Mining Ltd. → Bolivarian Republic of Venezuela
The tribunal found expropriation without compensation (BIT Art. VII) and a breach of Annex paragraph 6 through the 2010 BCV export resolution, and held the 2009 measures time-barred. ICSID tribunal (via italaw)
- 2016-08-22DismissedVenezuela's counterclaim for damage to natural resources at the Choco 10 mineICSID Additional Facility tribunal · Arbitration · Bolivarian Republic of Venezuela → Rusoro Mining Ltd.
Venezuela alleged damage to its natural resources through improper mining practices at Choco 10, contrary to Rusoro's mining plans, and called the claim purely declaratory because it was unable to quantify it. The tribunal declared that it lacked jurisdiction to adjudicate the counterclaim. ICSID tribunal (via italaw)
- 2025-11-25Claimant won$1.57bn attached judgment of approximately US$1.569 billion, discharged within the purchase priceRusoro's attached judgment within the court-ordered CITGO saleUS District Court for the District of Delaware (Judge Leonard P. Stark) · Civil · Rusoro Mining Ltd. → Bolivarian Republic of Venezuela; PDVSA; PDVH
Under the Amber bid approved on 25 and 29 November 2025, Rusoro receives a package of cash and non-cash consideration in exchange for discharging its attached judgment. US District Court, D. Del. (Judge Stark); copy hosted by Gold Reserve
Insurers
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Nature
- Not measured Harm to nature: No independent ecological evaluation is on record.
- Disputed Whether Rusoro damaged Venezuela's natural resources at the Choco 10 mine
- Disputed Whether the nationalisation served a public purpose of environmental and workers' protection
Money
- None on record Venezuela's natural-resource counterclaim against Rusoro — Not quantified by Venezuela; declared outside the tribunal's jurisdiction.
Record
- Not measured Not measured: the natural-resource damage Venezuela alleged at the Choco 10 mine; Venezuela stated it was unable to quantify its claim.
- None on record None on record: a ruling on whether the alleged improper mining practices at Choco 10 occurred; the tribunal declared that it lacked jurisdiction over the counterclaim.
- Insufficient Insufficient: the current value of the Rusoro judgment beyond the court's figure of approximately US$1.569 billion.
- Not disclosed Not disclosed: the information Venezuela said Rusoro refused to provide for quantifying the counterclaim.
- None on record None on record: insurance relating to the nationalisation or the award.
Did the harm stop?
None on record. The 2011 nationalisation transferred Rusoro's mines to the state; no source states what changed in the mining practices at Choco 10.
Who paid?
Venezuela was ordered to pay US$966.5 million plus interest. Within the CITGO sale, Rusoro's attached judgment of approximately US$1.569 billion is discharged by a package of cash and non-cash consideration. None on record: any payment for natural-resource damage.
Sources
Courts
- Rusoro Mining Ltd. v. Bolivarian Republic of Venezuela, ICSID Case No. ARB(AF)/12/5, AwardICSID tribunal (via italaw) · 2016-08-22
- Crystallex International Corporation v. Bolivarian Republic of Venezuela, ICSID Case No. ARB(AF)/11/2, AwardICSID tribunal (via italaw) · 2016-04-04
- Opinion adopting Special Master's Updated Final Recommendation (D.I. 2553, Misc. No. 17-151-LPS)US District Court, D. Del. (Judge Stark); copy hosted by Gold Reserve · 2025-11-25
- Order (I) Approving Stock Purchase Agreement, (II) Authorizing Sale of the PDVH Shares (D.I. 2556)US District Court, D. Del. (Judge Stark); copy hosted by Gold Reserve · 2025-11-29
Connected cases
- Las Cristinas gold project: 2008 permit denial in the Imataca reserve, Crystallex ICSID award and court-ordered sale of CITGO's parent Venezuela · 2008–2026 Related matter
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- Government of Venezuela (Government) — here: Respondent; counterclaimant; there: Respondent; judgment debtor
- International Centre for Settlement of Investment Disputes (ICSID) (International organisation) — here: Arbitral forum; there: Arbitral forum
- Koch (Company) — here: Co-holder in the credit bid; there: Judgment creditor; non-cash consideration
- Amber Energy (Company) — here: Buyer of the PDVH shares; there: Buyer of the PDVH shares (Elliott affiliate)
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