Eureka? Damages Quantification in Investment Arbitration involving mining projects in Latin America

Abstract

This article examines the standards applied by international arbitral tribunals to quantify damages in investment disputes involving mining projects in Latin America. Starting from the full reparation principle under customary international law, it analyzes the evolution of investment protection treaties and the three main valuation approaches: market, income, and cost approach. The research reveals that while the applicable treaty generation influences the analytical framework, the determining factor is the mining project’s maturity at the time of the breach. This threshold delineates the boundary between reasonable economic expectation and speculation, conditioning the valuation methodology and the compensation amount.