News | 02 July 2025

LALIVE secures landmark victory for Canadian mining company in dispute with Republic of Peru

In a Latin American first, a tribunal found that the actions of a local community are attributable to the State under international law

International disputes firm LALIVE announces today that it has secured a significant victory for its client, Lupaka Gold Corp., in arbitration proceedings against the Republic of Peru under the auspices of the International Centre for Settlement of Investment Disputes (“ICSID”). The dispute arose under the Free Trade Agreement (“FTA”) between Canada and Peru and concerned Lupaka’s investment in the Invicta gold project, located in the Andean highlands of Peru.

The Tribunal, composed of Professor John R. Crook (President), Mr. Oscar M. Garibaldi, and Dr. Gavan Griffith KC, unanimously found that Peru had breached its obligations under the FTA by failing to provide full protection and security, fair and equitable treatment, and by unlawfully expropriating Lupaka’s investment. The Tribunal concluded that the actions of the Parán Community, including the blockade, occupation, and eventual seizure of the Invicta mine, were attributable to the State of Peru. It also found that Peru’s national authorities failed to exercise due diligence in protecting the investment, relying instead on a policy of dialogue that proved ineffective.

The Tribunal awarded Lupaka Gold Corp. compensation of USD 40.4 million plus interest, 100% of the amount claimed, as well as full reimbursement of its legal costs and expenses, amounting to USD 4.2 million. The award reflects the fair market value of the investment as of August 2019, when Lupaka lost control of the mine following the State’s failure to act.

LALIVE partners Dr Marc Veit (London) and Jaime Gallego (Geneva) led the cross-border team representing Lupaka, supported by counsel Luis Miguel Velarde Saffer (Geneva) and associates Stela Negran (London) and Guillermina Huber (London, no longer with the firm). Timothy Foden of Boies Schiller Flexner LLP acted as co-counsel until he resigned before the award was rendered.

Marc Veit comments: “We are grateful for the Tribunal’s careful consideration of the facts and law, and for the trust placed in us by Lupaka Gold. This award is the result of years of dedicated work by our team and reflects the importance of legal protections for foreign investors operating in complex environments and how States are responsible for illegal acts by its communities.”

The Republic of Peru was represented by a team from the Ministry of Economy and Finance and Arnold & Porter. Bench Walk Advisors provided funding to Lupaka in relation to the dispute.



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Key contacts

  • Marc D Veit
    Marc D Veit

    Partner
    Zurich



  • Jaime Gallego
    Jaime Gallego

    Partner
    Geneva

  • Luis Miguel Velarde Saffer
    Luis Miguel Velarde Saffer

    Counsel
    Geneva

  • Stela Negran
    Stela Negran

    Associate
    London