The Overseas Private Investment Corp said it will pay $1.1 million to Revere Copper & Brass Inc. to settle a Jamaican expropriation dispute. The company had sought $90 million.
OPIC the U.S. government agency that insures U.S. companies against certain investment risks in developing nations, said an arbitration panel by a vote of two to one ruled that Revere should be paid the $1.1 million.
In New York, Revere said the decision by OPIC to pay the company only $1.1 million to settle the dispute is "a shocking injustice in the light of the intrinsic value of the property, even though it may be difficult to realize that value under present circumstances in Jamaica."
Revere said it is analizing the decision although it realizes that unless it elects to withdraw its claim or seeks to vacate the arbitration award it must transfer its stock interest in its Jamaican unit to OPIC against payment of the arbitration award.
Revere had told OPIC that its losses from Jamaica's expropriation of its bauxite-mining and alumina-processing facilities totaled the much larger amount. But OPIC rejected the $90 million claim, contending that Revere closed down its operations in Jamaica after a 1974 dispute with the Jamaica government over bauxite taxes.
OPIC said four other U.S. companies producing bauxite used in the manufacture of aluminum settle their tax disputes with the Jamaican government and continued operations there.