1952 Kaiser, a US company, commenced operation in Jamaica. 1957 Kaiser entered into an agreement with government of Jamaica, relating to the ownership and operation of its bauxite mining facilities in Jamaica. The agreement contained a ‘non further tax’ clause by which Jamaica undertook not to impose any additional royalty or taxes other than those provided in the agreement.
1968 Jamaica ratified ICSID convention
The agreement was modified in 1969, and 1972 containing the ‘non further tax’ and referring to ICSID arbitration.
1974 Jamaica enacted the Buxite Production Levy Act, with additional tax to be paid on all bauxite extraction. Jamaica filed a notification to ICSID according to 25.4, removing disputes arising directly out of investments relating to minerals.
Kaiser initiated ICSID proceedings Jamaica refused to appoint an arbitration and the tribunal was established by the Chairman.