A World Bank tribunal on Monday ruled against Pakistan in relation to the unlawful denial of a mining lease for Reko Diq project in 2011.

The arbitration claim, ruled by a tribunal of the International Centre for Settlement of Investment Disputes (ICSID), had been submitted in 2012 by the Tethyan Copper Company Pty Ltd (TCC).

"Yesterday's decision by the ICSID tribunal rejected Pakistan's final defence against liability and confirmed that Pakistan had violated several provisions of its bilateral investment treaty with Australia, where TCC is incorporated," read a statement issued by Chilean mining company Antofagasta plc.

From March 22, the tribunal will start assessing the damages that are to be paid by Pakistan to TCC. The tribunal will consider both parties' claims to determine the amount that Pakistan must pay.

At conclusion of this phase, Tethyan will receive an award entitling it to fair market value of project at time that mining lease application was denied. A ruling on the amount of damages to be paid is expected in 2018.