Guess which ASX copper share is rocketing 49% on Wednesday?

This ASX micro-cap is suing the Polish Government.

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Key points
  • The GreenX Metals share price is heading skywards today 
  • Its arbitration hearing for claims against the Polish Government has concluded 
  • GreenX Metals must now wait for a decision in the case 

It's a great day for the ASX copper share GreenX Metals Ltd (ASX: GRX) with its value skyrocketing on Wednesday.

GreenX Metals is engaged in the exploration and development of critical minerals resources projects. Its biggest focus is the Arctic Rift Copper (ARC) Project in Greenland.

The GreenX Metals share price is currently 49 cents, up 31% on yesterday's close.

But in earlier trading, the ASX copper share hit an intraday and 52-week high of 55 cents, up 48.6%.

A happy woman smiles as she looks at a tablet in a room with green plant life around her.

Image source: Getty Images

Why is this ASX copper share on fire today?

It's not what happened today but what happened yesterday that is likely pushing GreenX Metals higher.

The company announced the completion of its arbitration hearing regarding its claims against the Republic of Poland.

It's now a matter of waiting for the Arbitral Tribunal to render a decision in the case.

What's the legal case against Poland all about?

GreenX Metals is seeking damages of up to $1.3 billion in lost profits and damages arising from government actions that prevented the company from developing its Jan Karski and Debiensko projects.

According to GreenX Metals:

GreenX's dispute alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company's Jan Karski and Debiensko projects in Poland which effectively deprived GreenX of the entire value of its investments in Poland.

GreenX's investment dispute with the Republic of Poland is not unique, with international media widely reporting that the political environment and investment climate in Poland has deteriorated since the change in Government in 2015. As a result, there are a significant number of International Arbitration claims being bought against Poland.

GreenX Metals has made the claims under the Energy Charter Treaty (ECT) and the Australia-Poland Bilateral Investment Treaty (BIT).

GreenX Metals share price snapshot

With a market capitalisation of $94 million, GreenX Metals is a micro-cap among the ASX copper shares.

The GreenX Metals share price is up 111% in 2022. The company is part of the S&P/ASX 200 Materials Index (ASX: XMJ) which is up 3.5% this year.

This compares to a 6% dip in the S&P/ASX All Ordinaries Index (ASX: XAO) over the same period.

According to its website, GreenX Metals says: "Simply, there is no decarbonisation without copper …".

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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