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                        <title>The Express Tribune</title>
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                        <description>The Express Tribune keeps you up to date with all the latest happenings from Pakistan and across the world!</description>
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			<title>Saudi Arabia 'interested' in acquiring govt stakes in Reko Diq mine</title>
			<link>https://tribune.com.pk/story/2446371/saudi-arabia-interested-in-acquiring-govt-stakes-in-reko-diq-mine</link>
			<comments>https://tribune.com.pk/story/2446371/saudi-arabia-interested-in-acquiring-govt-stakes-in-reko-diq-mine#comments</comments>
			<pubDate>Tue, 14 Nov 23 14:16:16 +0500</pubDate>
			<dc:creator>
				<![CDATA[Reuters]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2446371</guid>
			<description>
				<![CDATA[PM’s adviser on SIFC says Islamabad will enter talks with Riyadh after the valuation is completed]]>
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				<![CDATA[Saudi Arabia has shown interest in acquiring government stakes in Reko Diq gold and copper mine, an official said on Tuesday, adding that an international adviser was close to completing a valuation.

Barrick Gold Corp (ABX.TO) owns a 50% stake in the mine, with the remaining 50% owned by the governments of Pakistan and the province of Balochistan. Barrick considers the mine one of the world&#39;s largest underdeveloped copper-gold areas.

The government expects that the valuation to be completed before Dec. 25, Jahanzeb Khan, the prime minister&#39;s adviser on the Special Investment Facilitation Council (SIFC), told journalists.

He did not identify the adviser.

Pakistan has previously said Barrick would invest $10 billion in the project. Barrick in August said it was open to bringing in Saudi Arabia as one of its partners in the mine.

Read more:&nbsp;Investment in Reko Diq sought

Khan said that Islamabad will enter talks with Riyadh after the valuation is completed, and determine what its expectations are. The Saudi Arabian government did not immediately respond to a request for comment.

Pakistan is currently in the midst of a prolonged economic crisis, and narrowly averted sovereign default earlier this year after a last-gasp $3 billion bailout from the International Monetary Fund (IMF).

But the deal rests on the country&#39;s ability to bring in foreign direct investment to shore up its critically low foreign exchange reserves. Pakistan is banking on old allies in the Middle East, including Saudi Arabia, to lead the investment.]]>
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			<title>SC suggests CPEC-style authority on Reko Diq</title>
			<link>https://tribune.com.pk/story/2385817/sc-suggests-cpec-style-authority-on-reko-diq</link>
			<comments>https://tribune.com.pk/story/2385817/sc-suggests-cpec-style-authority-on-reko-diq#comments</comments>
			<pubDate>Fri, 11 Nov 22 05:02:29 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2385817</guid>
			<description>
				<![CDATA[Says previous agreement was declared null and void due to relaxation of rules for a particular company]]>
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				<![CDATA[The Supreme Court on Thursday suggested to the federal government to devise a policy and constitute an authority on the pattern of CPEC for the Reko Diq project, which would keep reviewing the multi-billion dollar venture.

The apex court made these remarks while hearing the presidential reference on the project.

President Arif Alvi, on the advice of Prime Minister Shehbaz Sharif, had filed the reference to seek the top court&rsquo;s opinion on the Reko Diq out-of-court settlement deal.

On Wednesday, the additional attorney general (AAG) told the Supreme Court that Barrick Gold Corporation&rsquo;s previous licence for mining gold in Balochistan&rsquo;s Reqo Diq area had been cancelled and it would now be given a new one.

A five-member larger bench led by Chief Justice Umar Ata Bandial and comprising Justice Ijazul Ahsan, Justice Munib Akhtar, Justice Yahya Afridi and Mazahar Ali Akbar Naqvi heard the case on Thursday.

During the course of proceedings, the chief justice while suggesting to constitute an authority and devise a policy on the Reko Diq project remarked that the previous agreement was declared null and void due to relaxation of rules for a particular company.

The top judge inquired whether the exemptions and relaxation of rules in the Reko Diq project could be made part of the policy. He said it will be easy for the court to take a decision once a policy is framed, adding that a uniform policy for all foreign investors would ensure transparency.

The AAG replied that country&rsquo;s biggest investment of $10 billion was being made in the Reko Diq project. He said the mega project will build the confidence of the foreign investors and bring investment in the country.

The chief justice asked the AAG to satisfy the court and remarked why the government was formulating a new law for a particular company.

He said time and again it was being said that the national exchequer would have to bear a burden of $10 billion if the Reko Diq project is not completed by December 15.

The AAP replied that the court was not being made scared and added that people would have to bear the brunt if a penalty of $10 billion was imposed and that Balochistan government was an equal shareholder in the agreement.

The chief justice said that Balochistan government was &ldquo;not a very strong authority&rdquo; and asked who would take care of the mining agreement and entire Reko Diq project.

He suggested to the government to form an authority on the pattern of the CPEC for the project, which would keep reviewing the venture.

He said the court did not want to see the mega project being destroyed again.
The top judge noted that the country was still bearing a burden of $4.5 billion in the Reko Diq project. He said the government could relax the rules to ease a deal but could not compromise on quality.

The court directed that the rights of the people in the adjoining areas of Reko Diq should not be affected.

Later, hearing of the case was adjourned till November 14.]]>
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			<title>'PM Imran saved Rs2.3 trillion of poor people during past 2 years'</title>
			<link>https://tribune.com.pk/story/2259787/pm-imran-saved-rs23-trillion-of-poor-people-during-past-2-years</link>
			<comments>https://tribune.com.pk/story/2259787/pm-imran-saved-rs23-trillion-of-poor-people-during-past-2-years#comments</comments>
			<pubDate>Sun, 16 Aug 20 13:16:50 +0500</pubDate>
			<dc:creator>
				<![CDATA[APP]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Islamabad]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2259787</guid>
			<description>
				<![CDATA[Shibli Faraz says amount was more than Pakistan’s three years development budget]]>
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				<![CDATA[Federal Minister for Information and Broadcasting Senator Shibli Faraz on Sunday said that Prime Minister Imran Khan had saved Rs2344 billion of the poor people through his strategy and efforts during the last two years.

This amount was more than Pakistan&rsquo;s three years development budget, the minister wrote on his official Twitter handle.




وزیراعظم عمران خان 2 سال میں اب تک غریب عوام کے 2344 ارب روپے اپنی حکمت عملی اور کوشش سے بچائیں ہے یہ رقم پاکستان کے تین سال کے ڈیولپمنٹ بجٹ سے زیادہ ہے

ریکوڈک 7 ارب ڈالر =1100 ارب روپے
کارکے 1.5 ارب ڈالر = 240 ارب روپے
جی آئی ڈی سی 400 ارب
آئی پی پی 604 ارب
&mdash; Senator Shibli Faraz (@shiblifaraz) August 16, 2020



He said that $7 billion were saved in Rekodiq project which were equal to Rs1,100 billion whereas $1.5 billion were saved in Karkey project which were equal to Rs240 billion.

Moreover, Shibli said Rs400 billion were saved in Gas Infrastructure Development Cess (GIDC) whereas Rs604 billion would be saved in new agreement with Independent Power Producers (IPPs).

Earlier, while addressing the nation on the country&rsquo;s 74th Independence Day, PM Imran had expressed hope that the country will one day become an Islamic welfare state, a goal he has been working towards since coming into power in 2018.

&ldquo;It was always a dream of our founding fathers &ndash; Muhammad Ali Jinnah and Allama Iqbal. The dream was to make it an Islamic-Welfare state where the law is upheld and everyone&rsquo;s rights were protected by the state regardless of their caste or creed,&quot; he said.

The premier said that this was a journey in which everyone would have to struggle and play their respective role.

He also congratulated the nation for facing and surviving the difficult economic times of the first two years of the PTI government. &ldquo;If the country had defaulted because of the loans taken by the previous government, then its consequences would have been very severe and the entire nation would have had to bear it.&rdquo;

PM Imran also said that there were negotiations between the government and the independent power producers which reached an agreement.

&ldquo;The people would benefit from it as the cost of generating electricity would be reduced and they would get cheap electricity,&rdquo; he said. &ldquo;We also have to rectify the distribution of electricity to cut line losses. When we reduce the burden of taxes and increase cheap electricity in the country, the result would be an industrial Pakistan.&rdquo;]]>
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			<title>Reko Diq arbitration: Can there be a settlement?</title>
			<link>https://tribune.com.pk/story/933501/reko-diq-arbitration-can-there-be-a-settlement</link>
			<comments>https://tribune.com.pk/story/933501/reko-diq-arbitration-can-there-be-a-settlement#comments</comments>
			<pubDate>Thu, 06 Aug 15 22:04:15 +0500</pubDate>
			<dc:creator>
				<![CDATA[rana.sajjad.ahmad]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category><category><![CDATA[Business]]></category><category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=933501</guid>
			<description>
				<![CDATA[We will have to wait and see if there will be one winner in Reko Diq case or if both parties will go for a settlement]]>
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				<![CDATA[We have been hearing news of the Pakistan government's efforts to reach a settlement with the Tethyan Copper Company (TCC) in connection with the Reko Diq matter involving copper and gold reserves worth billions of dollars. International arbitration proceedings before the International Center for Settlement of Investment Disputes (ICSID) and the International Chamber of Commerce tribunals are ongoing in this matter. More than two years after the Supreme Court declared the agreement with the TCC illegal, the government's efforts to reach a settlement with the TCC are instructive. Assuming the news reports are accurate, it signals a significant departure from the patriotic posturing and legal wrangling that we have witnessed over the past couple of years. In one of my op-eds on this subject published a couple of years ago, I had argued whether our national interest was served merely by generating nationalist hysteria to morph a purely legal issue into an issue about selling our natural resources for a pittance or by covering up the incompetence and corruption of our government officials and putting the blame on the foreign investor.

Almost two years on, there seems to be the realisation on the government’s part of its international contractual and treaty obligations and the potentially ominous implications of a failure to honour these both from the standpoint of foreign investment as well as Pakistan’s image in the international community. The important question now is whether or not the TCC would agree to settle and on what terms. Based on the available information, not surprisingly, the TCC is not too keen on settling this matter partly because the arbitral tribunal is expected to render an award in its favour of, by one estimate, $10 billion. Pakistan’s efforts to reach a settlement reinforce this view as it signals its expectation of an unfavourable decision.

While Pakistan’s motivation to settle is understandable given its ostensibly weaker position, why would the TCC want to settle? If it is expecting a favourable award of a substantial amount, why would it agree to settle for a lower amount? To answer these questions, we need to consider the relevant factors that parties to international arbitration proceedings take into account in their decisions to reach a settlement after arbitration proceedings have been initiated. These factors include the costs of arbitration and the likely duration of the proceedings, the strength or weakness of the party’s case, concerns about the likely place of enforcement and how lengthy and difficult enforcement could be and the possible inadequacy of the assets of the opposing party. The TCC would certainly consider some, if not all, of these factors before taking a final decision on whether to reach a settlement with Pakistan.

In terms of the costs of arbitration, in view of the expected amount of the arbitral award, these costs would just be a fraction of the award and may not be a strong consideration for the TCC to reach a settlement. Regarding the likely place of enforcement, that is, Pakistan and any other countries where its government owns commercial assets, the TCC might be concerned about how much time it would take and whether the award could be fully or partially enforced. This is primarily because there will most likely be stiff resistance to enforcement of the arbitral award by Pakistani courts, especially one related to Pakistan’s natural resources, a subject that evokes patriotic and nationalistic fervour.

Although Pakistan has enacted the New York Convention and the ICSID convention, enforcement of foreign arbitral awards may still not be considered straightforward as our justice system may resort to the few narrow exceptions in these laws as grounds for refusing enforcement. Ironically, this xenophobic approach may well turn out to be an advantage for Pakistan as it could motivate the TCC to come to the negotiating table.

One of the objectives of arbitration proceedings is facilitating a consensual resolution of the dispute and statistics show that a majority of parties enter into arbitration proceedings with the hope of reaching an amicable settlement. Furthermore, an amicable settlement with the support of the arbitral tribunal is generally considered more favourable for both parties than concluding the proceedings by award, where one party wins and the other loses. We will have to wait and see if there will be one winner in the Reko Diq case or if both parties will go for the presumably win-win option by reaching a settlement. 

Published in The Express Tribune, August 7th,  2015.

Like Opinion &amp; Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.]]>
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			<title>Ready, set, start project!: Reko Diq to yield hefty profit for Balochistan</title>
			<link>https://tribune.com.pk/story/500886/ready-set-start-project-reko-diq-to-yield-hefty-profit-for-balochistan</link>
			<comments>https://tribune.com.pk/story/500886/ready-set-start-project-reko-diq-to-yield-hefty-profit-for-balochistan#comments</comments>
			<pubDate>Thu, 31 Jan 13 06:31:35 +0500</pubDate>
			<dc:creator>
				<![CDATA[mohammad.zafar]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=500886</guid>
			<description>
				<![CDATA[Dr Mubarakmand puts earning estimate at $321m for annum.]]>
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				<![CDATA[Renowned scientist Dr Samar Mubarakmand said during a briefing to Balochistan Governor Nawab Zulfiqar Ali Magsi on Wednesday that the provincial government has won the Reko Diq case in the International Court of Justice (ICJ) and will now implement the project.


“Work will first begin on 2.2 billion tonnes of ore and gold reservoirs worth $400 billion,” he said.

According to Dr Mubarakmand, the Geological Survey of Pakistan spotted the Reko Diq reservoirs in 1978 and an agreement was reached with Australian company Tethyan in 1993. Now, however, this agreement has come to an end and Balochistan has also won the case in the ICJ.

He further said that, under this project, as many as 15,000 tonnes of raw material will be excavated annually worth $411 million and government of Balochistan is expected to earn an annual profit of $321 million.

The provincial government allocated Rs1,400 million for this project whereas only the water supply will take Rs1,980 million, being completed in a span of a year and a half.

Furthermore, Dr Mubarakmand said the local people of Balochistan will be recruited for the project’s non-technical positions.

Balochistan Governor Magsi stressed upon a timely execution of the project so that the masses can benefit as soon as possible and directed both the chief secretary and the finance secretary to ensure an efficient provision of funds. Additionally, he, too, emphasised the need for the local people to be given more jobs, and for project offices to be established in Quetta instead of Islamabad.

Furthermore, Magsi directed the authorities concerned to guarantee foolproof security arrangements.

Published in The Express Tribune, January 31st, 2013.]]>
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			<title>Killing another golden goose</title>
			<link>https://tribune.com.pk/story/496988/killing-another-golden-goose</link>
			<comments>https://tribune.com.pk/story/496988/killing-another-golden-goose#comments</comments>
			<pubDate>Mon, 21 Jan 13 17:28:07 +0500</pubDate>
			<dc:creator>
				<![CDATA[feisal.naqvi]]>
			</dc:creator>
			<category><![CDATA[Opinion]]></category>
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			<description>
				<![CDATA[Right approach to Reko Diq would require SC to check whether foreign investors were aware of rules not being followed.]]>
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				<![CDATA[On January 7, 2013, the Supreme Court of Pakistan released the short order in the Reko Diq case. To the surprise of very few, the Court found against the respondent Tethyan Copper Company (TCC) and held that the 1993 joint venture agreement between the Government of Balochistan and the predecessors in interest of TCC was not valid.

Since the Supreme Court (SC) has yet to release its detailed reasons, speculation and criticism of the short order may appear unwarranted. At the same time, I still think there is much to be said for sifting through the entrails of the short order. To digress for a moment, there is a famous Sherlock Holmes story in which, he explains to Dr Watson the significance of the dog that did not bark. Similarly, what makes the short order interesting is not because of what it says but because of what it doesn’t say.

Lawyers and courts draw a distinction between different kinds of wrongdoing and, in particular, between misfeasance and malfeasance. Misfeasance means that someone has acted in a manner contrary to that prescribed by law, for example, by signing a contract without obtaining board approval. Malfeasance means deliberate misfeasance. For example, a government servant who sells state secrets for money has committed malfeasance.

In the case of the short order, what I do not see is any discussion of malfeasance. Instead, the short order merely says that the 1993 joint venture agreement (and subsequent agreements) was ‘illegal’ without clarifying whether the illegality was a product of simple misfeasance or of malfeasance (such as bribery). Given the time and effort devoted to this issue, my tentative conclusion is that the SC did not find any malfeasance. If so, we have a problem.

Before going further, let’s review the facts. In 1993, the Government of Balochistan (GoB) entered into a JV with BHP Billiton. In 2000, the JV was amended to allow BHP Billiton to sell out (which it did in 2002). Between 1993 and 2011, the JV spent approximately $440 million in exploring parts of Balochistan to find massive commercially exploitable deposits of copper and gold. In 2011, the JV applied to convert its exploration licence into a mining lease. In 2013, the SC has held that the JV has no rights whatsoever, apparently without finding any malfeasance on the part of the foreign investors.

If the above factual summary is correct, then the inescapable conclusion is that the foreign investors have been penalised for the incompetence of the GoB. In other words, the foreign investors have been told that their agreement — and their investment of close to half a billion dollars — is worthless not because they did anything wrong, but because the Government of Balochistan did not follow the correct protocols. I don’t find that fair.

The standard legal response to a Reko Diq type problem is that there is no estoppel against law. In other words, if the law prescribes a particular way of doing something, and if that method has not been followed, then no matter what the consequences, the step taken remains illegal and can be set aside at any point in time.

I appreciate the sentiment that the illegal cannot be treated as the legal merely because of the passage of time, but this is certainly not the law when it comes to other areas. For example, in the case of private contracts, the ‘indoor management’ rule provides that companies cannot wriggle out of their agreements by citing non-compliance with internal procedures. Similarly, the Limitation Act of 1908 prescribes different time periods after which civil actions are not maintainable. You cannot, for example, sue to enforce a contract more than three years after you become aware of its breach.

My view is thus that the ‘no estoppel against law’ approach is unfair because it shifts the burden of legality onto private parties. In other words, if I am contemplating a commercial transaction with a government entity, it is now my responsibility to ensure that each and every ‘t’ is crossed and each and every ‘i’ is dotted. I see no reason why the government may be the beneficiary of its own incompetence.

More importantly, this ‘zero-tolerance’ approach is dangerous because it makes investment in Pakistan an extremely dicey business. If hundreds of millions of dollars of investment can be thrown into jeopardy through the autopsy of a 20-year-old agreement, who is ever going to bother investing in Pakistan? This particular case was already marred by the suspicion that the Supreme Court was catering to media plaudits and jingoistic nationalism. It was, therefore, particularly necessary for the SC to provide a reasoned and fair basis for interfering with investor rights. So far, at least, I have not seen any such basis.

In my view, the court should have applied the ‘bona fide purchaser’ rule in the Transfer of Property Act of 1882. What that provides is that (1) normally a buyer of land only gets as good a title as the seller actually had; but (2) there is an exception for purchasers in good faith. In other words, if I buy property in good faith from someone who looks like they actually have the title to the land in question, then the law will deem me to be the proper owner even if it turns out that the seller was a complete fraud.

Applying that approach to Reko Diq would require the SC not only to check if rules were violated but also whether the foreign investors were aware — or should have been aware — that rules were not being followed. If there is any basis to conclude that the investors did not act in good faith, well and good. But in the absence of any such conclusion, the investors would be left alone.

Pakistanis are fond of clichés, none more so than the parable of the golden goose. If the detailed reasoning of the Reko Diq decision does not explain why it was equitable to rob foreign investors of their contractual rights, the rest of the world will only conclude that the foreign investors were wronged. And I, for one, will agree with them.

Published in The Express Tribune, January 22nd, 2013.]]>
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			<title>Exploratory investments: Germany eyeing Balochistan Gold and Copper Project</title>
			<link>https://tribune.com.pk/story/492295/exploratory-investments-germany-eyeing-balochistan-gold-and-copper-project</link>
			<comments>https://tribune.com.pk/story/492295/exploratory-investments-germany-eyeing-balochistan-gold-and-copper-project#comments</comments>
			<pubDate>Thu, 10 Jan 13 20:45:32 +0500</pubDate>
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				<![CDATA[]]>
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			<category><![CDATA[Balochistan]]></category><category><![CDATA[Business]]></category>
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				<![CDATA[German envoy visits region to learn ground realities before committing.]]>
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				<![CDATA[Germany has evinced keen interest to invest in the Balochistan Gold and Copper project. The German envoy Dr Cyrill Nunn said, “Being a trading nation, we intend to invest in the Balochistan Gold and Copper project.”

During his maiden visit to Quetta, the envoy met with Governor of Balochistan Nawab Zulfiqar Ali Magsi, Minister for Mines and Minerals Mir Abdul Rehman Mengal and other officials to learn the rules, terms and conditions, expectations and relevant laws before committing a sizable amount of investment in the region.

Terming subject of protection to the foreign entrepreneurs in Balochistan an important issue, Nunn said maintaining law and order situation and provision of security to international companies intending to invest in the region will definitely be very basic questions and matter of concern.

The infamous Reko Diq project is in a long-running dispute between Tethyan Copper Company and the Balochistan government over the right to develop the $3.3 billion copper-gold deposit.

The Reko Diq site was expected to produce about 200,000 tons of copper and 250,000 ounces of gold annually, if developed, and would have marked the largest foreign direct investment into Pakistan mining sector and a major investment in Balochistan.



“Vast prospects of investment exist in various sectors of Balochistan, therefore German and other international investors should reap benefits from these opportunities,” said Nunn.

The envoy termed the German-funded Merck pharmaceutical company as a success story in Balochistan and emphasised that Germany had impressive experience with its pharmaceutical operations in Balochistan, however he asked the relevant authorities to provide a favourable environment so that it can continue to work smoothly in the future.

Bilateral trade stood at $2.3 billion in 2012, which was 10% higher than the previous year. Nunn stressed that the two countries were in coordinating and working on lines to increase the current volume of trade besides enhancing bilateral cooperation in various fields.

Published in The Express Tribune, January 11th, 2013.

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			<title>SC terms Reko Diq mining lease ‘illegal’</title>
			<link>https://tribune.com.pk/story/490506/sc-terms-reko-diq-mining-lease-%e2%80%98illegal%e2%80%99</link>
			<comments>https://tribune.com.pk/story/490506/sc-terms-reko-diq-mining-lease-%e2%80%98illegal%e2%80%99#comments</comments>
			<pubDate>Mon, 07 Jan 13 08:30:44 +0500</pubDate>
			<dc:creator>
				<![CDATA[web.desk]]>
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			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=490506</guid>
			<description>
				<![CDATA[Court announces short verdict, admits applications against Tethyan Copper Company.]]>
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				<![CDATA[The Supreme Court of Pakistan termed the lease of gold and copper mines in Reko Diq to Tethyan Copper Company (TCC) “illegal”, reported Express News on Monday.

The court had reserved the 16-page judgement in the case on December 21, and announced the short verdict today. The court also accepted applications to hear against TCC.

Several identical petitions had been filed in the SC against the lease of gold and copper mines in Reko Diq to TCC – a consortium of Canada-based Barrick Gold and Chile-base Antofagasta Minerals.

TCC had invoked the jurisdiction of the International Chambers for Commerce and International Centre for Settlement of Investment Disputed against the government of Pakistan for not renewing the prospective Reko Diq minerals licence in accordance with Balochistan Mining Rules 2002.

Reko Diq is a multi-billion dollar project in the area of district Chaghi of Balochistan where millions of tonnes of copper and gold were identified in different reports prepared by world renowned companies.]]>
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			<title>Weekly fixtures: SC to resume Reko Diq, NICL scam cases</title>
			<link>https://tribune.com.pk/story/470885/weekly-fixtures-sc-to-resume-reko-diq-nicl-scam-cases</link>
			<comments>https://tribune.com.pk/story/470885/weekly-fixtures-sc-to-resume-reko-diq-nicl-scam-cases#comments</comments>
			<pubDate>Sun, 25 Nov 12 05:41:00 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=470885</guid>
			<description>
				<![CDATA[The court will hear the IB funds case on November 28.]]>
			</description>
			<content:encoded>
				<![CDATA[The Supreme Court is set to resume some important cases, including the Karachi law and order situation case and the Reko Diq mining venture case, in the week commencing November 26.


A four-member bench, comprising Justice Anwar Zaheer Jamali, Justice Khilji Arif Hussain, Justice Sarmad Jalal Osmany, Justice Amir Hani Muslim and Justice Muhammad Ather Saeed, will take up the suo motu case regarding law and order situation in Karachi. Two different benches will hear routine cases during the week.

Prominent fixtures for the week also include a petition related to the Reko Diq exploration and mining joint venture in Balochistan; the multi-billion corruption scandal in the National Insurance Company Limited (NICL); fortnightly compliance report of the National Accountability Bureau in the Rental Power Projects (RPPs) case and the misuse the Intelligence Bureau (IB) funds.

A three-judge bench of the apex court, headed by Chief Justice Iftikhar Muhammad Chaudhry and comprising Justice Sheikh Azmat Saeed and Justice Gulzar Ahmad, will hear these cases.



The court will hear the IB funds case on November 28. It had earlier delinked the case from the Asghar Khan case for separate hearing after a news report claimed that the ruling Pakistan Peoples Party misused Rs270 million from IB funds to form a government of choice in Punjab.

The court has issued notices to the relevant authorities, Attorney General Irfan Qadir and the publisher of The Express Tribune, in this regard.

The court will also resume hearing the Reko Diq mining case from Monday. The International Arbitration Counsel is also hearing the case.

International companies investing in the project took the Balochistan government to the court, which will look into the legality of a lease agreement between the government and the foreign companies.

During last week’s hearing, Khalid Anwar, counsel for the Tethyan Copper Company Pakistan (TCCP), contended that his client had invested $80 million for mining of copper and gold in the vicinity after acquiring the lease license, and requested the court to allow TCCP to start the operation.



Anwer dispelled the impression that TCCP was ‘robbing’ the national mineral resources from Reko Diq, adding that no rules were relaxed while granting a lease license to the TCCP.

During proceedings, counsel for the Jamaat-e-Islami, Raza Kazim and former senator Muhammad Azam Swati requested the court to declare the agreement illegal and allow the provincial government to mine at Reko Diq.

On November 29, the same bench will also take up case related to the NICL scandal, while the out-of-turn land allotment to the Gun and Country Club by the Capital Development Authority has been fixed for November 30.

Published in The Express Tribune, November 25th, 2012.]]>
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			<title>Reko Diq case: Counsel admits Pakistan free to ink accords with foreign firms</title>
			<link>https://tribune.com.pk/story/465313/reko-diq-case-counsel-admits-pakistan-free-to-ink-accords-with-foreign-firms</link>
			<comments>https://tribune.com.pk/story/465313/reko-diq-case-counsel-admits-pakistan-free-to-ink-accords-with-foreign-firms#comments</comments>
			<pubDate>Wed, 14 Nov 12 01:04:36 +0500</pubDate>
			<dc:creator>
				<![CDATA[]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=465313</guid>
			<description>
				<![CDATA[Islamabad can sign deals with countries with which it has no treaties.]]>
			</description>
			<content:encoded>
				<![CDATA[The counsel for a petitioner in the Reko Diq mining agreement issue on Tuesday admitted before the Supreme Court that the government was free to enter into commercial agreements with foreign companies of those countries with which it had no treaties; but such accords will be operated within the framework of Pakistan’s legislation.


Syed Raza Kazim, counsel for Dr Abdul Haq Baloch, one of the petitioners, resumed his arguments before the three-member bench including Chief Justice Iftikhar Muhammad Chaudhry.

The petitioner had moved an application seeking initiation of criminal proceedings against the provincial government for violating the May 25, 2011 order of the court. Kazim argued that the Tethyan Copper Company Australia (TCCA) was not a mining company and subsequently the Tethyan Copper Company Pakistan (TCCP) was established to undertake the project.

The chief justice observed that such agreements will fall within the jurisdiction of the federal government and not of provincial governments. He said the BHP Minerals – a mining company – in 1989 tried exploration in the area but failed and signed an agreement on February 7, 1998 with the TCCA. He questioned under which rules the relaxation was granted as the government was required to be in the picture under the relevant legislation.

Kazim replied that the TCCA was not controlling anything in Pakistan as after the year 2000 as it was formally sold out by BHP Minerals to Tethyan’s Pakistan counterpart.

The bench adjourned hearing and asked the counsel to conclude his arguments on Wednesday with relevant documents.

Published in The Express Tribune, November 14th, 2012.]]>
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			<title>PML-N demands fair probe into precious metals deal in Balochistan</title>
			<link>https://tribune.com.pk/story/407825/pml-n-demands-fair-probe-into-precious-metals-deal-in-balochistan</link>
			<comments>https://tribune.com.pk/story/407825/pml-n-demands-fair-probe-into-precious-metals-deal-in-balochistan#comments</comments>
			<pubDate>Fri, 13 Jul 12 10:30:25 +0500</pubDate>
			<dc:creator>
				<![CDATA[zahid.gishkori]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=407825</guid>
			<description>
				<![CDATA[Senator Ishaq Dar questions who is responsible for the 'shady deal' on state’s natural resources.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistan Muslim League-Nawaz (PML-N) has demanded a fair probe into a controversial deal between the government and various international firms to acquire reserves of gold, copper and silver in Balochistan.

PML-N, the largest opposition party in Senate, demanded probe into reserves of gold and silver at a time when an international firm, which was awarded a contract claimed $5 billion on account of damages.

The firm sought help from international arbitrators to receive damages from the government of Pakistan, which according to the company, had violated the agreement.

Leader of the Opposition in the Senate Ishaq Dar said, “There is some kind of fishy dealing in the agreement in Reko Diq and Saindak projects. We demand a fair probe in the whole deal, which now may cost billions of dollars to the national kitty.”

Dar questioned during the session, “Who is responsible for this shady deal on state’s natural resources?” He added that the issue must be discussed in the meeting of Council of Common Interest (CCI).

Tethyan Copper Company, a joint venture between Chile's Antofagasta and Canadian Barrick Gold projected that the mine would produce at least $60 billion based on the long-term copper and gold prices of $2.2/pound and $925/ounce, respectively.

It had also estimated that the mine would be worth almost $120 billion, with Balochistan getting a quarter’s share after operating costs are recovered.

Advisor on Petroleum and Natural Resources Dr Asim Hussain informed the House that discoveries of gold and silver have been reported from various parts of the country including Balochistan, Gilgit-Baltistan and Khyber-Pakhtunkhwa.

There are estimated 1,339 tons in reserves of gold in Saindak and Reko Diq projects. The reserves of gold in Saindak are 63 tons while over 74,707 tons reserves are silver in it, Dr Hussain told the House. The reserves of gold in Reko Diq project are above 1,275.7 tons while silver reserves could not be quantified so far, he added.

Dr Hussain said, “No work is going on there as the international firms and Government of Pakistan went into litigation in various courts.”

The Senate was informed on Friday that the government of Pakistan had imposed a ban on setting up of new CNG stations in the country on February 6, 2008, but the band was lifted for establishing new CNG stations in Balochistan on August 8, 2008 which was again imposed by the government on October 4, 2011.

Advisor on Petroleum and Natural Resources Senator Zahid Khan said that the period when the ban was lifted, 38 CNG stations were set up in Balochistan.

Reponsing to a question, the advisor clarified that Oil and Gas Development Company Limited (OGDCL) has not issued any Term Finance Certificates (TFC) to raise funds to tackle the circular debt.

Khan said that efforts to resolve the circular debt were being done for quite some time. In this regard, Ministry of Water and Power had submitted a summary to Economic Coordination Committee proposing partial resolution of power sector circular to the TFC to be floated by Pakistan Electric Power Company (Private) Limited (PEPCO) or the Power Holding (Private) Limited for Rs82 billion.]]>
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			<title>Balochistan seeks public listing for Saindak, Reko Diq</title>
			<link>https://tribune.com.pk/story/392361/balochistan-seeks-public-listing-for-saindak-reko-diq</link>
			<comments>https://tribune.com.pk/story/392361/balochistan-seeks-public-listing-for-saindak-reko-diq#comments</comments>
			<pubDate>Tue, 12 Jun 12 03:36:13 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shezad Baloch]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=392361</guid>
			<description>
				<![CDATA[Announces Rs180 billion budget; spending increases in education, law enforcement.]]>
			</description>
			<content:encoded>
				<![CDATA[The Balochistan government plans to list its stake in the multi-billion dollar Saindak and Reko Diq copper and gold mines on a stock exchange.


Balochistan Finance Minister Mir Asim Kurd Gailu made the announcement in the provincial assembly in Quetta on Monday during his speech laying out the provincial budget for fiscal year 2013. The announcement is likely to create significant interest among potential investors if Balochistan is looking to reduce or even exit its stake in the mines.

The provincial government also announced that it would be allocating Rs8.5 billion ($90 million) towards its 25% share in the Reko Diq mine copper mine. Balochistan will set up an investment board that will aim to manage the listing of the Quetta’s stake in the mines. Gailu indicated that the government wanted to capitalise on its investment, even though it has been locked in a lengthy court battle with its two foreign partners in the Reko Diq mine: Chile’s Antofagasta and Canada’s Barrick Gold.

The Rs180 billion budget is the fifth in a row delivered by the Pakistan Peoples Party-led coalition in Balochistan. Despite being an election year, the government managed to resist the urge to undertake any drastic populist measures. Quetta expects to balance its budget for the fiscal year ending June 30, 2013.

The overwhelming bulk of Balochistan’s revenues come in the form of transfers from the federal government in one form or another. The province has seen its budget nearly double in size since the passage of the 18th Amendment to the Constitution and the 7th National Finance Commission Award in 2010.

The single biggest segment of the Balochistan budget is education, where the provincial government will spend about Rs24.5 billion in 2013, including Rs2 billion from the development budget. This amount comes to about 13.6% of the total budget. Among the development priorities for the government in the coming year will be to build 150 new schools.

Quetta is allocating 5.5% of its total budget – or about Rs9.9 billion – to healthcare. This amount is an 11% increase over the previous year’s allocation, on par with inflation during the previous year. Another Rs 13.5 billion, or 7.5% of the total budget, will be spent on law and order, an increase of 17.3% over the previous year. The Balochistan police do not patrol most of the province’s territory, which falls under several federally- controlled militias.

About 20% of the Balochistan budget – Rs35.8 billion – will be spent on development programmes. This amount is about 14% higher than the allocation for the outgoing fiscal year.

Among the more unique projects being funded by the government is a Rs888 million solar home electricity system, which is aimed at energy conservation in a province where 20-hour power outages are the norm. Another Rs800 million will be spent completing the Pasni Fish Harbour in a project funded by the government of Japan. The province will spend Rs12 billion building roads.

Perhaps interestingly for the poorest province in the federation, Quetta decided to raise the minimum wage in the province from Rs7,000 per month to Rs9,000 – the highest in the country.

The provincial government did announce at least a few populist policies, such as the plan to recruit up to 15,000 young people into the Balochistan government. In addition, the government will spend Rs7 billion subsidising the electricity for agricultural tube-wells in the province.

And following the federal government’s lead, Balochistan will be awarding an ad hoc pay increase of 20% to public employees in the province.

Balochistan’s estimates its own revenue collection to clock in at a paltry Rs5.2 billion in 2013, up by only 7.3% over the outgoing year’s amount.

Published In The Express Tribune, June 12th, 2012.]]>
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			<title>Supreme Court seeks time from ICC to settle Reko Diq case</title>
			<link>https://tribune.com.pk/story/332965/supreme-court-seeks-time-from-icc-to-settle-reko-diq-case</link>
			<comments>https://tribune.com.pk/story/332965/supreme-court-seeks-time-from-icc-to-settle-reko-diq-case#comments</comments>
			<pubDate>Tue, 07 Feb 12 14:31:22 +0500</pubDate>
			<dc:creator>
				<![CDATA[azam.khan]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=332965</guid>
			<description>
				<![CDATA[Court looks to dispose of the case on merit; aims to remove illegalities in the deal.]]>
			</description>
			<content:encoded>
				<![CDATA[The Supreme Court of Pakistan on Tuesday directed the government to seek appropriate time from the International Court of Arbitration (ICC) to let the apex court decide the Reko Diq case on merit.

Chief Justice Iftikhar Muhammad Chaudhry, who was heading a three-member bench, dictated the order while hearing the case. In the order, the court directed the federal and Balochistan governments to approach the ICC and International Counsel for Settlement on Investment Disputes (ICSID) for an extension in the period of nominations so that the court may dispose of the matter.

During the hearing, the main question before the court was how to ask the international bodies to slow down the process to enable the Supreme Court of Pakistan to remove illegalities in the deal.

Raza Kazim, the lawyer of petitioner Maulana Abdul Haq Baloch, asked the court to stop the party which had gone for arbitration and asked that it should be withdrawn and resolved in the local courts. He requested the court to pass a stay order in this regard.

The counsel for Tethyan Copper Company (TCC), Khalid Anwar informed the court that it should refrain from passing such orders, as “the court orders have no compulsion on the international front and it would be disregarded.”

He also added that the credibility of the court would be damaged internationally.

The TCC has moved the ICC against the Balochistan government for rejecting its application for mining lease, upon the completion of the feasibility study. It has also filed a request for arbitration at the International Centre for Settlement of Investment Disputes, against the federation.

Anwer said that if the court passed an order in this regard, it may further increase legal complications at the domestic and international level.

TCC’s counsel, while answering a question, informed the court he was only representing TCC, while it was TCC Australia that had taken the government to arbitration. He said TCC Australia was not on the court’s notice, which is why no one was there to represent it.

Ahmer Bilal Sufi, counsel for the Balochistan government, told the court that the parties should approach ICC and ICSID themselves and say that the case is in the Supreme Court, and inform them that the local courts are in a position to rule on any illegality or unlawfulness in the agreement.

Sufi referred to the 1958 New York convention to support of his arguments.

Advocate General Balochistan, Amanullah requested the court to not go into arbitration. “This is a sensitive case and involves billions of rupees,” he said.

After hearing all the stakeholders in the case, the court passed a consensus-based interim order. Commenting on the court’s order, one of the lawyers of the case told The Express Tribune that everyone in the court was happy for “nothing”.

The court has adjourned the hearing for two weeks.]]>
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			<title>Reko Diq: Balochistan government refuses to grant license to Tethyan Copper</title>
			<link>https://tribune.com.pk/story/292708/reko-diq-balochistan-refuses-to-grant-license-to-tcc</link>
			<comments>https://tribune.com.pk/story/292708/reko-diq-balochistan-refuses-to-grant-license-to-tcc#comments</comments>
			<pubDate>Wed, 16 Nov 11 11:29:54 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shezad Baloch]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category><category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=292708</guid>
			<description>
				<![CDATA[Official says TTC can appeal against the decision in court, Balochistan govt reserves right to refuse mining license.]]>
			</description>
			<content:encoded>
				<![CDATA[The Balochistan Mining Committee (BMC) has refused to grant a mining license to Tethyan Copper Company (TCC) for the Reko Diq project under Balochistan Mines Rule 2002.

The BMC, headed by director general Mines and Mineral Department Balochistan, was formed to examine the feasibility report of TCC on the Reko Diq project.

(Read: Reko Diq project: Balochistan can refuse mining licence, says official)

A senior official told The Express Tribune that the Advocate General of Balochistan Amanullah Kanrani will submit a report provided by the BMC to the Supreme Court today (Wednesday). The report says that the feasibility report provided by TCC was incomplete.

When the AG was approached by The Express Tribune, he confirmed that he had received the Balochistan government decision and will submit it to the supreme court. The court had earlier sought an explanation on details of the agreements between the Balochistan government and TCC.

(Read: Reko Diq reserves: Mining aspirant serves notice to provincial government)

TCC maintained that the feasibility report was completed and submitted to the Balochistan government earlier in August 2010 under an existing agreement between TCC and the government, the Chagai Hills Exploration Joint Venture Agreement (CHEJVA).

(Read: Reko Diq: TCC files notice of dispute against Balochistan government)

When TCC submitted the report, Balochistan was entitled as a 25% equity partner in the project, enabling it to profit additionally from the mine development and operations over and above the regular royalty and taxation payments. But later, on November 24 2010, the government of Balochistan had decided not to become a participant in the project.

(Read: Reko Diq to get Balochistan government approval: Report)

Earlier, TCC had filed a notice of dispute (NoD) to seek more time to address the Balochistan government’s concern over granting the mining license.

According to a Balochistan government official, TTC can appeal in the court against the decision; however, the Balochistan government reserved the right to refuse to grant mining license and had decided that we would not grant it.

TCC, a joint venture between Canadian mining giant Barrick Gold and the Chilean mining company Antofagasta, had earlier applied for a mining licence in February 2011 after finding that a substantial amount of minerals is present at Reko Diq.]]>
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			<title>Reko Diq to get Balochistan government approval: Report</title>
			<link>https://tribune.com.pk/story/246468/reko-diq-to-get-balochistan-government-approval-report</link>
			<comments>https://tribune.com.pk/story/246468/reko-diq-to-get-balochistan-government-approval-report#comments</comments>
			<pubDate>Tue, 06 Sep 11 15:30:02 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=246468</guid>
			<description>
				<![CDATA[Balochistan government likely to give a go ahead for the project later this month, says newspaper.]]>
			</description>
			<content:encoded>
				<![CDATA[The Reko Diq copper mining project in Pakistan, which is jointly controlled by a Chilean and Canadian mining company, is likely to receive approval from the Balochistan government later in September.

According to a report published in a Santiago-based newspaper "Diario Financiero" on Tuesday, the Balochistan government was most likely to give a go ahead for the project later this month.

Reko Diq has been delayed due to permit issues and licensing disputes.

The London-listed Antofagasta and Barrick, each hold a 37.5% percent stake in the project, while the Pakistani government owns the remaining 25 percent, under the banner of a joint venture called Tethyan Copper Company (TCC).

TCC is based in Islamabad that is a joint venture between the Canadian mining giant Barrick Gold and the Chilean mining company Antofagasta, that had applied for a mining licence in February 2011 after having found a substantial amount of minerals at its exploration site.

A company spokesman at Antofagasta, however, said that government officials in Balochistan, haven't shown any signs they are ready to decide on the project.

The two companies which control the $3.3 billion project say Reko Diq can produce 190,000 metric tons of copper and 270,000 troy ounces of gold a year during the the first five years of operation.

Earlier it was reported that the standoff between the (TCC) and the Balochistan government may be headed towards a conclusion as a Chinese firm had offered to set up a smelting and refining facility in Pakistan, something that Quetta wanted and TCC had repeatedly said it was not able to do.

The Chinese mining giant Jinchuan Group had been lobbying the government to secure a deal to set up a multi-billion dollar smelting and refining facility near the Reko Diq mines to allow for the raw ores to be refined within Pakistan since the Balochistan government had expressed its discomfort with allowing TCC to export raw ores from the province.

TCC, for its part, said that setting up such facilities next to their plant would raise their investment costs too high. The deal became a political lightening rod after politicians in Quetta began to criticise TCC for offering what they said was a bad deal.

“The multi-billion dollar project may now be split in two: the mining part may go to TCC, if the Balochistan government decides in its favour, and Jinchuan may be hired for the smelting and refining part,” said one source familiar with the situation.

TCC sources said that the company had no objection if the government hired any other party for setting up smelting and refining facilities at Rekodiq.

Under the Balochistan Mining Rules, the company claims that is entitled to 100% ownership of the mining rights based on the fact that it made the investment to discover the mineral deposits. TCC has offered the Balochistan government a 25% share in the project. Quetta was mulling its decision on the matter after the Supreme Court refused to nullify TCC’s claims.

“The Supreme Court has given 120 days to the Balochistan government to decide the fate of project with TCC keeping in view rules and regulations,” sources said. “If Quetta fails to decide within that time, the case will reopen in the Supreme Court.”]]>
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			<title>Reko Diq: AG questioned about Balochistan govt’s plans</title>
			<link>https://tribune.com.pk/story/144900/reko-diq-sc-questions-tcc-licence</link>
			<comments>https://tribune.com.pk/story/144900/reko-diq-sc-questions-tcc-licence#comments</comments>
			<pubDate>Fri, 08 Apr 11 04:10:48 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=144900</guid>
			<description>
				<![CDATA[SC directs AG Balochistan to apprise court of the provincial government’s plans for dealing with Reko Diq.]]>
			</description>
			<content:encoded>
				<![CDATA[The Supreme Court directed the Advocate General (AG) Balochistan to apprise the court of the provincial government’s plans for dealing with the Reko Diq issue after consulting the chief minister.


AG Balochistan Amanullah Kinrani informed the court that former chairman Balochistan Development Authority (BDA), Atta Muhammad Jafar amended the rules and provided undue concession to BHP-Billiton. During the course of hearing, counsel for the Tethyan Copper Company (TCC) Khalid Anwar insisted that mining rights belonged to his client. He submitted that his client was given concessions in accordance with the law since the governor had authorised the chairman BDA to sign on behalf of the Balochistan government. Anwar, referring to another case said that BHP-Billiton had paid only $100 for a mining licence. The counsel was asked to conclude his arguments.

Kinrani submitted that the 12 officials who signed the agreement were removed from service. Chief Justice Iftikhar Muhammad Chaudhary said the company had dictated the clauses included in the agreement. “The court should be appreciated for facing criticism in this case,” he remarked, heading a three-member bench. Anwar said that his client had invested millions of dollars in the project and it was illegal to deprive a company of mining rights after it made the investment.

Further hearing was adjourned till Friday (today).

 

Published in The Express Tribune, April 8th, 2011.]]>
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			<title>Reko Diq mines: Balochistan refuses out-of-court settlement</title>
			<link>https://tribune.com.pk/story/144156/reko-diq-nullifying-of-the-bhc-verdict-will-benefit-tcc</link>
			<comments>https://tribune.com.pk/story/144156/reko-diq-nullifying-of-the-bhc-verdict-will-benefit-tcc#comments</comments>
			<pubDate>Wed, 06 Apr 11 08:49:35 +0500</pubDate>
			<dc:creator>
				<![CDATA[qaiser.zulfiqar]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=144156</guid>
			<description>
				<![CDATA[Balochistan govt asks SC to finish its deliberations and rule on the matter.]]>
			</description>
			<content:encoded>
				<![CDATA[The Balochistan government has refused to pursue an out-of-court settlement with the Tethyan Copper Company (TCC) on the dispute over the Reko Diq mines and has asked the Supreme Court to finish its deliberations and rule on the matter.


Balochistan Advocate-General Amanullah Kinrani made the argument in front of a three-member Supreme Court bench hearing the case. He was responding to the suggestion by TCC counsel Fakhruddin G Ebrahim that  the case be settled out of court.

Ebrahim argued that the ruling of the Balochistan High Court, seen by some observers as favourable to the TCC, remains in effect while any settlement between Quetta and the company is being worked out.

Kinrani alleged that the TCC had not paid any fees to the Balochistan government. Justice Sair Ali, one of the members of the bench, pointed out that the non-payment of fees was a failure on the part of the provincial government to collect it. Chief Justice Iftikhar Muhammad Chaudhry, leading the bench, also pointed out that mineral rights were a provincial subject.

Kinrani then tried to argue that the contract to the TCC was awarded without the ‘permission’ of the Balochistan Chief Minister. Khalid Anwar, another lawyer for the TCC, pointed out that mining contracts are always awarded either by the president or the governor of the province, not the chief minister.

Anwar said that both provincial and federal governments were consulted before the mining contract was awarded to the Islamabad-based Tethyan Copper Company. “Verbal objections carry no weight,” he said. The TCC lawyers argued that the company had completed its exploration of the site according to their agreement with the Balochistan government and, according to section 48 of the Balochistan Mineral Rules 2002, was entitled to begin mining.

The Tethyan Copper Company is offering the Balochistan government a 25 per cent equity stake in the company in addition to a royalty fee on its revenues.

According to the company’s estimates, the federal and provincial government will put in none of the investment while being entitled to 52 per cent of the project’s cash flows.

The company’s sponsors, Barrick Gold Corporation of Canada and Antofagasta of Chile, are willing to invest $3.3 billion in Pakistan to complete the project.

The next hearing of the case will be held on Thursday (today).

Published in The Express Tribune, April 7th, 2011.]]>
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			<title>Reko Diq: BHC ruling impedes transparent deal says CJP</title>
			<link>https://tribune.com.pk/story/143396/reko-diq-sc-suggests-nullification-of-high-court-verdict</link>
			<comments>https://tribune.com.pk/story/143396/reko-diq-sc-suggests-nullification-of-high-court-verdict#comments</comments>
			<pubDate>Wed, 06 Apr 11 03:10:51 +0500</pubDate>
			<dc:creator>
				<![CDATA[qaiser.zulfiqar]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=143396</guid>
			<description>
				<![CDATA[CJP ruling can be struck down if parties agree.]]>
			</description>
			<content:encoded>
				<![CDATA[The Reko Diq project cannot be termed a joint venture in the light of the petitioners’ arguments, Chief Justice Iftikhar Muhammad Chaudhary observed on Tuesday.


Khalid Anwar, counsel for the Tethyan Copper Company (TCC) submitted before a three-member bench headed by the Chief Justice that if the project is not recognised as a joint venture, it would not be acceptable to him.

The chief justice remarked that the Balochistan High Court’s (BHC) judgment in favour of TCC is a hindrance in the deliverance of justice and if all the stakeholders agree, the court can invalidate BHC’s verdict. The Supreme Court bench hearing a suo motu case on awarding a mining licence to TCC observed that Reko Diq belongs to the people and the government of Balochistan and they have the right to award a mining licence for the project.

Anwar submitted that TCC has completed the exploration of minerals and according to section 48 of the mining rules, it is the company’s right to obtain licence of mining. Therefore, TCC should be awarded the mining licence.

The chief justice directed the government of Balochistan to make a decision based on the will of the people.

Anwar said that his client has incurred great expenditure in the search for minerals in the area which establishes its right to obtain the licence of mining. The Balochistan government had allotted the rights of mining to TCC. Fakhruddin G Ibrahim, a senior advocate and counsel for TCC sought time from the court to submit a reply after consultation with his clients.

The court adjourned the hearing till Wednesday (today).

Published in The Express Tribune, April 6th,  2011.]]>
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			<title>Security concerns: SC asks army to weigh in on Reko Diq</title>
			<link>https://tribune.com.pk/story/122535/security-concerns-sc-asks-army-to-weigh-in-on-reko-diq</link>
			<comments>https://tribune.com.pk/story/122535/security-concerns-sc-asks-army-to-weigh-in-on-reko-diq#comments</comments>
			<pubDate>Wed, 23 Feb 11 04:36:25 +0500</pubDate>
			<dc:creator>
				<![CDATA[qaiser.zulfiqar]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=122535</guid>
			<description>
				<![CDATA[SC directs DAG to seek the army’s opinion on Reko Diq project in light of national security.]]>
			</description>
			<content:encoded>
				<![CDATA[The Supreme Court on Tuesday directed the Deputy Attorney General to seek the army’s opinion on the Reko Diq project in light of national security, and inform the court on Wednesday.

A three-member bench of the apex court headed by Chief Justice Iftikhar Muhammad Chaudhary heard a number of petitions challenging the award of the contract to the Tethyan Copper Company (TCC), a Canadian consortium of Barrick Gold and Antofagasta Minerals for exploiting gold and copper in Reko Diq.

“There was no clause in the agreement on the protection of areas geographically sensitive from a defence
point of view,” the chief
justice remarked during the hearing. “National Interest and sovereignty should
figure prominently in such agreements.”

The Pakistan army had no objection to mining after a briefing on the agreement, counsel for TCC Khalid Anwar apprised the court. Chaghi is a sensitive area but 20 other companies are operating there, he said, adding that TCC has given an application for a lease licence.

“No licence will be issued until the final judgment of the apex court,” Advocate General Balochistan said, adding he had yet to receive the application.

The chief justice asked why the former governor of Balochistan relaxed regulations while awarding the contract for exploration and was informed by the counsel for BHP-Billiton Abdul Hafeez Pirzada that “the agreement was not approved by the Governor but the Balochistan government.”

Published in The Express Tribune, February 23rd, 2011.]]>
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			<title>Reko Diq petitions: Sovereignty can foil conspiracies, says SC</title>
			<link>https://tribune.com.pk/story/116758/reko-diq-petitions-sovereignty-can-foil-conspiracies-says-sc</link>
			<comments>https://tribune.com.pk/story/116758/reko-diq-petitions-sovereignty-can-foil-conspiracies-says-sc#comments</comments>
			<pubDate>Thu, 10 Feb 11 04:38:20 +0500</pubDate>
			<dc:creator>
				<![CDATA[qaiser.zulfiqar]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=116758</guid>
			<description>
				<![CDATA[CJ says Pakistan is a sovereign state fully capable of thwarting any foreign conspiracy.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistan is a sovereign state fully capable of thwarting any foreign conspiracy and until “we maintain our sovereignty, no conspiracy can touch national integrity”, Supreme Court Chief Justice Iftikhar Muhammad Chaudhry said on Wednesday while hearing petitions against the leasing of the Reko Diq copper-gold project.

The court was hearing arguments of attorneys for the Sanjrani tribe and the mining firm, BHP.

Ahmad Raza Kasuri, the counsel for the Sanjrani tribe, said that the award for exploration licences to BHP was “an attack on the country’s sovereignty”.

He said the foreign company engaged in Reko Diq mines could prove to be “just like the East India Company, establishing schools where local children can be brain-washed”.

He said: “Conspiracies are being hatched against the country’s sovereignty.”

Terming Kasuri’s outburst emotional, the chief justice said: “Don’t be emotional and talk about the East India Company. We are a sovereign state and until we will maintain our sovereignty, we can foil any foreign conspiracy.”

Expressing confidence in the honour of the people of Balochistan, the chief justice said: “They will never ask (any such company) for establishing schools, but will (surely) rely on their own resources.”

Expressing the nation’s determination to preserve national sovereignty, he said: “If we have to, we will be content on just a meal every day … but will never seek anyone’s support.”

The court asked Abdul Hafeez Pirzada, the counsel for BHP, to commence his arguments on Thursday (today) by 11.30 am.

Earlier, Dr Salahuddin Men­gal, the advocate-general of Balochistan, produced before the court the record of the Reko Diq deal. Meanwhile, the court adjourned the hearing till Thursday (today).

Published in The Express Tribune, February 10th, 2011.]]>
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			<title>Reko Diq case: SC seeks complete record of licences</title>
			<link>https://tribune.com.pk/story/116203/reko-diq-case-sc-seeks-complete-record-of-licences</link>
			<comments>https://tribune.com.pk/story/116203/reko-diq-case-sc-seeks-complete-record-of-licences#comments</comments>
			<pubDate>Wed, 09 Feb 11 05:17:30 +0500</pubDate>
			<dc:creator>
				<![CDATA[qaiser.zulfiqar]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=116203</guid>
			<description>
				<![CDATA[CJ says there is a lack of coordination between the govt and its institutions.]]>
			</description>
			<content:encoded>
				<![CDATA[The Supreme Court on Tuesday has again directed the Balochistan government to submit a complete record of the prospecting and mining licences awarded to the Tethyan Copper Company (TCC) for the Reko Diq gold and copper mines by Wednesday.

The court warned the Secretary Industries Balochistan to thoroughly examine the record before submitting it in the court. A statement given in haste may damage the career of an officer. The bench also asked Advocate-General Balochistan Dr Salahuddin Mengal for details of concessions given to TCC in violation of rules.

Chief Justice Iftikhar Muhammad Chaudhry observed that a relaxation in rules without approval of the mining committee had no legal status.

A four-member bench of the apex court comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Muhammad Sair Ali, Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday was hearing a number of petitions against awarding the contract to TCC.

Ahmad Raza Kasuri, counsel for the Sanjrani tribe, told the court that in the 1994 joint venture agreement BHP-Billiton was awarded more than one licence at a time, in violation of Article 247(3) of the Constitution. According to the rules, he said a company may obtain only one licence at a time. He said the agreement should therefore not be renewed.

“If your contention is accepted, there would be no more mining in the country. Do you want us to go back to the Stone Age?” Justice Ramday questioned the counsel. “Development projects would also suffer,” the chief justice observed.

Mengal informed the court that the Balochistan Development Authority (BDA) had not written any letter to  the mining committee for granting a relaxation in the rules, which he said was also confirmed by the Director-General Mining and Development, Balochistan. The court asked him to present the written statement as well as the notification of the 1994 joint venture agreement, but he did not have this document.

“There is a lack of coordination between the government and its institutions”, the chief justice observed. Rules may not be circumvented without the mining committee’s approval.

The court adjourned the case for Wednesday (today).

Besides the petitioners, 26 senators mainly from the JUI-F, including former minister Azam Khan Swati, Maulana Abdul Ghafoor Haidri, Dr Muhammad Ismail Buledi, Maulana Gul Naseeb, Abdul Ghafoor Qureshi, Malik Rashid Ahmed Khan, are also a party to the case.

Published in The Express Tribune, February 9th, 2011.]]>
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			<title>Reko Diq: Balochistan told to hold mining award till ruling</title>
			<link>https://tribune.com.pk/story/113957/reko-diq-balochistan-told-to-hold-mining-award-till-ruling</link>
			<comments>https://tribune.com.pk/story/113957/reko-diq-balochistan-told-to-hold-mining-award-till-ruling#comments</comments>
			<pubDate>Fri, 04 Feb 11 05:27:16 +0500</pubDate>
			<dc:creator>
				<![CDATA[qaiser.zulfiqar]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=113957</guid>
			<description>
				<![CDATA[Counsel for Sanjrani tribe likens TCC to East India Company.]]>
			</description>
			<content:encoded>
				<![CDATA[The Supreme Court of Pakistan on Thursday restrained the Balochistan government from awarding any company a mining lease in Reko Diq till the court announces its verdict in the case.

Advocate General Baloch­istan Salahuddin Mengal submitted before the four-member bench headed by Chief Justice Iftikhar Muham­mad Chaudhry that the Govern­ment of Balochistan has instructed him to categorically state that it will not grant a mining lease to any company till the court’s verdict without prejudice to their legal rights.

Petitioner Barrister Zafarullah submitted that according to Dr Samar Mubarak Mund Pakistan has the requisite expertise to mine Reko Diq, therefore foreign companies should not be granted excavation rights. “A company which has not disclosed the feasibility report cannot be expected to share its technology.”

The Chief Justice directed the counsel to argue on the legal aspects of the case.

The case should also be viewed in a historical perspective, counsel for the Sanjrani tribe, Ahmad Raza Kasuri argued. TCC is a resurrection of the East India Company.

Gold and copper reserves in Reko Diq were discovered by foreigners and they made all the investment, Justice Ramday observed.

The murder of a Chinese engineer in Balochistan was a conspiracy to sabotage the relationship between Pakistan and China but Beijing foiled the attempt, the counsel argued.

“The Balochistan Govern­ment is vested with the authority to sell or gift land belonging to the tribes without their permission,” Kasuri questioned the bench. “What rights do the tribes have in the administrative control of the province?”

The chief justice asked the counsel to present his formulations in light of the Constitution. The tribes do not constitute separate states, he observed.

The court adjourned the case till February 8.

Published in The Express Tribune, February 4th, 2011.]]>
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			<title>Reko Diq case: SC issues stay order</title>
			<link>https://tribune.com.pk/story/113401/reko-diq-case-tethyan-copper-has-private-airport-sc-told</link>
			<comments>https://tribune.com.pk/story/113401/reko-diq-case-tethyan-copper-has-private-airport-sc-told#comments</comments>
			<pubDate>Thu, 03 Feb 11 05:32:43 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=113401</guid>
			<description>
				<![CDATA[SC issues stay order and instructs Balochistan govt not to award contract till verdict is given.]]>
			</description>
			<content:encoded>
				<![CDATA[The Supreme Court (SC) on Thursday issued a stay order in Reko Diq case and directed the Balochistan government to not give the contract till verdict is issued.

Earlier, a petition the SC was informed about the planes landing on the airport in the region and concerns were conveyed regarding the provincial government's lack of knowledge with regards to the equipment being flown in.

Updated from print edition (below)

Reko Diq case: Tethyan Copper has private airport, SC told

The Tethyan Copper Company has constructed a private airport on an area spreading over seven kilometres in Balochistan, the Supreme Court was informed on Wednesday.

The Government of Balochistan is not aware of the planes landing at the airport, which is extremely dangerous for the country’s security, petitioner in the Reko Diq case, Tariq Asad argued. It is the responsibility of the Civil Aviation Authority to look into the matter, the chief justice observed.

Meanwhile hearing a case on the chairman NAB’s appointment, Justice Javed Iqbal said: “Does the president lose the prerogative to appoint Chairman National Accountability Bureau (NAB) in the absence of a consensus?”

Counsel for the federation Abdul Hafiz Pirzada argued that the president appointed Chairman NAB on the PM’s advice.

The PM’s statement to the press and the summary presented by the Attorney-General of Pakistan contradict each other, the court observed.

The Supreme Court had decided that press statements constitute sufficient evidence, provided they are not contradicted, Justice Asif Saeed Khosa observed.

It is mandatory for the PM to participate in the consultation process, he cannot send his advice through a subordinate, Justice Asif Khosa added.

According to section six of the NAB Ordinance, the opposition leader has to be consulted for the appointment of Chairman NAB. He was ignored in violation of article 48 of the Constitution. The court adjourned the hearings till today (Thursday).

Published in The Express Tribune, February 3rd, 2011.]]>
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			<title>Reko Diq case: Balochistan govt is wasting our time, says SC</title>
			<link>https://tribune.com.pk/story/112813/reko-diq-case-balochistan-govt-is-wasting-our-time-says-sc</link>
			<comments>https://tribune.com.pk/story/112813/reko-diq-case-balochistan-govt-is-wasting-our-time-says-sc#comments</comments>
			<pubDate>Wed, 02 Feb 11 05:39:53 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=112813</guid>
			<description>
				<![CDATA[Court rejects interim report into Steel Mills corruption case.]]>
			</description>
			<content:encoded>
				<![CDATA[In awarding the contract for Reko Diq, the agreement was signed before the rules were in place, contrary to international practice, Justice Khalilur Rehman Ramday observed on Tuesday during the hearing of the Reko Diq case.

Chief Justice Iftikhar Muhammad Chaudhry reprimanded the Balochistan government for not providing the detailed record and observed it is merely wasting the court’s time. He was presiding over a four-member bench of the apex court hearing the suo motu case.

“How many minerals may be extracted on a single licence? The law permits only one mineral per license,” the chief justice asked Advocate General Balochistan Salahuddin Mengal for clarification. Mengal submitted that the licence was issued for the extraction of associate minerals which are not defined in the law.

Documents show that the mining committee issued licences on the direction of the Governor Balochistan whereas the committee was autonomous and did not require a directive, Justice Ramday observed.

“The central issue in this case pertains to whether the national interest was held supreme in awarding the contract,” Justice Ghulam Rabbani observed.

“We will determine whether constitutional requirements have been complied with in this case. It is mandatory to uphold the Constitution,” the chief justice observed. “We can judge the importance of the Reko Diq project by the fact that 26 senators filed a petition to become a party to this case.”

“We would not like to halt any deal but it is the responsibility of the provincial government to sign the agreement in accordance with the law,” the chief justice said. He directed the advocate general to submit the record in the court and adjourned the hearing till Wednesday (today).

Also on Tuesday, the Supreme Court rejected the interim report submitted by the ministry of industries and production in a suo motu case on the Rs22 billion embezzlement in Pakistan Steel Mills (PSM).

“We appreciate the Supreme Court for taking suo motu notice of the corruption in Pakistan Steel Mills,” said Abdul Ghaffar Soomro, Secretary Ministry for Industries and Production when presenting the report to the four-member bench of the apex court headed by Chief Justice Ifitikhar Muhammad Chaudhry.

“Instead of showing us your appreciation, point out the culprits involved in the corruption and take action against them,” Justice Ramday replied.

The secretary told the court that the losses sustained by the PSM have exceeded Rs26 billion on account of the embezzlements.

“Then what are you doing here, go and take corrective action,” the chief justice remarked.

The chief justice directed the secretary to take up this issue seriously. Officials from the ministry and the FIA should collaborate in pinpointing corruption in the departments of PSM and the reasons for it, he added.

Giving a three-week deadline for the task, he adjourned the case for the time period.

Published in The Express Tribune, February 2nd, 2011.]]>
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			<title>Reko Diq contract language disgraceful: Justice Ramday</title>
			<link>https://tribune.com.pk/story/112287/reko-diq-contract-language-disgraceful-justice-ramday</link>
			<comments>https://tribune.com.pk/story/112287/reko-diq-contract-language-disgraceful-justice-ramday#comments</comments>
			<pubDate>Tue, 01 Feb 11 05:29:38 +0500</pubDate>
			<dc:creator>
				<![CDATA[qaiser.zulfiqar]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=112287</guid>
			<description>
				<![CDATA[Committee comprising geologists is going over feasibility report submitted by Tethyan Copper Company.]]>
			</description>
			<content:encoded>
				<![CDATA[Extremely disgraceful language has been used in the contract between foreign companies and the government, Justice Khalilur Rahman Ramday observed during the hearing of the Reko Diq case on Monday.

A committee comprising geologists is going over the feasibility report submitted by the Tethyan Copper Company (TCC) and the decision to award the contract will be taken after they have given their opinion and the ongoing investigation is complete, Advocate General Balochistan Salahuddin Mengal assured the court. He admitted that the government is not satisfied with the feasibility report.

“According to the contract, the company can direct the Balochistan Government,” Justice Ramday observed in displeasure. “We are to blame if we cannot even ask for an explanation once the contract has been awarded.”

A four-member bench of the apex court headed by Chief Justice Iftikhar Muhammad Chaudhry resumed hearing of the petitions filed by 26 senators and  (the late) Maulana Abdul Haq against awarding the contract to TCC for extraction of gold and copper from the mines.

Mengal submitted that TCC has conducted a survey over an area of six square kilometres (sq kms), however there are no facilities available to determine the ratio of gold and copper reserves in Chaghi where the mines are located. Raza Kazim, counsel for Haq, while resuming his arguments before the bench submitted that 30,000 sq kms land was given to TCC under a joint venture agreement in which the provincial government surrendered its authority. TCC sold its shares to Barrick Gold and Antofagasta Minerals and is now acting like an agent. TCC’s activities are limited to 345 sq kms.

Advocate Tariq Asad, a petitioner, submitted that it is not mentioned in the agreement that the Balochistan government is entitled to a 25 per cent share of the profit.

Prospecting licences cannot be issued for more than 10 square kilometres whereas 50 sq. kms were awarded in each of the 10 licences. The bench directed him to submit his arguments in writing on constitutional provisions and other related laws violated in the case.

Published in The Express Tribune, February 1st, 2011.]]>
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			<title>Reko Diq case: SC orders probe into licence irregularities</title>
			<link>https://tribune.com.pk/story/110463/sc-calls-for-action-on-reko-diq-licence</link>
			<comments>https://tribune.com.pk/story/110463/sc-calls-for-action-on-reko-diq-licence#comments</comments>
			<pubDate>Sat, 29 Jan 11 04:04:02 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=110463</guid>
			<description>
				<![CDATA[Balochistan didn’t get a penny out of the $60m earned by  foreign firms: AG]]>
			</description>
			<content:encoded>
				<![CDATA[Supreme Court Chief Justice Iftikhar Muhammad Chaudhry has ordered an investigation to unearth irregularities in the issuance of licences to foreign companies for exploitation of minerals in Balochistan.

Advocate General Balochistan Salahuddin Mengal apprised the court that the provincial government awarded licences to ten companies for exploration of minerals.

The first licence was issued in 1993 by the then governor. The ten companies earned $60 million in profit but they did not cede a penny to Balochistan. The licences of eight companies expired in August 1998.

The governor is not the competent authority to issue licences for exploration, the bench observed. “The country’s natural resources belong to the people,” the chief justice said.

The chief secretary has ordered an investigation to identify the officials responsible for the irregularities, the AG informed the court.

A four-member bench of the apex court headed by Justice Chaudhry and comprising Justice Ghulam Rabbani, Justice Sair Ali and Justice Khalilur Rehman Ramday was hearing petitions filed by 26 Senators challenging the Tethyan Copper Company’s contract for excavating gold and copper from the Reko Diq mines in Balochistan.

The company’s licence will expire on February 20. If the licence is not renewed, a new agreement will have to be concluded for it to mine Reko Diq, Mengal submitted.

The chief justice directed AG Balochistan to take a decision on the renewal of Tethyan Copper Company’s licence based on its feasibility report before it expires.

Raza Kazim, the counsel for the late Maulana Abdul Haq Baloch, said that according to the law, the government cannot enter into a joint venture for exploiting Reko Diq’s resources. The court adjourned the hearing of the case till July 31.

Published in The Express Tribune, January 29th,  2011.]]>
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			<title>Reko Diq contract outside the law: SC</title>
			<link>https://tribune.com.pk/story/110386/reko-diq-contract-outside-the-law-sc</link>
			<comments>https://tribune.com.pk/story/110386/reko-diq-contract-outside-the-law-sc#comments</comments>
			<pubDate>Fri, 28 Jan 11 02:37:56 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=110386</guid>
			<description>
				<![CDATA[Apex court unsatisfied with response filed by Balochistan government.]]>
			</description>
			<content:encoded>
				<![CDATA[The Supreme Court observed on Thursday that there was no law under which contracts like the one with foreign companies, like the Tethyan Copper Company (TCC), could be signed and sought details of the contract.

The observation was made by Supreme Court Chief Justice Iftikhar Muhammad Chaudhry while hearing petitions challenging the contract of the TCC in Reko Diq copper-gold deposits filed by 26 senators. The was taken up by a four-member bench, comprising Justice Muhammad Sair Ali, Justice Ghulam Rabbani and Justice Kahlilur Rehman Ramday.

The apex court also said it was unsatisfied with the response filed by the Balochistan government. During the course of hearing, the applicants’ counsel Raza Kazam urged the court to determine whether the contract was against rules and regulations or not.

“And if the contract is (found to be) against the set rules and regulations, officials who were responsible for (signing) the contract should be pointed out,” he added.

Justice Khalilur Rehman Ramday said that the contract had been awarded to the company in 1999 but questioned under which law the company had drilled to a depth of 20,000 metres.

The court instructed the provincial representatives to attend the court proceedings. Later, the hearing was adjourned till Friday (today).

Published in The Express Tribune, January 28th,  2011.]]>
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			<title>Reko Diq and budget constraints</title>
			<link>https://tribune.com.pk/story/109895/reko-diq-and-budget-constraints</link>
			<comments>https://tribune.com.pk/story/109895/reko-diq-and-budget-constraints#comments</comments>
			<pubDate>Thu, 27 Jan 11 18:27:47 +0500</pubDate>
			<dc:creator>
				<![CDATA[Dr Pervez Tahir]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=109895</guid>
			<description>
				<![CDATA[Dreams come true if there is no budget constraint.]]>
			</description>
			<content:encoded>
				<![CDATA[The two most eminent nuclear scientists of Pakistan have taken diametrically opposed positions on the future of the Reko Diq copper and gold project. One, a physicist and now a member of the planning commission, vehemently argues that Pakistanis are fully capable of completing the entire project themselves. There is no need to award the contract of mining to foreign concerns, the present contender or new ones. The other scientist, a metallurgist, says Pakistanis have no such capability. Entrust the project to them, and you have more Pakistan Railways, PIAs and Pakistan Steel Mills in the making.

The ‘we can do it’ school bases its confidence on the success of the nuclear project. Copper and gold mining is certainly not more sophisticated than that for uranium, which was carried out with unadulterated local competence. In the process, spread nearly over three decades, a corps of scientists, engineers and technologists has emerged to share and spread the know-how to other sectors. The Pakistan Atomic Energy Commission (PAEC) continues to be a model of excellence at a time when most public sector organisations have become dysfunctional. This, according to the other view, is precisely the point. The atomic project was a national endeavour with total political commitment, unaffected by changing governments. It also required detailed and patient work by devoted professionals. Such is unlikely to be the case for Reko Diq. Neither are there professionals, nor managers to handle such a large project. The federal-provincial wrangling is in addition to the angling of those ready to make a quick, fat buck on the side. It is, thus, better to engage a foreign concern.

Both views disregard a crucial issue. In the nuclear project, what economists call a budget constraint was absent. It was promised unlimited funds, in rupees and in any foreign currency denomination, no questions asked. There was no fear of the auditor general’s department, no questions from any public accounts committee of the National Assembly or the courts. Project approving authorities, like the Central Development Working Party and Economic Committee of the National Economic Council and economic-policy making bodies such as the Economic Committee of the Cabinet, did not bother it. Now, doing it ourselves means that Reko Diq will be a project under the public sector development programme. Such projects are approved on the basis of technical soundness and economic appraisal. No discussion takes place in the Planning Commission, however, on how a project will be financed. A budget constraint is imposed by the ministry of finance, guided by the macroeconomic framework it faces every year. In a crisis situation, as at present, the framework changes every quarter. With the country unable to reform its tax structure and expenditure pattern, its ability to finance a mega project of the size of Reko Diq is limited, if at all it exists, for the next several years.

Even if there are scientists who know what they are doing, engineers well-versed in the field, technicians with relevant skills and managers adept in supervising large projects in remote areas — in short, the equivalent of the Kahuta Research Laboratories/PAEC team working on the nuclear project — there will still be a serious budget constraint. Dreams come true if there is no budget constraint. The dream team that shook the Chagai Hills in the summer of 1998 was not used to working under a budget constraint. This 400-million-dollar question is not being posed.

Published in The Express Tribune, January 28th, 2011.]]>
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			<title>Reko Diq mines: SC seeks record of contract</title>
			<link>https://tribune.com.pk/story/109716/reko-diq-mines-sc-seeks-record-of-contract</link>
			<comments>https://tribune.com.pk/story/109716/reko-diq-mines-sc-seeks-record-of-contract#comments</comments>
			<pubDate>Thu, 27 Jan 11 04:26:41 +0500</pubDate>
			<dc:creator>
				<![CDATA[qaiser.zulfiqar]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=109716</guid>
			<description>
				<![CDATA[TTC bought exploration rights from another company and not the government.]]>
			</description>
			<content:encoded>
				<![CDATA[The Supreme Court on Wednesday asked for a complete record of the contracts awarded for the mining of gold and copper and details of exploration licenses issued to foreign companies for Reko Diq.

The four-member bench comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Muhammad Sair Ali, Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday, directed the chief secretary Balochistan to appear before the court for as long as the case is being heard along with the record. Former chief secretaries of the province have also been asked to attend the hearings.

“The rights to the Reko Diq mines cannot be leased out or sold by the company according to the law of the land,” Raza Kazim, counsel for Maulana Abdul Haq Baloch (late), contended in court. He said the BHP had entered into a contract for exploration 1996 and in 2006. It later sold its rights to The Tethyan Copper Company (TCC) for $260 million.

“The Reko Diq reserves are part of the nation’s wealth, which cannot be awarded to foreign companies,” the counsel argued. If the mines are leased to foreign companies, they will take 75 per cent of the net profit while the government will get only 25 per cent.

He said the Balochistan government had not produced the application of the mining company, BHP-Billiton which it had filed for the contract of the Reko Diq project, along with its reply.

The court then directed Advocate General Balochistan, Salahuddin Mengal to present BHP-Billiton’s original application for the Reko Diq contract and the record of the license awarded by the government.

The court has also sought the record of an application given by a foreign company in 1992 for obtaining a contract for the exploration and excavation of the Reko Diq mines.

Mengal told the court that he had asked the Director for Minerals to provide the documents.

Kazim said a study conducted in 1961 had revealed deposits of gold and copper in Balochistan but the government did not take steps to exploit them.

TCC’s counsel, Khalid Anwar requested the case be adjourned for a week, which the court declined. If the parties give an undertaking that they will not renew the contract, an adjournment may be granted, the Chief Justice said.

“The company is bound to obtain a valid license by February 19,” said Khalid Anwar. The Chief Justice observed that the bench would try to decide the case by then since the federal and provincial governments are awaiting the judgment.

The court has adjourned the case till today (Thursday).

Published in The Express Tribune, January 27th,  2011.]]>
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			<title>Unexplored wealth: Senators made party to Reko Diq case</title>
			<link>https://tribune.com.pk/story/109170/unexplored-wealth-senators-made-party-to-reko-diq-case</link>
			<comments>https://tribune.com.pk/story/109170/unexplored-wealth-senators-made-party-to-reko-diq-case#comments</comments>
			<pubDate>Wed, 26 Jan 11 06:06:11 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=109170</guid>
			<description>
				<![CDATA[The mining company says Pakistan has the world’s largest copper reservoirs.]]>
			</description>
			<content:encoded>
				<![CDATA[The Supreme Court of Pakistan on Tuesday accepted a constitutional petition filed by 26 senators to become a party in the Reko Diq case to restrain the government from renewing the contract of Tetyhan Copper Company (TCC) in violation of the law.

The senators claim the government is acting arbitrarily in leasing the mines to a foreign company as it is against the citizens’ fundamental rights and the national interest.

The court asked the company for details concerning the exploration and excavation of gold and copper from the Reko Diq mines in Balochistan estimated at over $260 billion.

A four-member bench of the apex court headed by Chief Justice Iftikhar Muhammad Chaudhry and comprising Justice Ghulam Rabbani, Justice Sair Ali and Justice Khalilur Rehman Ramday heard the case. TCC’s chief executive, Ger Hard said Pakistan has the world’s largest copper reservoirs, though Chile is the biggest copper-producing country in the world.

He said the company will use the latest technology for which it will train the people of Balochistan since 98 per cent of the manpower would be selected from the province. Eleven thousand people will get jobs if this project takes off. Of the 13 geologists hired by TCC, 12 belong to Balochistan.

The company has incurred a cost of $220 million till date, Hard said, adding that 30 per cent of the net profit will be invested in Balochistan. The gold and copper will be sent to China, Korea and Japan for refining.

The bench directed TCC to submit the details in writing including the names of the 13 geologists by tomorrow. The court adjourned the case till Wednesday.

Published in The Express Tribune, January 26th, 2011.]]>
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			<title>The truth about Reko Diq</title>
			<link>https://tribune.com.pk/story/109043/the-truth-about-reko-diq</link>
			<comments>https://tribune.com.pk/story/109043/the-truth-about-reko-diq#comments</comments>
			<pubDate>Wed, 26 Jan 11 04:57:48 +0500</pubDate>
			<dc:creator>
				<![CDATA[farooq.tirmizi]]>
			</dc:creator>
			<category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=109043</guid>
			<description>
				<![CDATA[The legendary wealth of Balochistan will remain buried beneath the sands of misery that haunt the Baloch people.]]>
			</description>
			<content:encoded>
				<![CDATA[How valuable is one’s wealth if it is buried underground and one has no way of getting it out? And what would one say to somebody who came along and volunteered to extract this wealth, providing all of the technical expertise and putting up the entire investment costs, and letting you keep half of the profits? Would it be fair to say that this person was indulging in exploitative behaviour? Or would we say that a fair deal was on offer?

The above scenario is not hypothetical. It is exactly what is currently going on in the case of the Reko Diq mining project in Balochistan. The Tethyan Copper Company, a joint venture between Canada's Barrick Gold and Chile's Antofagasta, has spent $220 million to explore the Reko Diq area and, having discovered a feasible reserve of minerals, is now willing to spend the further $3.3 billion it would take to extract the minerals. And yet it is being treated like a neo-imperialist villain out to pillage Pakistan's national treasures.

Here are the facts: The Balochistan government gets a 25 per cent stake in the profits of the company for doing absolutely nothing besides being lucky enough to have jurisdiction over Reko Diq. It also gets a royalty fee on every penny of revenue earned by the Tethyan Copper Company. In addition, the company will pay the full 35 per cent of its income in corporate income taxes to the federal government. When all is said and done, the provincial and federal governments walk away with 52 per cent of the net cash flows of the project, while putting up none of the investment. By what standard is that a bad deal?

Yet if one were to pay attention to all of the populist screeching emanating from every corner of the print and electronic media, and now from 19-odd senators who have filed a petition in the Supreme Court on the matter, and also from people who have absolutely no expertise in resource economics, one could be forgiven for thinking that a great crime is about to occur. The truth, however, is that the crime is being committed right now, with the people of Pakistan being used as accessories to one of the biggest highway robberies in history.

The populist frenzy currently being whipped up on television and in newspapers is no accident. You see, a field is worth almost nothing when it has no proven reserves. Yet it can suddenly become worth billions the minute it is announced that there are significant quantities of minerals buried underneath. And that is when the vultures start to circle, smelling a fortune to be made by crooked means.

Here is how it will happen: The government officials who gave away the licences to the Tethyan Copper Company before it discovered anything at Reko Diq were unable to extort any bribes when the field was worth nothing. Now that it is worth billions, however, they can either extort bribes from Tethyan or from another mining company (and at least two Chinese companies have shown interest). Yet in order to get those bribes from Tethyan, the threat of losing the contract needs to be real enough. Hence the creation of a popular hysteria to give these officials the political cover they need for their banditry.

The other option is to actually kick out Tethyan (for which the popular hysteria is still useful) and then quietly give away the contract to the company willing to offer the highest kickbacks. Either way, the national interest, in the truest sense of the word, will have been cast aside since no company in its right mind will want to do business in a country that kicks an investor out the minute the latter finds something worth mining. The legendary wealth of Balochistan will remain buried beneath the sands of misery that currently haunt the Baloch people.

But, of course, the chest-thumping politicians will have made their cut and the journalists who helped them drum up the smokescreen of patriotic fervour will have unwittingly destroyed the nation's interests. I do not know about you, but I do not like being used in this manner.

Published in The Express Tribune, January 26th, 2011.]]>
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			<title>Reko Diq and Samar Mubarakmand</title>
			<link>https://tribune.com.pk/story/108073/reko-diq-and-samar-mubarakmand</link>
			<comments>https://tribune.com.pk/story/108073/reko-diq-and-samar-mubarakmand#comments</comments>
			<pubDate>Sun, 23 Jan 11 19:16:41 +0500</pubDate>
			<dc:creator>
				<![CDATA[dr.mohammad.ali.rai]]>
			</dc:creator>
			<category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=108073</guid>
			<description>
				<![CDATA[Pakistan has been blessed with enough scientists that it can do the things it wants done.]]>
			</description>
			<content:encoded>
				<![CDATA[Of late, the Reko Diq controversy has been an issue that one wanted to get to the bottom of. The one person who is at the forefront of the debate is nuclear scientist Dr Samar Mubarakmand. I was hesitant when I emailed Dr Samar for a meeting and wondered whether my email would even get through to him — so I was pleasantly surprised when I got an immediate response.

Mazing through the relatively unending security checks in the prime minister’s secretariat, I finally wound my way to the planning commission building. Tucked away in a corner, I was ushered into Dr Samar’s office without being asked to wait for hours, shattering another oft-heard myth that one has to wait for ages if meeting someone in the prime minister’s secretariat.

Seated behind his research-papers strewn mahogany desk, Dr Samar comes off as a humble man. He put me at ease immediately, by telling me that he had cancelled all his appointments for the morning and was more than happy to answer any queries that were unsettling me.

He started off by recounting the days from his youth when, out of pure hard work and sheer genius, he was fortunate to finish his doctoral training in physics at Oxford. One notion was always supreme in his mind: He wanted to return and serve Pakistan right from the start, and this belief never faltered. Coming back, he started his own lab, which grew exponentially and ultimately resulted in Pakistan becoming a pioneer of nuclear and missile technology. He mentioned candidly that critics say that Pakistan’s missile programme is a remnant of North Korea’s missiles, but the truth is that Pakistani scientists have proven their own indigenous expertise time and again, with the unveiling of even more sophisticated and reliable defence systems than those of the North Koreans.

The Thar Coal reserves were found decades ago, but to-date no substantial progress had been made, until he stepped into the picture. He explained that the coal is too deep and not feasible to be mined and that is why they came up with a novel technique of underground combustion, whose preliminary results are going to come in the next couple of months. This whole pilot study at Thar was done using indigenous talent and expertise. He was asked whether Pakistan possessed enough expertise to mine and utilise these resources and he replied that it had already mastered techniques for mining uranium as a part of the nuclear programme and this whole business was just an extension of using the same skill-set, albeit for a different material and setting.  Whenever you have a professional doing a job, it is bound to produce results, and Pakistan has been blessed with enough scientists that it can do the things it wants done.

Published in The Express Tribune, January 24th, 2011.]]>
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			<title>Reko diq case: ‘Provinces’ right over their minerals recognised already’</title>
			<link>https://tribune.com.pk/story/107846/reko-diq-case-%e2%80%98provinces%e2%80%99-right-over-their-minerals-recognised-already%e2%80%99</link>
			<comments>https://tribune.com.pk/story/107846/reko-diq-case-%e2%80%98provinces%e2%80%99-right-over-their-minerals-recognised-already%e2%80%99#comments</comments>
			<pubDate>Sun, 23 Jan 11 07:27:04 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=107846</guid>
			<description>
				<![CDATA[Balochistan government submits reply to the Supreme Court of Pakistan in the Reko Diq case.]]>
			</description>
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				<![CDATA[The Balochistan government has submitted its reply to the Supreme Court of Pakistan in the Reko Diq case and pleaded that the Economic Coordination Council (ECC) recognised the province’s right on mining its minerals in a meeting on December 9, 2010.

The meeting concluded that the mining agreement will not be executed without the consent of the Balochistan government, the reply said, adding that the ECC also considered relevant proposals sent by the Planning Commission (PC).

Meanwhile, Dr Samar Mubarakmand was invited to a meeting to review the proposals by the ECC. The steps recommended by the ECC meeting were a ratification of the decision taken in December  2009 by the Balochistan government, including its resolve to execute the project on its own.

Published in The Express Tribune, January 23rd,  2011.]]>
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			<title>Veritable goldmine: Chaghai’s less-known mineral riches</title>
			<link>https://tribune.com.pk/story/106359/veritable-goldmine-chaghai%e2%80%99s-less-known-mineral-riches</link>
			<comments>https://tribune.com.pk/story/106359/veritable-goldmine-chaghai%e2%80%99s-less-known-mineral-riches#comments</comments>
			<pubDate>Thu, 20 Jan 11 04:38:10 +0500</pubDate>
			<dc:creator>
				<![CDATA[adil.jawad]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=106359</guid>
			<description>
				<![CDATA[While Reko Diq hogs media limelight, other reserves fail to attract notice.]]>
			</description>
			<content:encoded>
				<![CDATA[Chaghai district of Balochistan has huge deposits of gold, copper and other precious metals, experts say.

Shahid Noor Khan, a geologist at the Geological Survey of Pakistan, had discovered gold and copper deposits in the area in 1962.

Apart from Reko Diq and Saindak, eight more reserves were also discovered in the district with the help of international geologists. However, initial work has yet not been started.

Chaghai is the largest district of Pakistan spread over an area of over 700 kilometres – equal to the entire landmass of Khyber-Pakhtunkhwa province. The district includes plains, deserts and mountain ranges. Its population is about 150,000. Chaghai shares borders with Afghanistan and Iran. Baloch tribes straddle both sides of the border.

Geologist Khan’s discovery was not given proper attention by government authorities. However, later the government hired UN experts, who identified 10 gold and copper reserves. The Resource Development Corporation was established to exploit minerals in Saindak. In the 1990s an agreement was signed with a Chinese firm for the mining and processing of minerals there. Another contract was signed in 1993 for the exploration and pre-mining feasibility report and other technical works. According to geologists, the other reserves include Siah Chang reserves, spread over 3,000,000 square metres, Kabul Koh reserves, covering an area of 5,500,000 square metres, Ziarat Pir Sultan reserves over 16,200,000 squrare meters, OMI reserves, Gatori reserves, Cangord, Missi, Darban Chah and Max G White.

UN geologist Dr RH Sletto discovered all these reserves and informed the Pakistan government that feasibility studies can lead to acquisition of gold, copper and other precious metals from these reserves on a large scale.

According to experts, if Pakistan focuses on the development of infrastructure, technical expertise and manpower, it can get precious metals from these places for hundreds of years.

Published in The Express Tribune, January 20th,  2011.]]>
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			<title>Case study: Afghans cut a better deal on copper deposits</title>
			<link>https://tribune.com.pk/story/106442/case-study-afghans-cut-a-better-deal-on-copper-deposits</link>
			<comments>https://tribune.com.pk/story/106442/case-study-afghans-cut-a-better-deal-on-copper-deposits#comments</comments>
			<pubDate>Thu, 20 Jan 11 02:57:22 +0500</pubDate>
			<dc:creator>
				<![CDATA[azmat.malik]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=106442</guid>
			<description>
				<![CDATA[Unlike the Reko Diq case, Kabul made the Chinese contractor accept all its terms.]]>
			</description>
			<content:encoded>
				<![CDATA[War-torn Afghanistan cut a much better deal with a Chinese company to exploit its copper reserves than what its neighbour Pakistan could manage to pull off with respect to the Reko Diq copper-and-gold reserves.

Afghanistan floated international tenders for Aynak copper mine adjacent to Balochistan which attracted bids from 200 large companies. China Metallurgical Group Corporation eventually clinched the deal. The agreement stipulated that the refining process be carried out in Afghanistan.

The value of the agreement Kabul concluded with the Chinese company was $2.9 billion. The Afghan government set the rules of engagement when signing the agreement despite the bad law and order situation in the country. It made the Chinese firm accept all the terms to protect Afghanistan’s national interest.

On the other hand, the Balochistan government did not invite any international tenders for the high-value gold reserves nor did it demand a higher share. Instead, it agreed to all the conditions set forth by the foreign company and kept the deal under wraps.

The Afghan government invited tenders for its copper reserves in 2007 and the Chinese firm secured the deal in 2008 under which 240 million tons of unexploited copper deposits were given to it on a 30-year lease. The Chinese firm paid $880 million to the Afghan government upfront.

The conditions of the agreement included details such as how many Chinese and Afghan workers will be employed on the project. The Chinese firm has started work on the project in July last year.

A report issued in 2009 stated that only 70 Chinese engineers were working alongside 3,000 Afghan miners. The agreement clarified that the Afghan government will maintain a strict monitoring system on all exploration, mining and refining work.

According to a report, the foreign firm has been mining in Reko Diq for the last two years. The reserves of Reko Diq span over an area of 300 to 350 kilometres. Tethyan company has only explored an area of seven to eight kilometres. According to the report, the agreements made by the company in other countries are also being reviewed. It has emerged that there are big differences between the set of conditions agreed to in the contracts with other countries and the one concluded with Pakistan.

Published in The Express Tribune, January 20th,  2011.]]>
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			<title>Silence over Reko Diq deal: Federal, Balochistan govts rebuked</title>
			<link>https://tribune.com.pk/story/105011/govt-not-taking-reko-diq-case-seriously-cj</link>
			<comments>https://tribune.com.pk/story/105011/govt-not-taking-reko-diq-case-seriously-cj#comments</comments>
			<pubDate>Tue, 18 Jan 11 02:15:00 +0500</pubDate>
			<dc:creator>
				<![CDATA[qaiser.zulfiqar]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=105011</guid>
			<description>
				<![CDATA[Supreme Court wonders why Islamabad and Quetta not answering allegations over the lease deal.]]>
			</description>
			<content:encoded>
				<![CDATA[The Supreme Court reprimanded the federal and provincial governments on Monday for not responding to allegations related to the lease of Reko Diq mines to a foreign firm for extracting gold and copper in Balochistan.

Chief Justice Iftikhar Muhammad Chaudhry presided over the three-member bench, comprising Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday.

“Why is the government not taking the issue seriously when the whole world is tuned in to the case?” asked the chief justice.

“The Balochistan government was sidelined when the Tethyan Copper Company (TCC) was awarded the contract,” petitioner Tariq Asad said. He added that if Pakistan were to take the initiative in exploiting its natural resources, the economy would really take off.

“The reserves of gold and copper belong to the nation but the mines were leased to TCC for it to extract the precious metals and export them for value addition in return for nominal royalties,” Tariq submitted before the bench.

The court issued a contempt of court notice to TCC, acting on the application of Watan Party leader, Barrister Zafarullah Khan. He is one of the petitioners in the case.

He contended that since the company is facing trial and the matter is sub judice, the company is trying to influence the court by publishing advertisements in newspapers. The company’s initiative is equal to contempt of court.

“The court is invested with the final authority to decide the case. The bench cannot be influenced by these means,” observed the chief justice. He issued TCC a show-cause notice. The company is to explain its stance in court on January 19.

The nation would like this case to be decided as quickly as possible, the chief justice remarked. He queried the deputy attorney general on the governments’ response. When he could not satisfy the court, the CJ directed the federal and provincial governments to submit their replies.

The company is prepared to explain its position before the bench, said TCC’s counsel, Abdul Hafiz Pirzada. It did not conceal information when the case was being heard by the Balochistan High Court.

The case has been adjourned till January 25.

Published in The Express Tribune, January 18th,  2011.]]>
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			<title>Analysis: Reko Diq, contracting future dependence on foreign help</title>
			<link>https://tribune.com.pk/story/104883/analysis-reko-diq-contracting-future-dependence-on-foreign-help</link>
			<comments>https://tribune.com.pk/story/104883/analysis-reko-diq-contracting-future-dependence-on-foreign-help#comments</comments>
			<pubDate>Mon, 17 Jan 11 02:36:43 +0500</pubDate>
			<dc:creator>
				<![CDATA[gulraiz.khan]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=104883</guid>
			<description>
				<![CDATA[If the presence of REEs is verified, they must be taken into consideration when signing the mining contract.]]>
			</description>
			<content:encoded>
				<![CDATA[Most of the impassioned debate on Reko Diq, including the ongoing hearings in the Supreme Court of Pakistan, has focused on the copper and gold deposits in the region.

But what has been essentially missing from the public discourse, and the reported Supreme Court hearings, is the case of associated minerals in the regions, specifically the rare earth elements (REE) that are becoming increasingly important globally due to their use in advanced defense and commercial production technology.

To dispel any knee-jerk reaction, REEs are not physically rare. A US Geological Survey publication calls REEs “a historical misnomer.” While the elements are abundant in the earth’s crust, they “have very little tendency to become concentrated in exploitable ore deposits. Therefore, most of the world’s supply of REE comes from only a handful of sources.” At present, China mines and refines 97 per cent of the global REE production, even though it has only 36 per cent of the world’s proven reserves.

Do we have exploitable concentrations of REEs in Reko Diq? The feasibility studies by the exploratory company Tethyan Copper Company Pakistan (Pvt) Limited (TCC) say it’s negligible. I wouldn’t discredit it outright but the inquisitive in me would like some more information.

How is negligible quantified by the TCC? Is it so little that we should stop bothering about them entirely? If not, have they been valued? What estimates has the company used for their valuation, like they have done for copper and gold? Will they also be exported unrefined or is there any effort to transfer refining technologies to Pakistan over the course of the contract?

Of course, the answers to these questions have to be verified by independent, secondary or multiple consultants, preferably from competitor mining companies. That would cost time and money so is it really worth the trouble?

I’d conjecture yes, because the REEs are becoming increasingly important for the production of green technologies. Not only is global demand for them expected to rise exponentially as the world switches to more sustainable energy production, if we have any aspiration of being a country that is able to power and provide for its own 180 million plus population sustainably, we will need REEs in the near future.

From generators for wind turbines to batteries for hybrid vehicles, REEs will be instrumental in the post-petrochemical world. Meanwhile, demand for rare-earth metals is likely to increase between 10 and 20 per cent each year, says a New York Times article from 2009, adding that China’s progressive curbs on their exports is pushing Western suppliers to look for alternative sources for REEs. It might therefore be worth making an investment in developing the capacity to mine and refine them ourselves.

Does this have any bearing on the Reko Diq case? It must, because if the presence of REEs is verified by an independent consultant, we need to take them into consideration when signing the mining contract, whichever firm it may be with. They cannot be dismissed as impurities in unrefined gold and copper.

And this brings us to the larger issue of why it is important to not simply export unrefined copper and gold for the next 56 years as proposed by the TCC. We need to build up the capacity to refine our own minerals, be it copper, gold or REEs. It will take time, no doubt, but technology is a great equaliser and leap-frogging is the promise that developed world has made to developing countries to make up for historical injustice.

Some may dismiss the entire REE argument as outlandish and populist. But it gives me enough reason to argue that transfer of refining technologies must be a component of the mining contract, especially if it is signed for a period as long as 60 years. Pakistan may be backward and in dire need of foreign expertise crutches at present, but that’s no reason to sign ourselves into being so in the future.

Published in The Express Tribune, January 17th, 2011.]]>
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			<title>Analysis: What is at stake in Reko Diq?</title>
			<link>https://tribune.com.pk/story/104578/analysis-what-is-at-stake-in-reko-diq</link>
			<comments>https://tribune.com.pk/story/104578/analysis-what-is-at-stake-in-reko-diq#comments</comments>
			<pubDate>Sun, 16 Jan 11 07:15:17 +0500</pubDate>
			<dc:creator>
				<![CDATA[gulraiz.khan]]>
			</dc:creator>
			<category><![CDATA[Balochistan]]></category><category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=104578</guid>
			<description>
				<![CDATA[Nothing is lost at the moment because the mining contract has not yet been awarded.]]>
			</description>
			<content:encoded>
				<![CDATA[As the Reko Diq case unfolds in the Supreme Court of Pakistan and the media, there is a tangible fear that the short-sightedness of powers that be will squander an opportunity that could spell an economic turnaround for the country.

The project has come to the limelight because the exploration contract awarded by the federal government back in 1993 will expire in February 2011. This  prompted questions about the prospects of mining mineral deposits in the region.

A Canadian and Chilean joint venture, the Tethyan Copper Company Pakistan (Pvt) Limited (TCC), that holds an exploration licence in the region has furnished public discourse with estimates of gold and copper deposits.

Based on their technical and feasibility studies, on which they claim to have spent over $220 million, they estimate the value of the deposits to be around $260 billion. This valuation is based on their long-term estimates of gold and copper prices in the international market.

At the same time, the company has expressed interest in mining and extracting the copper and gold deposits that they themselves have evaluated. To this end, they claim an investment of $3.3 billion will be required whereby unrefined gold and copper deposits will be siphoned from the mines to Gwadar through an underground pipeline and shipped to smelters around the world for refining.

Several questions have been raised in this regard for example the veracity of the company’s estimates of the gold and copper deposits, the sensibility in exporting unrefined gold and copper instead of value-added refined ores, and the opaqueness of the project characterised by the underground pipeline that would transfer unrefined liquid ores from the project site to Gwadar for export.  Of course, the government is under no legal obligation to award the mining contract to TCC once their exploration contract expires. However, it does seem to be in a rush to award the mining contract to whoever comes along first.

For starters, it makes rational sense to verify the feasibility studies and the estimates provided by TTC by an independent, international consultant, not least because the company that has provided the estimates wants to mine the deposits itself. Secondary or multiple verification of feasibility studies is a fairly standard process that ensures transparency in the project.

Secondly, the imperative for exporting unrefined ores for a period of 56 years must be questioned. While Pakistan may not be a highly developed country, there exist smelters elsewhere in the country, eg in Saindak, that are refining copper. Therefore, it is not unfathomable that the mining company be obliged, under contract, to refine the deposits in Pakistan before exporting.

Thirdly, the underground pipeline that will transport the unrefined liquid ores to Gwadar for export is not only superfluous but also raises questions about the transparency of the project. Is there a built-in mechanism to verify the contents that are eventually shipped from Gwadar? Do we know for sure that only copper or gold will be extracted from the deposits since that is what we will be paid for? What about the presence, albeit in limited quantities, of uranium and rare earth elements, that are found in unrefined deposits?

Nothing is lost at the moment because the mining contract has not yet been awarded. We have the opportunity to be thorough and make sure that foreign companies are not gaining a disproportionate advantage due to our underdevelopment. Invariably we will need foreign assistance to be able to mine our mineral wealth but transfer of mining and refining technologies must be a built-in mechanism of any deal that goes through. At the end, the benefits must proportionately accrue to Pakistan, not just foreign investors.

Published in The Express Tribune, January 16th, 2011.]]>
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			<title>Reko Diq mines: Consultants for scrutiny of feasibility urged</title>
			<link>https://tribune.com.pk/story/104070/reko-diq-mines-consultants-for-scrutiny-of-feasibility-urged</link>
			<comments>https://tribune.com.pk/story/104070/reko-diq-mines-consultants-for-scrutiny-of-feasibility-urged#comments</comments>
			<pubDate>Sat, 15 Jan 11 03:08:56 +0500</pubDate>
			<dc:creator>
				<![CDATA[adil.jawad]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=104070</guid>
			<description>
				<![CDATA[Internationally acclaimed geologist calls for hiring services of international consultants to scrutinise feasibility.]]>
			</description>
			<content:encoded>
				<![CDATA[Internationally acclaimed geologist and former head of Resource Development Corporation (RDC) Dr Sabihuddin Bilgrami has called for hiring the services of international consultants to scrutinise the feasibility report prepared by Tethyan Copper Company (TCC) concerning the Reko Diq copper-gold project.

He says that Pakistan lacks experts capable of undertaking large-scale mining, processing and refining jobs locally but through the Reko Diq project, “we could produce a crop of experts”.

In a special interview with the Daily Express, he said mining technology is now pretty advanced. There was a time when mines became workable with 30 to 40 per cent content, but now mines with just one or even half a per cent mineral content are being refined. It is imperative to hire people with expertise in latest mining techniques.

Dr Bilgirami, who earned his degrees in geology from Harvard and Manchester universities, said Reko Diq is not an ordinary project because investment estimates for its development are being put at two to three billion dollars. However, the country’s economy cannot afford making this huge investment on the scheme.

He said the solution to this problem is that the federal and provincial governments hire international firms of good repute. They should be tasked to look closely at the feasibility report prepared by TCC, the drilling done so far and the minerals analysis made. The consultants should tell us to what extent the estimates made by TCC are correct and which parts of the sites should be worked on.

He said in light of this report, an agreement should be signed with TCC or any other company to protect the country’s interest.

Published in The Express Tribune, January 15th,  2011.]]>
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			<title>The Reko Diq affair</title>
			<link>https://tribune.com.pk/story/103820/the-reko-diq-affair</link>
			<comments>https://tribune.com.pk/story/103820/the-reko-diq-affair#comments</comments>
			<pubDate>Fri, 14 Jan 11 17:27:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=103820</guid>
			<description>
				<![CDATA[TTC says extraction takes away only 10 per cent from 'value chain’.]]>
			</description>
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				<![CDATA[Since November last year, the Supreme Court of Pakistan is hearing a case in respect of a mining concession given to a foreign firm to dig copper and gold in the strategically sensitive area of Chaghai in Balochistan. That the contract was signed under the Musharraf government complicates the issue. The Tethyan Copper Company (TCC) was allowed a 75 per cent share in the profits of the project, which began to seem excessive after the exit of the Musharraf government. Also contested is the estimate of the deposits — some say Reko Diq is the largest such deposit in the world — and of the process of extraction which the companies backing the TCC plan to carry out abroad.

The honourable court will also adjudicate the clashing claims of how value-added the extraction is: the TTC says extraction takes away only 10 per cent from the ‘value chain’; the Balochistan government and its advisers claim a colossally larger margin. The Reko Diq mine is expected to yield 10 billion kilogrammes of copper and 368 million grams of gold over the 50-60 year lifespan of the project. But people who think the mine is a crucial hinge to the future of the province pitch the deposits at a much larger scale. Contestants include competing foreign firms, the government of Balochistan and the board of experts it has set up to work with the foreign company, which has already spent millions of dollars on the start-up of the project.

The chief minister of Balochistan is justified in feeling short-changed when he hears Pakistani experts say that his province would gain more by getting the TTC to surrender on the grounds that the Supreme Court is currently examining the deal. Former finance minister Shaukat Tareen, who was the first to raise his voice over the ‘deal’ given to the TCC by the Musharraf government, is on record as saying: “I think we have sold our future. Any government, anywhere in the world, can renegotiate such contracts on the basis of national interest, and we will do the same. If we are able to export processed metal, we can fetch up to $500 billion instead of $40 billion under the existing agreement.”

In December last year, the province’s chief minister announced that the agreement had been terminated in the interest of the people of the province. He said: “Local demands and needs were not taken into account when the initial agreements were signed.” He thereafter proceeded to acquire the services of Samar Mubarakmand, the Pakistani nuclear scientist who was in charge of testing Pakistan’s nuclear device in the same area in 1998, to head the board of governors overseeing the project, its other members being the secretaries of finance, industries and mines and mineral development, the president of the Balochistan Mine Owners' Association and the project's managing director.

The TCC has eight other projects in Pakistan and can raise the $3.3 billion required to develop Reko Diq. It has already offered an improvement of terms in the contract to the Balochistan chief minister, but it hopes to clear matters up at the Supreme Court, which will look at the case with impartiality. Exaggeration is one element to look into, especially when nationalism gets attached to natural resources, as it has in Balochistan and, in the case of Assam, in India. The other element to analyse closely is the claimed ‘local expertise’ of extraction and the ability of Pakistan to attract the capital needed for the project. The element of risk in Balochistan is high and capital markets weigh this risk with permissible caution.

Not to be ignored also is the reputation of the governments in Pakistan to run large and expensive projects with transparency. The Thar Coal Project was put on the backburner after the ‘officials’ handling the deal with a Chinese firm simply did not have the expertise to adequately estimate its overall running cost. Over-valuation is not an unknown factor in the region. The Caspian Region in our neighbourhood suffered from it and was left holding the bag after foreign firms realised they had exaggerated its natural resources. Our reputable and dispassionate Supreme Court will definitely help resolve this issue before the case goes to international tribunals.

Published in The Express Tribune, January 15th,  2011.]]>
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			<title>Transparency issue: Tareen assails Reko Diq deal</title>
			<link>https://tribune.com.pk/story/103594/transparency-issue-tareen-assails-reko-diq-deal</link>
			<comments>https://tribune.com.pk/story/103594/transparency-issue-tareen-assails-reko-diq-deal#comments</comments>
			<pubDate>Fri, 14 Jan 11 02:39:26 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=103594</guid>
			<description>
				<![CDATA[Former finance minister says it was unfortunate that the Reko Diq deal wasn't transparent, SC should intervene.]]>
			</description>
			<content:encoded>
				<![CDATA[Former finance minister Shaukat Tareen has said that it was unfortunate that the Reko Diq deal wasn’t transparent. In a special interview with Daily Express he said that Reko Diq has one of the largest reserves of gold and copper in the world. He said that the Supreme Court had to intervene in the matter because the agreements were not transparent. Shaukat Tareen said that the element of transparency is always maintained when concluding agreements of national interest. He said that as the matter is before the apex court, this project could get delayed. He added that international investors were getting a negative impression about Pakistan because of this.

He said that the steps being

taken now by the provincial government, to make the agreement transparent, should have been taken when the agreement was being finalised. He said that if the country sells the raw mineral reserves it will get 40 billion dollars in 30 years while if they were to do the refining in Pakistan the income from the project will be seven to eight times of this figure.

Some experts estimate the value of the Reko Diq reserves in excess of 500 billion dollars. He said that there are laws and regulations in Pakistan but conflicts surface because they are not implemented.

The former finance minister said that an investment of three billion dollars is required for the execution of the project, which can be completed with the help of foreign companies only. However, rather than selling the raw material, the contracting company should be required to refine gold, copper and other metals within Pakistan. The refined minerals can then be sold so that maximum income is generated.

Published in The Express Tribune, January 14th, 2011.]]>
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			<title>Reko Diq deal: SC to conduct daily hearings from Feb 11</title>
			<link>https://tribune.com.pk/story/103199/pakistan-can-mine-reko-diq-itself-scientist-tells-sc</link>
			<comments>https://tribune.com.pk/story/103199/pakistan-can-mine-reko-diq-itself-scientist-tells-sc#comments</comments>
			<pubDate>Fri, 14 Jan 11 02:10:58 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=103199</guid>
			<description>
				<![CDATA[If contract renewed, Pakistan to incur colossal losses, apex court told.]]>
			</description>
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				<![CDATA[The Supreme Court sought on Thursday replies from all respondents in the Reko Diq case and decided to conduct a daily hearing, starting from February 11.

Raza Kazim, the counsel for Abdul Haq Baloch, one of the petitioners, submitted a copy of the 101-page agreement reached between the government and the TCC to the three-member bench, headed by Chief Justice Iftikhar Muhammad Chaudhry.

Pakistan is likely to incur huge losses if the government signs the 30-year agreement with the company in February, he informed the bench. The DG Minerals, ministry of petroleum, has already signed the contract in acceptance of the company’s terms and conditions. Members of the federal and provincial governments have yet to sign the agreement.

The new agreement is to be renewed by the government on expiry of the previous contract on February 11. The project manager of TCC informed the court that his company plans to invest another $3.5 million whereas $460 million have already been invested in Reko Diq.

He apprised the court that his company is paying 25 per cent of the net profit to the government of Balochistan. He termed the copy presented to the bench by Kazim a forgery.

The agreement is a renewal of the previous one and in conformity with the mining rules of Balochistan. He said the terms of the agreement are not being kept secret.

Kazim contended that according to the 18th amendment, Balochistan enjoys sole rights over its natural resources, the federation is, therefore, interfering in the matter. He said he has yet to be provided the copy of the federation’s response.

The court has adjourned till January 17.

Published in The Express Tribune, January 14th,  2011.]]>
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			<title>Reko Diq mines: Pakistan can earn $2b a year, scientist tells court</title>
			<link>https://tribune.com.pk/story/103120/reko-diq-mines-pakistan-can-earn-2b-a-year-scientist-tells-court</link>
			<comments>https://tribune.com.pk/story/103120/reko-diq-mines-pakistan-can-earn-2b-a-year-scientist-tells-court#comments</comments>
			<pubDate>Thu, 13 Jan 11 02:32:51 +0500</pubDate>
			<dc:creator>
				<![CDATA[qaiser.zulfiqar]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=103120</guid>
			<description>
				<![CDATA[If a foreign company is awarded the contract, Pakistan will only get $160 million in royalties.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistan will earn $2 billion a year if it were to mine and refine gold and bronze from Reko Diq, whereas if a foreign company is awarded the contract, it will only get $160 million in royalties.

Renowned nuclear scientist Dr Samar Mubarikmund, Chairman of the Board of Governors of Reko Diq and member Planning Commission, said this to the Supreme Court during the course of hearing of a suo motu case.

A three-member bench, headed by Chief Justice Iftikhar Muhammad Chaudhry and comprising Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday, heard the case. Dr Mubarikmund informed the apex court that a foreign company, Tethyan Copper Company (TCC), has been awarded the lease of an area spreading over 400 square kilometres for mining.

It has discovered reserves  worth $104 billion to-date in an area of six to seven square kilometres. If it were to exploit all the reserves, they would yield precious metals worth trillions of dollars. He said these facts were taken from the feasibility report on Reko Diq, comprising thousands of pages.

Pakistan has the requisite expertise for extracting and refining gold and bronze from the Reko Diq mines. It is just the 0.02 per cent uranium which is difficult to exploit. TCC wants to export the gold and bronze in liquid form, he added.

At present Balochistan is receiving $160 million whereas it can earn $2 billion if Pakistan were to extract the metals and export them after value addition. He said the money would change the fate of Balochistan.

TCC’s economic advisor, Dr Zubair informed the court that his company, the fifth largest in the world, will invest $3 billion in Pakistan.

Despite the scarcity of investment opportunities in Pakistan, TCC has invested $406 million to-date, the benefits from which have devolved to the people of Balochistan, he said.

“Do not condemn the government; Pakistan is an independent country,” the chief justice remarked.

DG Ministry of Petroleum and Natural Resources, Irshad Ali apprised the court that former premier Shaukat Aziz had constituted a committee comprising five federal secretaries to review the terms and conditions of the agreement with the company on November 3, 2007. The deal was shelved however because the government wanted a five per cent royalty while the company was willing to offer it two per cent.

If the company is to export the metals in liquid form how will the quantity of the gold and bronze extracted be determined along with the cost, questioned Justice Ramday. The quantity of precious metals in Reko Diq is on record. If there is an increase in production, all the parties will get an equal share. The court later adjourned the hearing of the case till today (Thursday).

Published in The Express Tribune January 13th,  2011.]]>
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			<title>Reko Diq: Pakistan risks squandering billions in questionable deal</title>
			<link>https://tribune.com.pk/story/102611/reko-diq-pakistan-risks-squandering-billions-in-questionable-deal</link>
			<comments>https://tribune.com.pk/story/102611/reko-diq-pakistan-risks-squandering-billions-in-questionable-deal#comments</comments>
			<pubDate>Wed, 12 Jan 11 02:50:47 +0500</pubDate>
			<dc:creator>
				<![CDATA[adil.jawad]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=102611</guid>
			<description>
				<![CDATA[Multi-billion-dollar project placed at the mercy of consortium companies who may walk away with its riches.]]>
			</description>
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				<![CDATA[In what is being described as the most unfair business deal of the decade, the multi-billion-dollar Reko Diq copper-and-gold project has been placed at the mercy of a consortium of companies who may walk away with its riches, robbing the country of a golden opportunity to lift itself out of its growing external debt.

The consortium will take away  75 per cent of the income while the Balochistan government will get a paltry 25 per cent of share from the project as part of the terms of agreement.

Geologists have estimated that Reko Diq contains mineral deposits worth $500 billion and if the authorities did not take action immediately, this golden opportunity of turning around Pakistan’s fate will be lost.

Preparations are believed to be under way to sign agreements for mining and excavation with a consortium of foreign companies without any effort being made to estimate the actual worth of the vast gold and copper reserves found in the Chaghi district of Balochistan. According to  geologists the actual worth of the reserves can be upwards of $500 billion. Economists say that the reserves are not only a solution to the nation’s economic woes, but can also help wipe out Pakistan’s debt.

Geologists associated with the Geological Survey of Pakistan had discovered huge reserves of gold and copper in Chaghi and adjoining areas in 1978-79.

After this discovery, international consultants of repute were commissioned to prepare feasibility studies about Saindak under the supervision of the Resource Development Corporation. They included Mountains Estates Enterprises (USA), Cel Trust Engineering (UK), Oto Kumpo (Finland), RTB Bor (Yugoslavia).

But after the Saindak study, instead of appointing international consultants for assessing the value and quantum of Reko Diq reserves, the Balochistan government entered into an agreement in 1993 with an Australian company having vast investments in oil and gas sectors under which 75 per cent of the reserves of Reko Diq were to be given to  BHP Billiton, while 25 per cent share was to go to the government of Pakistan.

The drilling work for the feasibility study report was started under this agreement but in 2006,  BHP Billiton suddenly sold its shares to Canadian company Barrick Gold which, in turn, sold half of its 75 per cent shares in Tethyan Copper Company (TCC) to Chile’s firm Antofagasta. This means that now Balochistan is owner of 25 per cent share in TCC while Barrick Gold and Antofagasta hold 37.5 per cent share each.

The TCC completed its feasibility report last year and claimed that the feasibility study and social and environmental analysis cost it $250 million while the overall estimate of the project – $3.3 billion – will be spent in the next 56 years.

According to geologists who played important role in the Saindak project, foreign companies make such agreements with developing companies to take advantage of their lack of funds and earn hefty profits by purchasing mineral reserves at throwaway prices.

They said that it was strange that the successful process of Saindak was not replicated in this case.

Analysts said that in Saindak, the drilling was done 91,000 feet deep while the cost was just $20 million while according to the TCC website, drilling on this project was only done till a depth of 21,000 feet.

They also contest the company’s claim about overall cost ($3.3 billion), calling it an exaggerated figure. They said it was not too late to get a consultancy firm hired to conduct a standard study. The services of Pakistani geologists can also be utilized for supervising the drilling work. According to the experts, the Balochistan government is not bound to assign the contract of mining and processing to the same firm which was given the licence for exploration.

Geology expert Dr Suhail M Qureshi said that Deko Riq reserves were being sold at  very cheap prices. He said that according to the information received, the average price of gold and copper reserves is agreed to be $4,000 per ton which is too low. He said that an area of 25 square kilometers has been given on a 30 year lease.

Former finance minister Shaukat Tareen said that such conflicts can be averted if transparent procedures are adopted and national interest remains uppermost when concluding agreements for natural resources. He said that all the steps that the government of Balochistan is taking now to make the deal transparent should have been taken much earlier.

He said that according to his information, Reko Diq has the fifth largest reserves of gold and copper in the world and under the raw material agreement Pakistan will get $40 billion in 30 years. He said that if Pakistan makes the agreement for the refining process done in Pakistan, the price and income may increase by 7 to 8 times. He said that according to a safe estimate, the income can be raised to $500 billion.

According to Tethyan Copper Company spokesperson Ms Samia Ali Shah (Manager Corporate Communications) the total investment of the present co-owners of TCC is about $435 million, including the cost of acquisition.

Since 2006, about $220 million has been spent on exploration and technical studies. For mining and processing plant another “$3.3 billion will be required”

According to Ms Shah, once the Supreme Court hands down its verdict and all the negotiations are completed and necessary agreements signed, it will take about four years to build the infrastructure required to make the mine operational.

This means that any income from Deko Riq is not possible before 2015.

She confirmed that TCC is working under the same terms and conditions that BHP and government of Balochistan agreed upon in 1993.

She said that so far the feasibility study and environmental and social impact assessment reports have been completed and these are important milestones in the mining cycle which establish whether the project is financially and technically viable.

Published in The Express Tribune, January 12th, 2011.]]>
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			<title>Chinese dragon: Counterproposal submitted for Reko Diq project</title>
			<link>https://tribune.com.pk/story/90678/chinese-dragon-counterproposal-submitted-for-reko-diq-project</link>
			<comments>https://tribune.com.pk/story/90678/chinese-dragon-counterproposal-submitted-for-reko-diq-project#comments</comments>
			<pubDate>Wed, 15 Dec 10 22:18:06 +0500</pubDate>
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			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Balochistan govt may ink agreement, say officials. Chinese government interested in making Gwadar Port functional.]]>
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				<![CDATA[The Metallurgical Corporation of China (MCC) has submitted a counter proposal for handing over the Reko Diq contract, Balochistan government officials said on Wednesday.

It would give the provincial government a 25 per cent share in the income, besides giving it a five per cent royalty, officials told APP.

MCC also offered that it would construct roads, besides setting up a power plant at the mine site,” officials said. Officials said the Balochistan government could ink an agreement with the Chinese company if it promised transfer of technology, besides giving the provincial government a decision-making member in the board of directors.

Tethyan Copper Company recently completed a feasibility report in Reko Diq. It will ask for a mining licence after the feasibility study is approved by the provincial government. The area holds reserves of 2.2 billion tons of gold and copper.

Chinese also eye Gwadar Port 

Furthermore, the officials said that the Chinese government was also interested in making Gwadar Port fully functional as it would help shift gold and copper extracted from Afghanistan to abroad.

China had invested about $3 billion in gold and copper mining projects in Afghanistan, said officials. The officials added if China uses Gwadar Port for the purpose, it could shift the gold and copper to international markets economically and in shorter time.

They said that the current Singapore-based operator had not yet been able to make the port fully operational.

Unfortunately, the company  has not fulfilled its agreement,” officials said.

To a question, they said China would construct 20 more berths from the present five if it takes charge of Gwadar Port.

Published in The Express Tribune, December 16th, 2010.]]>
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			<title>Alternate view: How to scare away foreign investors</title>
			<link>https://tribune.com.pk/story/89267/alternate-view-how-to-scare-away-foreign-investors</link>
			<comments>https://tribune.com.pk/story/89267/alternate-view-how-to-scare-away-foreign-investors#comments</comments>
			<pubDate>Mon, 13 Dec 10 05:17:44 +0500</pubDate>
			<dc:creator>
				<![CDATA[farooq.tirmizi]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=89267</guid>
			<description>
				<![CDATA[Why the uproar surrounding Reko Diq is unjustified.]]>
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				<![CDATA[The current uproar over the Reko Diq project, which politicians of all stripes have tried to taint as an exploitative neo-imperialist resource grab, stems from a complete lack of understanding of the mining industry.

The Tethyan Copper Company (TCC) is offering the Balochistan government an exceptionally good deal and the National Economic Council has been wise to accept it.

The constant barrage of allegations against the project, however, has been so strong that it has even moved the Supreme Court to investigate any potential wrongdoing. If bribes were indeed used by the company to either obtain the exploration contract or secure otherwise favourable terms, then that would be worthy of prosecution. Anything short of it should be beyond the scope of the court’s investigative powers. Incompetence, sadly, is not illegal.

That said, even a cursory examination of the regulatory structure of mining industry in Pakistan, the nature of the global mining business or even the actual agreement between Tethyan and the Balochistan government will reveal that the Reko Diq project is, at bare minimum, not an exploitative deal.

Regulatory hurdles

Mining in Pakistan is regulated primarily by provincial governments, although the role of the federal government cannot be ignored. In particular, the existing rules are structured heavily against the interests of mining companies and in a way that is certain to invite corruption and discourage investment.

In most countries with successful mining industries, for example, regulations allow the company that has been granted an exploration licence to automatically begin production once a sufficient reserve of minerals is discovered.

The rules in Balochistan differ in a very significant way. While the company that carries out exploration does have the right to start production, it is subject to further approval from the provincial government, which provides the bureaucrats and politicians an opportunity to change their mind. This is inherently unfair since the mining company invests heavily in the exploration process only because there is the prospect of being able to extract the minerals itself after they are discovered.

In the case of Reko Diq, TCC has spent over $220 million in exploration efforts. It should have the right to develop the field and profit from their extraction. Otherwise, why would it invest in the first place?

Tethyan’s willingness to invest in Balochistan at a time when nobody else is even trying should be rewarded by allowing them to move ahead with the extraction phase.

In fact, the only conceivable reason the provincial government would change its decision to award development rights to an exploration company is corruption. It is far too easy to use populist rhetoric against a foreign mining company to revoke their licence and then quietly sell off what are now proven mineral reserves to some other company in exchange for hefty bribes.

Mining industry compulsions

Mining companies around the world have a simple rule: winners pay for losers. Companies often go through as many as a dozen exploration sites or even more before they find a commercially viable reserve that can be extracted.

The mining company, however, has to pay for the exploration costs of all of its failed ventures in addition to the profitable ones. This is why the commercial feasibility point of a mine is set relatively high: if a mine cannot earn enough to pay for failed explorations, then it is not worth investing in.

It is unfair, however, to determine mining profitability purely on the basis of numbers from one mine. Several foreign mining companies have conducted dozens of failed exploration efforts. When calculating the rate of return for mining firms, the cost of those failed efforts should be incorporated. After all, they did pay for it.

The Reko Diq deal

The Tethyan Copper Company plans to invest up to $3.3 billion in developing the mine. In case it was not immediately obvious, that means $3.3 billion in foreign direct investment flowing into Pakistan. It is unlikely that the opponents of the project can name anything else that would attract that kind of investment into Balochistan under current circumstances.

For doing absolutely nothing other than being fortunate enough to be the government of the province, the Balochistan government gets a 25 per cent share in the company. This is in addition to the royalties it will be charging the company on revenues and does not include the corporate income tax that the company will be paying to the federal government.

When all of those outflows are factored in the share of Tethyan’s parent companies – Barrick Gold Corporation of Canada and Antofagasta of Chile – it will take away less than 50 per cent of the profits from the mine. Under what moral system is it unfair to Pakistan to put up none of the investment and get more than half the profits? By what logic can that be called exploitative?

Scaring the money away

The reality is that mining is one of those issues that are relatively easy to exploit by politicians. The target of ire is often a rich foreigner and the subject is the mineral wealth of the country. Yet any examination of the numbers suggests that the relationship is far from exploitative, and indeed tilted heavily in favour of the host governments. Populist rhetoric has a tendency to drive away the very small number of foreign investors currently still willing to risk their money in Pakistan. The country’s leaders should be encouraging them, not driving them away.

The writer is a financial and management consultant based in Karachi

Published in The Express Tribune, December 13th, 2010.]]>
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			<title>The Reko Diq saga : Province can develop copper mine on its own</title>
			<link>https://tribune.com.pk/story/89264/the-reko-diq-saga-province-can-develop-copper-mine-on-its-own</link>
			<comments>https://tribune.com.pk/story/89264/the-reko-diq-saga-province-can-develop-copper-mine-on-its-own#comments</comments>
			<pubDate>Mon, 13 Dec 10 04:59:23 +0500</pubDate>
			<dc:creator>
				<![CDATA[shahidur.rehman]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=89264</guid>
			<description>
				<![CDATA[Balochistan can develop copper reserves at less than one-third cost estimated by Tethyan Copper Company.]]>
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				<![CDATA[The Balochistan government will be able to develop the copper reserves at Reko Diq at less than one-third the cost estimated by the feasibility study submitted by the Tethyan Copper Company, official sources well-versed with the project have said.

The sources, who played an important role in the preparation of the PC-1 for the project as approved by the Executive Committee of the National Economic Council (Ecnec) on Thursday, said that the PC-1 provides for the setting up of a smelter and refinery at the mining site, doing away with the most expensive component of the project estimated at $2 billion by the consortium.

The consortium had proposed that copper concentrate would be transported from Reko Diq to Gwadar via a 600-kilometre-long pipeline for shipment to a smelter outside the country. Another important cost of the feasibility study was the provision for setting up a power plant.

Officials point out that Saindak Copper project, located only 40 kilometres from Reko Diq, was importing power from Iran and a similar arrangement could be worked out by the provincial government.

TCC, a joint venture between a Chilean and a Canadian company, carried out exploration for copper at Reko Diq in Chaghai district of Balochistan and estimates to have invested $220 million in identifying the potential areas suitable for mining. It had, obviously, sought rights to develop the mine.

According to the thinking in official quarters, Balochistan can easily set up a company to develop the mine and related facilities.  An arrangement could be worked out with the consortium whereby it would be repaid its investment incurred on the exploration activities.

How we got here

The exploration licence for the Reko Diq project was originally awarded to BHP of Australia in 1993, which incorporated the Tethyan Copper Company in collaboration with another Australian company, Mincor Resources.

TCC was subsequently sold to its present owners, Barrick Gold Corporation of Canada and Antofagasta of Chile.

It is relevant to mention that a Chinese company, China Mining and Metallurgical Corporation (CMMC), has been mining copper in the area (Saindak) for more than a decade. Industry sources in Islamabad say that the Chinese company has also quietly lobbied to secure the mining licence for Reko Diq.

The reserves at Reko Diq are estimated to be four times larger than the Saindak mine.

Under the licencing agreement, a foreign company could not sell its interest without permission of the government. When and under what terms and conditions BHP sold its interest in the present consortium is a mystery, but the process took place under a deed of waiver and consent signed by the company with the provincial government in 2000.

A senior government official who took part in the negotiations with TCC on the directive of former prime minister Shaukat Aziz said that he had pointed out to then prime minister that Pakistan was not getting a fair deal but the main consideration at that time was to attract foreign companies to Pakistan.

The official recalled that even at the time of awarding the licence for exploration, there was talk of incorporating a provision in the agreement for arbitration.

According to the concerned officials, TCC had initially proposed a ridiculous two percent royalty to the Balochistan government but subsequently revised it to 25 per cent share in profits, subject to 25 per cent equity.

It was proposed that if the Balochistan government was not in position to pay the equity, its share would be deemed paid and adjusted against future payments.

Eyebrows were also raised in August this year, when TCC submitted a feasibility study for initial development of the mine estimated at $3.3 billion. The biggest component worth $2 billion was laying of a pipeline from Reko Diq to Gwadar for transportation of the slurry bearing copper.

From Gwadar, this slurry would be shipped to a smelter either in Chile or another country in the region where copper content would be separated chemically.

Officials highlighted that underground transportation of concentrated ore was not only an impractical proposition but would also rob the province of ascertaining the worth of mine’s produce. They were also quick to point out that the Chinese company mining copper at Saindak has set up a smelter at the site.

The PC-1 approved by the Planning Commission provides for an indigenous smelter to process 15,000 tons of ore per day with its own refining facilities.

“The whole project proposed by the Planning Commission would cost a maximum of $1 billion.  The mining and processing of ore and its downstream utilisation would generate badly needed employment as well as give Balochistan control over its wealth,” said a Planning Commission official.

The estimates of yield from copper reserves at Reko Diq being mentioned in the media are mind-boggling.  At the prevailing copper prices of $8,000 per ton, they are estimated at over $220 billion. This is in addition to the gold yield from the reserves whose real worth remains unknown.

To date, all negotiations for exploration and mining licences have been held by the ministry of petroleum and natural resources but the scenario has radically changed with passing of the 18th constitutional amendment.

The exploration licence is expiring in February 2011 and TCC has already submitted its proposal for development of the mine.

One can only hope that court proceedings related to the project end in a test case whereby various aspects of wheeling and dealing of corruption by big companies, bureaucracy and politicians is brought to the front.

A regional game

The Pakistani Taliban are smuggling truck-loads of copper ores, including gold, from tribal South Waziristan to China, sources in industry and the Federally Administered Tribal Area secretariat have claimed.

They say large copper deposits have been found in South Waziristan and that drilling and surveys estimate reserves exceeding 122 million tons across a large area, particularly at Shiniyaee and Boya in the tribal agency.

Industry sources say that the truck-loads are perhaps meant for chemical analysis of the ore reserve believed to have contents of gold and cobalt. Although the area is commanded by the Taliban, the Fata secretariat is busy working on a proposal to mine and develop the ore.

The copper reserves at South Waziristan are part of the great copper belt originating from Tibet and transiting through Pakistan to Iran, Afghanistan and Azerbaijan in Central Asia.  The belt stretches from Gilgit-Baltistan in the north to Balochistan in the south, near the border with Iran and Afghanistan. Concentration, however, has been identified at South Waziristan, Saindak and Reko Diq.

Meanwhile, the Chinese are mining copper at Monywa in the Tibetan Plateau and Saindak in Balochistan. They have also expressed interest in mining the copper reserves of the Tethyan Metallogenic Belt at Reko Diq, located about 40 kilometres from Saindak. They have already secured rights to mine the copper reserves in Afghanistan.

Published in The Express Tribune, December 13th, 2010.]]>
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			<title>Riko Deq mines: Raisani hails project handover</title>
			<link>https://tribune.com.pk/story/88358/balochistan-govt-will-run-reko-diq-projec%c2%adt</link>
			<comments>https://tribune.com.pk/story/88358/balochistan-govt-will-run-reko-diq-projec%c2%adt#comments</comments>
			<pubDate>Sat, 11 Dec 10 05:00:21 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Balochistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=88358</guid>
			<description>
				<![CDATA[Chief minister hails Ecnec decision of handing over the Reko Diq project to the Balochistan government.]]>
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				<![CDATA[The Chief Minister Balochistan, Nawab Muhammad Aslam Khan Raisani, has said that the provincial government itself will run the multi-billion-dollar Riko Deq copper-gold project in Chagai district.

Talking to newsmen after the Balochistan Assembly session here on Friday, the chief minister welcomed the decision of Ecnec to hand Riko Deq project to the Balochistan government. “Now that we have Ecnec’s approval, we will hire a consultant and a project director to begin the project,” he said.

Balochistan will receive Rs120 billion from the federal government as gas development surcharge arrears. This amount will be spent for funding the Riko Deq project, Raisani said, when asked whether the Balochistan government has enough resources to run the project.

Raisani clarified that the provincial government has not signed any agreement with the Tethyan Copper Company Pakistan (Pvt) Limited (TCC) for mining or refining the metal. The firm had been hired solely as an exploration company. The chief minister said exploration charges will be paid to the company. “We will call a third party to estimate the expenditures made by TTC for which the government will pay.”

Raisani emphasised that Gwadar port and Riko Deq project were Balochistan’s assets and no one could take them away from it. “We have the required technical skill to run major projects like Riko Deq and Gwadar,” he said.

Balochistan Institute of Technical Education is training youths who will be able to help run the Riko Deq project, he added. The chief minister announced that the government will soon establish technical educational institutes to overcome the shortage of technical and qualified people.

According to the feasibility report submitted by TCC, initial mine development investment for Reko Deq project is estimated at $3.3 billion (about Rs272 billion) which includes development of basic infrastructure like power, water and concentrate pipelines, roads, and port development. Estimated payable metal production over a 56-year mine life is 22 billion pounds of copper (10 million tons) and 13 million ounces of gold.

Published in The Express Tribune, December 11th, 2010.]]>
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			<title>Reko Diq: Chinese firm interested in partnering with Tethyan Copper</title>
			<link>https://tribune.com.pk/story/85450/reko-diq-chinese-firm-interested-in-partnering-with-tethyan-copper</link>
			<comments>https://tribune.com.pk/story/85450/reko-diq-chinese-firm-interested-in-partnering-with-tethyan-copper#comments</comments>
			<pubDate>Fri, 03 Dec 10 19:36:52 +0500</pubDate>
			<dc:creator>
				<![CDATA[faseeh.mangi]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=85450</guid>
			<description>
				<![CDATA[Tethyan CEO says no new company will be part of the project.]]>
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				<![CDATA[State-controlled China Minmetals Corporation has shown interest in partnering with Tethyan Copper Company (TCC), a consortium formed by Chilean and Canadian companies, adding yet another twist to the Reko Diq project.

Minmetals is interested and is studying the project, Santiago-based newspaper La Tercera quoted President Minmetals Zhou Zhongshu as saying at a recently organised seminar.

CEO TCC Gerhard Von Borries, however, denied any such developments, reaffirming that the Reko Diq deal is only between Antofagasta and Barrick Gold, the two mining stalwarts, and the provincial government of Balochistan. “This is the way it will stay,” asserted Borries.

Speculation has been rife in Pakistan as to the fate of the Reko Diq project which recently attracted attention of the Supreme Court after reports that prized assets of the country were being sold at a very low price.

The Supreme Court last week declined to grant a stay order in awarding the Reko Diq mining contract and adjourned the hearing till December 15.

Minmetals and TCC, among other companies, own sites on the Tethyan belt in Chagai district of Balochistan. However, TCC is the only company that has completed a feasibility study for operating a mine in the area and sent it for approval to the provincial government.

The company will seek a mining licence after the feasibility study is approved, according to Borries.

The area under consideration for mining runs in the Tethyan belt, a major mineralised zone that extends across central and southeast Europe, Turkey, Iran, Pakistan, through the Himalayan region into Burma, Malaysia, Indonesia and Papua New Guinea.

It is estimated that the mine will produce 200,000 tons of copper and 250,000 ounces of gold annually. The company site holds reserves of 2.2 billion tons of gold and copper.

Chile is China’s second largest trading partner in Latin America and trade between the two countries last year rose 2.1 per cent to $17.72 billion.

What is at stake?

Tethyan Copper Company plans an initial investment of $3.3 billion in the 56-year mining project once the government accepts the feasibility report.

The provincial government will invest 25 per cent and in return will get more than half of the total profits made from the project, according to TCC.

The federal and provincial governments will get 52 per cent of the profits from return, royalty and taxes while TCC will get 48 per cent, informed TCC.

Published in The Express Tribune, December 4th, 2010.]]>
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			<title>Mineral riches: Raisani vows to defend Reko Diq project</title>
			<link>https://tribune.com.pk/story/82512/mineral-riches-raisani-vows-to-defend-reko-diq-project</link>
			<comments>https://tribune.com.pk/story/82512/mineral-riches-raisani-vows-to-defend-reko-diq-project#comments</comments>
			<pubDate>Sat, 27 Nov 10 05:22:46 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Balochistan]]></category>
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				<![CDATA[Balochistan Chief Minister criticises media for villifying him over the project.]]>
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				<![CDATA[Balochistan Chief Minister Nawab Mohammad Aslam Raisani has renewed a pledge to defend the rich copper and gold reserves at Reko Diq along with the other mineral and natural wealth found elsewhere in the province.

“I cannot even think of selling Reko Diq’s at a throwaway price,” Raisani told media here on Friday evening. “I will remain in the Chief Minister Secretariat or at the Sarawan House, I will continue to defend my people’s wealth and resources no matter what the cost,” he added.

He claimed that a deliberate campaign was afoot to vilify him in the media and bear down pressure on him. The chief minister, however, vowed to resist all such plots against him and promised to continue to protect the natural wealth of Balochistan. He was referring to columnists and analysts who were giving the incorrect impression of him being willing to sell his people’s assets at a throwaway prices.

Raisani said that that they were naïve and were unaware of the facts and the ground realities of the issue and had instead begun to speculate. He challenged them to prove the charges brought forward against him.

He advised the media to avoid speculation and cease the vilification campaign against him as he believed that the resources at Reko Diq and elsewhere were the property of the people of Balochistan.

The chief minister said that he considered himself the custodian of the natural wealth of his people. “It is impossible that I will sell it at a throwaway price,” Raisani told journalists.

“I would be the last person to take such a decision,” he said, reiterating his stand that the government of Balochistan had the will, the resources and the expertise to operate the Reko Diq project.

Nawab Raisani renewed his earlier stance of there being no fresh agreement with the Chilean company. Though there is an agreement pertaining to exploration of mineral wealth only, he said, there is no agreement on the exploitation of mineral wealth at Reko Diq.

Published in The Express Tribune, November 27th, 2010.]]>
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