Balochistan Chief Secretary Ahmed Baksh Lehri told journalists here on Tuesday that TCC had submitted an incomplete feasibility report to Balochistan government about the Reko Diq project. “The feasibility report does not carry the complete details of tapped resources at Reko Diq site but just one portion,” he said.
“We have three demands which include a complete feasibility report of the project. We want that refining be done in Balochistan so that metal mining technology can be transferred to Pakistan and we should at least know what is being extracted and what is being exported. Another key demand is that the agreement must be beneficial for the local people,” he told reporters.
The lease for the survey and exploration has already expired, he said. “If the company fails to remove deadlocks then the government can say no,” he said.
TCC, a joint venture between Chile-based Antofagasta Company and Canada’s Barrick Gold Corp served a ‘notice of dispute’ to the Balochistan government last Wednesday.
The partners filed the notice after the provincial government refused to meet the company executives and did not extend the 30-day deadline for it to respond to objections that the provincial government had risen over a mining lease.
According to the feasibility study of the project, there is approximately $127 billion worth of gold and copper reserves — an estimate contested by the Pakistani experts who say that the real value is over $260 billion.
Published in The Express Tribune, November 2nd, 2011.
COMMENTS (15)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
what a pity ! GOB in real is looking for kickbacks and i am sure minister does not care about the compensation because he knows the fact, he will never be the CM of Balochistan again.... why worry for 56$ billions that GOB will pay in compensation to the company if the decision goes in the favour of the company and which will be in the favour of the company as per my understanding.
in short GOB is going to learn this in hard way, furthermore it will not affect Raisaani, because GOB will be paying the compensation not the Raisaani nor the capital..
Pakistan with all its resources cannot do this job.? Because it require billions of dollars investment.( Pakistan can not invest to produce Electricity Which is basic requirement of Pakistan.). This is a multi million Dollar Mining project. Technical expertise's and experience is basic requirement. Law and order is must, Good road connections, willing workers ? Basic infrastructure, like electric,Clean drinking water, Hospital, Housing. there is no doubt that Provincial government of Balochistan can terminate this present contract. But at what cost International court of Arbitration will give every cent they have invested. I hope Government of Balochistan has enough money to pay compensations. Good luck to people and Government of baluchestan.
gr8 wrk balochistan has dne ...we shuld nt b treated lyk iraq ..if nt them than any otther company....set proper rules and follow them
refining should be in pakistan ...... otherwise we will not be able to know what they are extracting ....
@Rashid Ahmed: I second your thoughts on the subject. It is a case fit for the Suo Moto of Chief Justice. He should also consider and view the cases of other companies who were issued Exploration Licences and than cancelled on trivial reasons and again negotiated their grant against money and grafts. As a matter of fact this game is played by gang of four in the concerned department. The licences are issued, cancelled and reissued and the game goes on and on, not letting any one work. Bureaucracy appears to be the last stray on the back of economic camel of pakistan. Down with corruption in Government Departments and down with corruption of bureaucracy and the concerned ministers. Mr Raisaini appears to have lost his grip over his army of ministers.
Fair demands in my view.
The issue is that niether pakistan possesses the requisite expertise nor the financial muscle to do it on its own. all the tall claims by various quarters are, once again, absolute ridiculous. thw whole game is actually kickbacks, nothing more.
This is an exciting project for Baluchistan. if u check the website of these foreign companies, they are doing a lot of CSR work also.
Please in the name of SINCERITY to This country, issue them the license!!
I am unable to understand the physics of this denial, suddenly we have the resources and legal issues in awarding this contract. this is just a money game to me. as a Pakistani I will stand with the company not with the politicians.
Now when they have done their home work, every one has come to live and raising objections on the contract.. please for God sake, let them do this as GOB is not in a position morally and legally to deny this company. And if GOB denies, they should consider the consequences as according to Sehbai -- tcc can ask for 56 $ billion compensation. according to my little knowledge in past International Court has passed a verdict in favour of a foreign company and I am seeing the same result here.
I wish, Pakistan will do the projects like this by itself in the future, but for that we have to acquire technology and experienced man power.
Refuse the licence and Internationally advertise for the offers. At the same time select and appoint International firm through open International advertisement to evaluate the bids that will be received. This is one of the largest national asset and it needs to be properly exploited so that the people and the nation benefits.
govt of Baluchistan is with in its rite to demand that the refining be done in balu...tan not only will it help in transferring the refining tech. but also will create thousand of jobs in industrial units that will refine the ores....... they should stop the exploitation of the natural resources of balu...tan by any company........
There is a big money every one wants a piece of cake. But poor will be poor , but all serdars and chiefs will buy estates in England and make Swiss bank more richer. Corruption is back bone of our society. Why common Baluchis is so poor because his chief is so rich man. Who take billion of Rupees royalty of gas, Poor should stay poor that is key to control people. About this contract, Any new government will come will want their share of the cake. This is never ending Drama..
The basic tenet of contracts is that they are "binding". Parties cannot add conditions unilaterally after a contract is signed, even if they happen to "own" the property in question and they happen to be governments. The Balochistan government should have named these conditions in the contract for Reko Diq when it was first signed with TCC. Just because there is a change in government does not allow the new government to add new conditions.
The right thing to do here is to honor the original contract as it stands and work with the company to ensure that Balochistan's concerns are addressed. Any other outcome will not only hurt the state legally and financially (if TCC pursues its legal options in London), it will also drive away investors in the long-term. The Maharashtra government in India learnt that the hard way in the Dabhol power project case. Hope Balochistan doesn't repeat the same mistake.
In case you didn't know it - you need outside investment and extorting foreign companies isn't doing your cause any good. Time to wake up.
Baluch govt looking for kickbacks.