Pakistan

Reko Diq case: SC orders probe into licence irregularities

Balochistan didn’t get a penny out of the $60m earned by foreign firms: AG

Express January 29, 2011

ISLAMABAD:

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.

COMMENTS (12)

usmanpak | 13 years ago | Reply I am forwarding a link for more detail: http://pakistanpostman.blogspot.com/2011/01/govt-not-taking-reko-diq-case-seriously.html http://pakistanpostman.blogspot.com/2011/01/pakistan-cannot-develop-thar-coal.html

usmanpak | 13 years ago | Reply @Cheema: Thanks Cheema ! I rthink Reqo Dik project is one thing,,, but Thar Coal Project is following the same fate... talks talks talks and no decision

VIEW MORE COMMENTS

The Only Normal Person Here. | 13 years ago | Reply // governors were not authorised to act on behalf of the government.// What exactly is that supposed to mean CJ sahib?

nasir | 13 years ago | Reply that why they say court shud not interfere in economic matters. chief justice dont know what to do now.if he give that contract to pakistani govt the money will go in the pocket of corrupt politicans , trible leaders and govt officials . poor people of balochistan will get nothing. this project will never materilized if giving to pakistani govt.same thing happned when sc stoped privatization of steel mill and now we losing billions in steel mill.

kumar | 13 years ago | Reply How come this supreme court is not taking equally enthusiastic notice of the blasphemy laws and the manipulation and injustice done there? Can Justice Iftikhar choudhry reply? or is he scared?

Tanweer Ahmed | 13 years ago | Reply I believe the contract carries the terms and conditions on term renewal. If the government decides not to renew the license, it should have a reason in accordance to the contracts terms & conditions. Further that it should also be looked into the arbitration clause of the contract whether if specifies a court of justice in Pakistan or ICSID. Is there anyone out there who can share the above information with readers. Hope the Express Tribune can get hold on the contents of the contract.

Usman | 13 years ago | Reply I must congratulate SC on taking this suo moto action on this case. This potentially could be the biggest robbery of gold ever in the history of this world. May I suggest here that Pakistan should invite an international company to develop the mines in Riko Diq without asking them to invest. The investment should be made by the state of Pakistan. If there is a shortage of investment international funds can be raised from expatriate Pakistanis. Expatriate Pakistanis should allowed to invest in this project. I think this would be a very attractive investment for expatriate Pakistanis. Friendly countries like UAE, China and Saudi Arabia can also be invited to invest in the form of medium term loans on which international costs can be paid. Many financial arrangements can be designed to fund this project instead of giving 75% to an international company and lose all the riches of the Baluchistan province. The arrangements should be all very transparent. One thing is for sure international company is required to develop this project because mining technology available with Pakistan cannot develop this gold mine.

Cheema | 13 years ago | Reply correction: ICSID is International Court for Settlement of Investment Disputes

Cheema | 13 years ago | Reply I completely agree with usmanpak here. If the Govt. of Balochistan decides to not allow TCC to renew its license(s), then they are surely going to be sued in the International Court for Settlement of International Disputes (ICSID), over and above returning TCC's investment in exploring the mine. Any decision, based on nationalistic notions of a single scientist/gentleman with ideas bordering on experimentation of a new unproven technology or 20 odd senators in their haste, has to be weighted against the damages to be paid to TCC as well as the dilution of Pakistan's credibility in international investment circles. Respect!

usmanpak | 13 years ago | Reply decision delayed is decision derailed ....... Supreme Court Cheif Justice took Sou motto action for irregularities in mining license to TCC ( Australian based company), but now he is stuck up. Instead of waiting for the time once this company suo Pakistan Government in International Court and we have to hand over this project to the same company with embarrassing sanctions, I personally believe that we should make up some decision..

maitre | 13 years ago | Reply It's national resource. That means to say the contract should be awarded to a company or group of companies keeping in mind the importance of the natural resources and its impact on the country's economy. All the mining companies should be barred and refused mining license to the site for their anti-Pakistan activities and attitude.

Tanweer Ahmed | 13 years ago | Reply Great.... Now these 26 senators should press the government to award contract only to a company who along with mining should also process and refine them locally. No crude to be exported. Just stoping the mining will not bring any benefit, rather it should go on but is a way that people and the government gets maximum benefit out of that.

Replying to X