Reko Diq contract language disgraceful: Justice Ramday

Committee comprising geologists is going over feasibility report submitted by Tethyan Copper Company.

ISLAMABAD: 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 1^st, 2011.