Reko Diq: Balochistan government refuses to grant license to Tethyan Copper

Official says TTC can appeal against the decision in court, Balochistan govt reserves right to refuse mining license.

QUETTA: 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.