Blame game: Tethyan Copper hits out at govt for refusing licence
Says mineral rules have been violated, Balochistan rejects accusations.
QUETTA:
Tethyan Copper Company (TCC), in response to Balochistan’s refusal to grant mining licence for Reko Diq project, has charged the provincial licensing authority with violating mineral rules as well as TCC’s rights under a joint venture agreement and Pakistani laws.
The Balochistan government has rejected TCC’s mining lease application for exploring copper and gold reserves in Reko Diq area. TCC had submitted the application in February this year, following submission of a feasibility study in August 2010.
In a press release issued on Friday, TCC said Balochistan had not responded to requests for meetings to resolve the issue and the rejection notice compromised the company’s preferred route to sort out issues through negotiation.
“The licensing authority’s summary refusal to grant the mining licence, to which TCC is entitled, breaches not only the Balochistan Mineral Rules (2002), but also TCC’s rights under the Chagai Hills Exploration Joint Venture Agreement and Pakistani law,” it said.
Discussing the merits and benefits, TCC said it believed the Reko Diq project could contribute significantly to the development of a modern and transparent mining industry in Balochistan, contributing to the local and greater Pakistani economy through large foreign direct investment and through revenue generation and local investment during the mine’s expected life of 56 years.
“We firmly believe that our activities to date have been fully in line with the Balochistan Mineral Rules (2002) and we will welcome the opportunity to discuss this with the provincial regulator and the government,” said Tim Livesey, CEO of TCC.
According to Livesey, the project has the potential to kick-start the mining sector in Balochistan and will act as a catalyst for further investment in exploration and mining by independent parties.
“Tethyan is committed to developing its mine at Reko Diq in line with international best practice with respect to environment, labour, health and safety,” he said.
Responding to TCC’s claims, Balochistan government’s focal person Ali Madad Jatak denied that the provincial government had breached the agreement, saying the application for mining licence was rejected because TCC violated the agreement.
Talking to The Express Tribune, he said Balochistan had the capability to run the project smoothly. “Chief Minister Nawab Aslam Raisani wanted people to own the province’s mineral resources and the decision was taken in people’s interest. The exploration licence was granted to an Australian company in 1993-94 and the company sold its shares without taking the government into confidence,” he said.
Tethyan Copper Company Pakistan (Private) Limited is a joint venture between Barrick Gold of Canada and Antofagasta Minerals of Chile – both gold and copper mining giants.
TCC, in partnership with the Balochistan government, is evaluating the development of a world-class copper and gold mine at Reko Diq, District Chagai of Balochistan. The company has already invested over $200 million in the project since 2006.
Published in The Express Tribune, November 19th, 2011.
Tethyan Copper Company (TCC), in response to Balochistan’s refusal to grant mining licence for Reko Diq project, has charged the provincial licensing authority with violating mineral rules as well as TCC’s rights under a joint venture agreement and Pakistani laws.
The Balochistan government has rejected TCC’s mining lease application for exploring copper and gold reserves in Reko Diq area. TCC had submitted the application in February this year, following submission of a feasibility study in August 2010.
In a press release issued on Friday, TCC said Balochistan had not responded to requests for meetings to resolve the issue and the rejection notice compromised the company’s preferred route to sort out issues through negotiation.
“The licensing authority’s summary refusal to grant the mining licence, to which TCC is entitled, breaches not only the Balochistan Mineral Rules (2002), but also TCC’s rights under the Chagai Hills Exploration Joint Venture Agreement and Pakistani law,” it said.
Discussing the merits and benefits, TCC said it believed the Reko Diq project could contribute significantly to the development of a modern and transparent mining industry in Balochistan, contributing to the local and greater Pakistani economy through large foreign direct investment and through revenue generation and local investment during the mine’s expected life of 56 years.
“We firmly believe that our activities to date have been fully in line with the Balochistan Mineral Rules (2002) and we will welcome the opportunity to discuss this with the provincial regulator and the government,” said Tim Livesey, CEO of TCC.
According to Livesey, the project has the potential to kick-start the mining sector in Balochistan and will act as a catalyst for further investment in exploration and mining by independent parties.
“Tethyan is committed to developing its mine at Reko Diq in line with international best practice with respect to environment, labour, health and safety,” he said.
Responding to TCC’s claims, Balochistan government’s focal person Ali Madad Jatak denied that the provincial government had breached the agreement, saying the application for mining licence was rejected because TCC violated the agreement.
Talking to The Express Tribune, he said Balochistan had the capability to run the project smoothly. “Chief Minister Nawab Aslam Raisani wanted people to own the province’s mineral resources and the decision was taken in people’s interest. The exploration licence was granted to an Australian company in 1993-94 and the company sold its shares without taking the government into confidence,” he said.
Tethyan Copper Company Pakistan (Private) Limited is a joint venture between Barrick Gold of Canada and Antofagasta Minerals of Chile – both gold and copper mining giants.
TCC, in partnership with the Balochistan government, is evaluating the development of a world-class copper and gold mine at Reko Diq, District Chagai of Balochistan. The company has already invested over $200 million in the project since 2006.
Published in The Express Tribune, November 19th, 2011.