Reko Diq case: Counsel admits Pakistan free to ink accords with foreign firms

Islamabad can sign deals with countries with which it has no treaties.

ISLAMABAD:

The counsel for a petitioner in the Reko Diq mining agreement issue on Tuesday admitted before the Supreme Court that the government was free to enter into commercial agreements with foreign companies of those countries with which it had no treaties; but such accords will be operated within the framework of Pakistan’s legislation.

Syed Raza Kazim, counsel for Dr Abdul Haq Baloch, one of the petitioners, resumed his arguments before the three-member bench including Chief Justice Iftikhar Muhammad Chaudhry.

The petitioner had moved an application seeking initiation of criminal proceedings against the provincial government for violating the May 25, 2011 order of the court. Kazim argued that the Tethyan Copper Company Australia (TCCA) was not a mining company and subsequently the Tethyan Copper Company Pakistan (TCCP) was established to undertake the project.

The chief justice observed that such agreements will fall within the jurisdiction of the federal government and not of provincial governments. He said the BHP Minerals – a mining company – in 1989 tried exploration in the area but failed and signed an agreement on February 7, 1998 with the TCCA. He questioned under which rules the relaxation was granted as the government was required to be in the picture under the relevant legislation.

Kazim replied that the TCCA was not controlling anything in Pakistan as after the year 2000 as it was formally sold out by BHP Minerals to Tethyan’s Pakistan counterpart.

The bench adjourned hearing and asked the counsel to conclude his arguments on Wednesday with relevant documents.

Published in The Express Tribune, November 14^th, 2012.