Apex court questions TCCP sub-lease for Reko Diq exploration

SC notes the Balochistan government never approved amendment in Joint Venture Agreement to allow TCCP exploration.

ISLAMABAD:

A three-member bench of the Supreme Court on Tuesday questioned how the Tethyan Copper Company Pakistan (TCCP) been given rights by BHP unilaterally without obtaining consent from the Balochistan Government first despite having rights in the project only as a partner of the Joint Venture Agreement (JVA)  made for the project in Reko Diq.

Reko Diq is a multi-billion dollar project in the area of district Chaghi of Balochistan where millions of tonnes of copper and gold were identified in different reports prepared by world renowned companies.

The three-member bench comprising Chief Justice of Pakistan Justice Iftikhar Muhammad Chaudhry, Justice Gulzar Ahmed and Justice Sheikh Azmat Saeed resumed hearing on the pending issue of grant of mining lease over exploration of gold and copper reserves in the Reko Diq area.

Khalid Anwar, counsel for TCC said that Balochistan Government had enhanced the area for exploration of minerals and awarded contract for 44,000 kilometer area instead of 13,000 kilometer in its own interest. He added that the provincial government had failed to explore gold and copper reserves in the area.

The counsel said that the foreign company has invested large amount of funds for exploration during the last ten years.

Justice Gulzar said that the Balochistan government was not a part of amendments made in the license since there was no stamp of the governor on the agreement. Anwar responded that the Balochistan Government never refused that document either.

The Chief Justice remarked that there was nothing on record that the governor had approved it and added that the governor was bound to follow the advice of the Chief Executive under PCO.

Advocate General Amanullah Kanrani informed the court that TCCP had received documents before government of Balochistan and departments concerned. He said that he himself got copies from TCCP while original documents were in TCC's custody and added that if the documents are produced before the apex court, a separate case could be registered against the company.

The Chief Justice asked Anwar that the amendment on which he was depending should be checked for its authenticity.

Kanrani told the court that the Balochistan government had no record. Anwar said that the Chief Minister had sent a summary with amendments for approval in May 1999 and it was included in the Balochistan Government documents presented to the apex court.

The Chief Justice though observed that the summary was not approved but it was suggested that a committee should be formed to look into the matter. The Chief Justice remarked that the court knew validity of every document and added that the Balochistan government is part of this case and we could not exclude it from the case.

The bench adjourned further hearing till Wednesday by advising TCCP’s counsel to conclude his arguments on Wednesday.