A golden goose: Govt under fire for ‘misdealing’ with mining company
Refuses to transfer ownership to Balochistan citing ‘outstanding dues’.
Senators claimed that the reserves in Saindak held lots of other minerals in addition to copper and gold, but no one was monitoring the project. PHOTO: FILE
ISLAMABAD:
The finance ministry has refused to transfer the ownership of gold and copper mining company Saindak Metal Limited (SML) to Balochistan under the Aghaz-e-Haqooq-e-Balochistan package, as the federal government has claimed an outstanding loan against the company.
While briefing the Senate Standing Committee on Petroleum and Natural Resources, which met here on Tuesday under the chairmanship of Senator Muhammad Yousuf, the finance ministry refused to transfer the ownership of SML to Balochistan, claiming outstanding dues of Rs27 billion.
SML Managing Director Muhammad Raziq Sanjrani informed the panel that the federal government had earned $220 million from its involvement in the project, whereas the Balochistan government had received $39 million in royalties since 2002. He said that the Chinese company, which undertakes the actual mining work on the project, had additionally paid $210 million to SML as the latter’s share.
He informed the panel that the federal government had invested Rs27 billion on project infrastructure, which it was now claiming as a loan which Balochistan should pay before the company was transferred to its ownership.
The panel strongly criticised the federal government for its claim, and asked why the amount should be considered a loan if it had received $220 million from the Saindak gold and project as a return on investment.
The committee was also informed that the government had extended a multimillion dollar contract with the Metallurgical Corporation of China (MCC) for gold and copper mining in Saindak for another five years after its expiry in October 2012. It was also told that the Chinese company did not have a refinery in Pakistan that could process gold and copper, so it was refining ore from a refinery located outside the country.
MCC then came under fire for extracting minerals from Saindak and repatriating it to a foreign territory. Senators alleged that the reserves in Saindak held lots of other minerals in addition to copper and gold, but no one was monitoring the project to check their exploitation. The committee asked the SML management to get samples of gold and copper checked from a laboratory in the UK.
Senator Abdul Nabi Bangash alleged that it was a criminal act to extend the lease of the contract and preventing the project from being transferred to Balochistan. He criticised the PPP government, saying it had done nothing for the impoverished province.
Committee Member Rubina Irfan said that the gold and copper project had been launched for the welfare of the indigenous people, “But there is no facility of schools, hospitals and water supply for the local population,” she observed.
Committee Member Mustafa Kamal said the extension in lease of the Saindak project was a criminal act, and also criticised the federal government for not transferring the ownership of SML to the Balochistan government despite receiving a huge amount against investments made on the project.
Committee Chairman Muhammad Yousuf added that the Chinese firm had “occupied” gold and copper resources in Balochistan by investing merely $25 million in the project. He reiterated that samples of ore mined from Sandak should be checked from an independent laboratory.
Published in The Express Tribune, March 20th, 2013.
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The finance ministry has refused to transfer the ownership of gold and copper mining company Saindak Metal Limited (SML) to Balochistan under the Aghaz-e-Haqooq-e-Balochistan package, as the federal government has claimed an outstanding loan against the company.
While briefing the Senate Standing Committee on Petroleum and Natural Resources, which met here on Tuesday under the chairmanship of Senator Muhammad Yousuf, the finance ministry refused to transfer the ownership of SML to Balochistan, claiming outstanding dues of Rs27 billion.
SML Managing Director Muhammad Raziq Sanjrani informed the panel that the federal government had earned $220 million from its involvement in the project, whereas the Balochistan government had received $39 million in royalties since 2002. He said that the Chinese company, which undertakes the actual mining work on the project, had additionally paid $210 million to SML as the latter’s share.
He informed the panel that the federal government had invested Rs27 billion on project infrastructure, which it was now claiming as a loan which Balochistan should pay before the company was transferred to its ownership.
The panel strongly criticised the federal government for its claim, and asked why the amount should be considered a loan if it had received $220 million from the Saindak gold and project as a return on investment.
The committee was also informed that the government had extended a multimillion dollar contract with the Metallurgical Corporation of China (MCC) for gold and copper mining in Saindak for another five years after its expiry in October 2012. It was also told that the Chinese company did not have a refinery in Pakistan that could process gold and copper, so it was refining ore from a refinery located outside the country.
MCC then came under fire for extracting minerals from Saindak and repatriating it to a foreign territory. Senators alleged that the reserves in Saindak held lots of other minerals in addition to copper and gold, but no one was monitoring the project to check their exploitation. The committee asked the SML management to get samples of gold and copper checked from a laboratory in the UK.
Senator Abdul Nabi Bangash alleged that it was a criminal act to extend the lease of the contract and preventing the project from being transferred to Balochistan. He criticised the PPP government, saying it had done nothing for the impoverished province.
Committee Member Rubina Irfan said that the gold and copper project had been launched for the welfare of the indigenous people, “But there is no facility of schools, hospitals and water supply for the local population,” she observed.
Committee Member Mustafa Kamal said the extension in lease of the Saindak project was a criminal act, and also criticised the federal government for not transferring the ownership of SML to the Balochistan government despite receiving a huge amount against investments made on the project.
Committee Chairman Muhammad Yousuf added that the Chinese firm had “occupied” gold and copper resources in Balochistan by investing merely $25 million in the project. He reiterated that samples of ore mined from Sandak should be checked from an independent laboratory.
Published in The Express Tribune, March 20th, 2013.
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