Chinese dragon: Counterproposal submitted for Reko Diq project

Published: December 16, 2010
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The current Singapore-based
operator had not yet been able to make the port fully operational. China has invested $3b in Afghanistan’s
gold and copper mining
projects.

The current Singapore-based operator had not yet been able to make the port fully operational. China has invested $3b in Afghanistan’s gold and copper mining projects.

QUETTA: The Metallurgical Corporation of China (MCC) has submitted a counter proposal for handing over the Reko Diq contract, Balochistan government officials said on Wednesday.

It would give the provincial government a 25 per cent share in the income, besides giving it a five per cent royalty, officials told APP.

MCC also offered that it would construct roads, besides setting up a power plant at the mine site,” officials said. Officials said the Balochistan government could ink an agreement with the Chinese company if it promised transfer of technology, besides giving the provincial government a decision-making member in the board of directors.

Tethyan Copper Company recently completed a feasibility report in Reko Diq. It will ask for a mining licence after the feasibility study is approved by the provincial government. The area holds reserves of 2.2 billion tons of gold and copper.

Chinese also eye Gwadar Port

Furthermore, the officials said that the Chinese government was also interested in making Gwadar Port fully functional as it would help shift gold and copper extracted from Afghanistan to abroad.

China had invested about $3 billion in gold and copper mining projects in Afghanistan, said officials. The officials added if China uses Gwadar Port for the purpose, it could shift the gold and copper to international markets economically and in shorter time.

They said that the current Singapore-based operator had not yet been able to make the port fully operational.

Unfortunately, the company  has not fulfilled its agreement,” officials said.

To a question, they said China would construct 20 more berths from the present five if it takes charge of Gwadar Port.

Published in The Express Tribune, December 16th, 2010.

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Reader Comments (9)

  • Raju
    Dec 16, 2010 - 9:14AM

    That is true business Terms conditions favorable to all partiesRecommend

  • Karim Mengal
    Dec 16, 2010 - 10:55AM

    We welcome China. Recommend

  • Jameel ur Rasheed
    Dec 16, 2010 - 2:38PM

    I love China. They are an all weather friend to Pakistan. Welcome China welcome. Long-live Sino-Pak friendship! :)Recommend

  • Mohammad naeem
    Dec 16, 2010 - 6:36PM

    This is good news. Both the projects rikodek and gwadar port should b given to china.Recommend

  • roshan zamir
    Dec 16, 2010 - 7:11PM

    Do it….pleaseRecommend

  • Raqib Ali
    Dec 17, 2010 - 2:49AM

    glad to see positive news coming out..Recommend

  • imran
    Dec 18, 2010 - 3:16PM

    China is our real sincere friend, we should provide it all the opportunities to invest, be it Reko Diq or Gawadar.
    Long Live Pak China FriendshipRecommend

  • Rehan Baloch
    Dec 19, 2010 - 1:28AM

    It will open a new door for inefficiency and corruption as we can see what the chinese are doing in the adjacent Saindak Copper and Gold project.They are paying miserly wages to the local enginners,crane operators and the lower staff but on the other hand their chinese counterparts are receiving hefty income.Remember that Saindak Copper and Gold project is a 50/50 investment between the chinese company MCC and Government of Pakistan.Blister copper is selling at 6500 dollars a ton in the international market and they are producing 75 tons a day.So that will be more than 14.5 million dollars a month.The chinese just take good care of the government officials,the FC contingent protecting the area (Kharan rifles) and the big wigs in the provincial and federal government providing them with money. booz and women and everybody turns a blind eye.Apart from that the chinese are wasting our resources as the just dump the low grade ores in search of the high grade ones.Their practices are just brutal to the environment.All they want is the money and the resource.They dont care about the local people or the best interest of the country they are working in.So its just a good dream that china is our well intentioned friend.Because as it is known between countries its the interests that matters not the hubby chubby expressions of friendship.
    The western companies are far more better than the chinese both in technical aspects and in work ethics but the government working regulations should be strict and practical.The best thing will be if Pakistan runs the project itself.but again its not the technical aspect that is difficult but the management side.Rampant corruption just ruins everything.
    So lets hope for a miracle. Recommend

  • Anonymous
    Jan 15, 2011 - 1:45AM

    I will also agree to the opinion of Mr. Rehan Baloch. Why any company regardless to which country they belong too, should come far away and work in the terrain of Balochistan? It is all just a matter of personal interests. Unlike foreign companies, the responsible heads in the Government only have short term interests in their eyes and mostly personal interests. National interests? who cares for them? One should ask, what Balochistan has earned infact, learned out of Sandak project? It is a pity and shamefull to express that foreign companies are awarded contracts to enter into mineral enriched lands of Pakistan eventually depriving it from its valuable resources at the cost of the nation and at the cost of this country. Ask one thing to ourselves, why these companies are allowed to take the digged ore away? if they can offer government financing over infrastructure development projects then instead they can also offer financing of ore refining projects at the mining site. Government should negotiate with all these companies options like transfer of technology, development of the region, employment, building local expertise eventuelly selling the same to other neighbouring countries etc. It is the duty of the “elected” Government to take measures and enter into only such contracts which does not allow foreign companies to go away with the mineral wealth of this nation and sign only such contracts in which the wealth of the nation stays within the nation.
    May Allah save Pakistan from corruption, corrupt thinking and corrupt people and may one day every individual of this nation shall really feel proud of him/herself. Recommend

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