Chagai exploration activities – SC seeks opinion on strategic aspects

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ISLAMABAD – The Supreme Court on Tuesday directed the deputy attorney general to consult the defence authorities on the strategic aspects of ongoing exploration and mining activities in Chagai area of Balochistan and inform the court about his findings.
A three-member bench of Chief Justice Iftikhar Muhammad Chaudhry, Justice Muhammad Sair Ali and Justice Ghulam Rabbani was hearing a number of petitions against the lease of Reko Diq gold and copper reserves to Tethyan Copper Company in violation of law. During the hearing, Khalid Anwar, lawyer for TCC, told the court that his client had followed all rules and regulations while obtaining the Reko Diq contract.
He said that military authorities were also provided a thorough briefing before the award of the contract and they did not express any reservations over the matter from the defence point of view. To a court query, he said there was nothing in black and white about the said briefing.
He said nuclear aspect of the area had already been imbedded in the mining rules and the strategic point of view was also attended to. He said the military authorities did not interfere into the mining activity because of its economic impact on the province. However, the chief justice said prima facie, due security and strategic interest were not kept in mind while awarding the contract.
The court said that it had gone through the relevant record but there was not a single provision of law or guideline for the protection of such a strategic area. It said the government should have also considered this aspect and directed Deputy Attorney General Mazhar Ali to take up the issue with the authorities concerned for their point of view.
Appearing on notice, Balochistan Advocate General Dr Salahuddin Mengal said he would submit a feasibility report of the project to the court. He, however, requested the court to not make it public, which was accepted. An official of the Balochistan Development Authority (BDA) told the court that after 2000, mining rules were framed and the contract for the award of lease was subject to the feasibility report.
He said rejection of the aspirant party was possible, but authorities concerned had to provide reasons for it. Abdul Hafeez Pirzada, lawyer for BHP Minerals said the Balochistan Development Authority and BHP had reached an agreement in June 1993. He said the agreement was also approved by the then chief minister for which the provincial government had also sought approval from the federal government.
The chief justice noted that the chief executive authority rested with the provincial government, not with the governor or the Balochistan Development Authority, who seemed to have executed the agreement. To a court query, about relaxation of rules for mining companies, Pirzada said relaxation was a special concession in special circumstances. To another query, he said proper legal opinion was sought about the agreement and the
Law Department was also taken on board.
Later, the court adjourned proceedings until today (Wednesday).