ISLAMABAD – Reko Diq mines are the property of Balochistan and the elected government of the province alone has the right to enter into a contract regarding the resources, Chief Justice of Pakistan (CJP) Iftikhar Muhammad Chaudhry said on Wednesday.
The CJP also observed that if Balochistan was given its due share under the current National Finance Commission Award, it would have been the wealthiest province of the country. He said the provincial government did not approach the court to settle the Reko Diq issue and asked Khalid Anwar, counsel for Tethyan Copper Company (TCC) to conclude his arguments by today (Thursday).
However, Anwar requested the court not to give a timeframe as he would conclude his arguments as soon as possible. The court again asked him about the transparency of the contract and noted that immediately after having received their licences, they had approached for relaxation in rules.
A three-member Supreme Court bench comprising the CJP, Justice Muhammad Sair Ali and Justice Ghulam Rabbani, was hearing a case against leasing of Reko Diq gold and copper mines in Balochistan worth over $260 billion to a foreign exploration and mining company, TCC, a Canadian and Chilean consortium of Barrick Gold and Antofagasta Minerals, by the federal and the provincial governments in violation of law.
Anwar said the BHP, an Australian company, had invested a large amount of money on the Reko Diq project when nobody was ready to invest, which was a gamble and afterwards it was not willing to invest more so they sought relaxation in the rules to go into a joint venture.
He said the Balochistan government was not in a position to run the project solely. Earlier, Fakhruddin G Ebrahim, another counsel for TCC told the court that they were ready for an out-of-court settlement, for which he requested the court to adjourn the case. Balochistan AG Amanullah Kanrani submitted that if the decision of the Balochistan High Court was set aside, it would be beneficial for the foreign company but would be a disaster for the provincial government.
He submitted that the contract was about to cease as it was awarded without the permission of the chief minister. Justice Ali observed that if the government did not receive any fee, it was its own fault. Anwar said all such contracts were made in the name of the governor or the president, adding that the advocate general was raising verbal objections which had no legal effect. The court adjourned until today (Thursday).
Only Balochistan govt can decide Reko-Diq contract: CJP
