Amongst dozens of on-going mega development projects in Balochistan, Reko Diq gold and copper mining project is considered to be a big national strategic asset that would transform Balochistan.
According to experts involved in mining and exploration, some 12.3 million tons of copper and 20.9 million ounces of gold lie in the Reko Diq area (EL-5) in the Chaghi area of Balochistan.
The discovery enticed mining magnates to start “behind-the-scene lobbying” for getting the contract from Balochistan Development Authority (BDA). However, the BDA gave the licence for EL-5 to a Canadian and Chilean company “Tethyan Copper Company” (TCC). Under the agreement, 75 per cent shares were given to TCC and 25 per cent to the BDA. Reports emerging from various sources indicate that the US $ 52 billion of natural deposit will be sold for just US $ 08 billion to TCC.
The mind-boggling question is why 75% of reserves are being given to get 25% back after investing 25% in (EL-5) project?
According to reliable estimate, only a small part of the Reko Diq gold and copper mines (EL-5) have deposits worth US$270 billion. Two additional licences for EL-6 & EL-8 deposits were given to the same company (TCC) on a 100 per cent ownership basis and without any share to the government of Pakistan.
The people of Balochistan feel dissatisfied by this unjust and controversial licence (EL-5) to TCC at throw-away economic returns. It is generally believed that the contract to TCCP has been grossly undervalued and the actual project estimate should be in the billions of dollars.
Based on the dicey dealings of TCCP echelons, the government of Balochistan announced the cancellation of the Reko Diq agreement and the project was handed over to eminent nuclear scientist, Dr Samar Mubarakmand.
As Pakistan has to issue mining licences to international or indigenous bidder, therefore, following two points need to be looked into:
a) revenues to acquire mining infrastructure.
b) provision of local expertise to explore and develop deposits for export in finished form.
Keeping in view these two factors, a reliable foreign company be hired that should offer 70-80 per cent share extracted from these treasures.
MF BUTT
Gujranwala
