On Reko Diq

By
PakistanToday
-
24
149

It is said that investors are like migratory birds and wherever they find the best environment, they fly away. There is no denial of the fact that FDIs play a vital role in boosting an economy. Any country that want to prosper and be economically stable, should pave the way to attract foreign investors in their country by pursuing open economic policies.

But in the case of Reko Diq Mining Project, the phenomenon is quite different. This is a US$ 3.3 billion investment project that promises to build and operate a world class copper-gold open-pit mine in the northwest area of Balochistan. The project has an estimated mine-life of 56 years along with immense opportunities of employment and business. This project has the potential to kick-start the mining sector in the province.

It is sad to note that the government of Balochistan, with its shortsightedness, has rejected the mining license application of TCC that has invested so much time, money and resources to bring Reko Diq on the map of the global copper mining industry.

According to media reports, the provincial government did not even bothered to negotiate with TCC on their feasibility report and backtracked on the Chagai Hills Exploration Joint Venture Agreement (CHEJVA) that was signed 17 years ago and was even endorsed by the Supreme Court of Pakistan in its hearing of the case this year.

CHEJVA offered 25 percent equity share to the Balochistan government without any financial responsibility in the risk investment of the exploration. The Balochistan Mineral Rules 2002 only require mining companies to pay royalties and taxes to the government with no obligation of equity sharing. Hence, the CHEJVA deal seems to be more beneficial for the government and people of Balochistan and I think it should have been treated as a model for other investors.

I fail to understand why, and on whose behest, the chief minister of Balochistan and the nuclear scientist Dr. Samar Mubarakmand are bent upon tarnishing the reputation of Pakistan in front of foreign investors by sabotaging a seventeen year old joint venture agreement by creating false propaganda against the investor and creating legal and quasi-legal hurdles in its way to mine copper and gold in the area which was allotted to it seventeen years ago and where it has invested more than $220mn on exploration in partnership with the provincial government of 25 percent equity which has not invested a single penny in it so far.

Now the company has gone for international arbitration to safeguard its legal rights which are in line with CHEJVA Agreement and Balochistan Mineral Rules 2002. The need of the hour is that the government should take some serious and immediate steps to resolve this matter impartially.

This is a great opportunity for the government to set an example and ensure its credibility by promoting investor-friendly economic policies which will energise our economy and have a positive impact on socio-economic development of the country.

SHAHZAD ALI GILL

Rahimyar Khan

RELATED ARTICLESMORE FROM AUTHOR

24 COMMENTS

  4. fuly one sided propagande article on nehalf of the mining giants who have a poor reputation of enviormental issues and stealing the wealth of poor countries. Company wanted to mine and send raw paste outside pakistan without any over sight . They have a history of mining thousands of to ns and report just a few tons. So the 25% paying to balochistan government will be a fake front. While pakistan is forced to import gold and copper from outside its own resources of the metal will be sold to other countries. its time baloch gets to prosper from their own resources and not foreign companies.

    • Yes the Balochistan government must do this project itself. Barrik is a very bad reputation company and will steal Pakistan's wealth from it.

  5. Fully agreed with Ali Noor Baloch. Foreign investments is welcome as but not at the expense of the people of the Baloch Nation. we will not sell our resources at pennies.

  6. Good luck mining a world class copper/gold porphyry deposit with spades and pick axes. It would seem the Baloch people are destined to live in poverty forever.

    • This is the problem with people in the west! They think only they have the technology! Pakistan is fully capable of mining its resources itself and does not not any outside help! Specially if they get 75% and we only 25%

  9. forget about who is right and and who is wrong . . . . just look at the Wealth Sharing percentage. 25 and 75. lolzZ seems like one is paid from his own money. its clear exploitation of the needs of Third World Countries. if they do not have the right technology it does not mean one should take advantage of it in a way like TCC and other such companies are doing all over the poor world.
    sucking the blood from the poor and then donating them a pent from their own blood.
    @ Miner – – – > Pakistan did dig its Uranium Mines with the same Spades and picks. instead of 56 years we may take 5600 years to dig these mines, but at least we will be able to get the 100% not 25% of share (in fact donation).

  10. No foreign companies, not Canadian or Chinese.

    Only Pakistani staff.

    Raw ore must be smelted in Pakistan.

    Then the copper and gold must also be manufactured into finished goods in Pakistan.

    This will increase the skills and technical expertise of Pakistanis.

    This will provide plants and jobs for Pakistanis.

    This will provide Tax Revenue for Baluchistan and Pakistan.

    This is the BEST and ONLY way to benefit Pakistan and all of its citizens – NO to International Mining Companies.

  12. __ WHO MADE THE DEAL.? THE GOVERNMENT OF BLOUCHISTAN OR SOME ONE ELSE.?__ IT IS A INTERNATIONAL CORRUPTION CASE.WHO GOT KICK BACK AND HOW MUCH? WE SHOULD MAKE AN INQUARY BY INTERPOLE OR PAKISTANI AGENCIES. ETC ETC

  13. HI,INDIA IS DIGING OUT HIS COAL BY THEIR OWN HAND FOR LAST 65 YEARS, AND ARE PROSPERIOUS THAN PAKISTAN.WHAT A SHAME.WE DO NOT WANT TO WORK HARD JUST WANT TO GIVE AWAY TO OTHER COUNTRIES LIKE CHILI FOR LITTLE COMFOT FOR SOME CORRUPT PAKISTANIES.WE ALL SHOULD MAKES OUR HAND DIRTY AND WORK HARD.COME OUT DIG IT OUR SELF EVEN EVERY ONE HAS TO WORK HARD AND LONGER HOURS. JUST DO IT.

  15. All over the world—its a simple rule of 'finders keeper'—meaning whoever takes the risk of exploration has the right to mine it. How can govt. take away thr rights of genuine investors who took the risk exploration ar Reko Diq.
    As for 25% share of the govt.—-those who critize it dont seem to know that even under mining rules of Balochistan, there is no option of govt.'s share in equity. Govt. recives taxes and royalties. No other licence in Balochistan has 25% share of the govt.and is 100%owned by the licence holders.This 25% share in addition to taxes and royalties shouyld be emulated in other licences instead of being critisized.
    So please dont go into the politics of this issue—this project could have changed the face of mining in Pakistan—but alas thanks to the vision of our leaders, its not happening

  16. Fully agreed with the views of Mr. Shahzad Ali Gill and Ms. Zubaida Jalal. People here in Pakistan are so much emotional and charged that they don't analyse the facts and figures. They just walk the talk and don't have their point of view on certain issues due to the lack of knowledge.

  17. Well done Shahzad Gill! Happy to see that at least someone has shown the courage to write on that issue on the basis of facts; not on the basis of sentiments. Khuda hamaray hukmaranon ko shaoor dy!! Aameen

  18. Hahaha, yar theek kehtay ho, CM Balochistan ko to joker hona chahiye, kasam se 🙂 I assure you that CM even dont know the meaning of FDI.

  19. As an honest citizen of of Pakistan, we need to analyze the exploration of last 65 years.
    The only exploration is Gas. The total revenues recovered from gas are far too small
    than the investment on research in last 65 Years. God help us, our leaders do not have
    any vision for the development of Pakistanis as a whole. Our leaders have only one
    vision, that is lutto tay phutto.
    We need to be more vigilant and conscious about foreign investment. Once it has been agreed between an investor and the Govt. institutions, it must continue untill
    some thing achieved. We know nothing about the subject, but we start commenting
    on others. The people who have invested $220.00Million have every right to continue
    until they concede any result.
    The people who do not trust on foreigners, they have all the Pakistan open for their
    research and exploration. Do not waste the time and go ahead right now and start
    exploration, and show the world that you can help your self.
    The international agreements must be maintained. So that the the trust us. I believe
    our leaders who say the promise is not a verse of the Quran, can not let the country
    develop
    Thanks
    Nasrullah Khawaja
    Sialkot.

  20. The above comments are sufficient, I do not want to decrease increase or disown my
    statement

  21. one sided opinion, and that is the biggest problem in our country. every one think that there opinion is Gods word

  22. Please do right about the social and economical impacts of this project on country's economy. If the government take some serious and sane steps then a lot of Baloch youth can get good jobs and improve their standard of living as well as revamp the basic infrastructure of the country. I Appeal to the CJ of Pakistan please do take some notice. For God sake, come forward and save our Balochistan from complete disaster, poverty, extremism and terrorism by providing the employment opportunities in the province before its too late!

Comments are closed.