Pakistan Today

On Reko Diq

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

Exit mobile version