Balochistan Advocate General Amanullah Kinrani on Wednesday told the Supreme Court that BHP, the world’s leading copper mining company, which had been given a mining lease for the discovery of gold and copper reserves in Reko Diq during 1990s, was not registered under Pakistani laws.
He was appearing before a three-member SC bench – comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Gulzar Ahmed and Justice Azmat Saeed – that resumed hearing of a petition moved by late Mualana Abdul Haq.
In response to the bench’s remarks, Kinrani said the BHP had not been incorporated in Pakistan as a foreign minerals mining company.
The chief justice observed that the Balochistan government should have known the fact as all foreign companies required approval from the Board of Investment.
He told Khalid Anwar, counsel for Tethyan Copper Company (TCCP), that nothing like a mining agreement existed prior to 1996 with the BHP, but a request for relaxation of rules had been submitted.
He said the relaxation was sought when there was no agreement. “Show us any exploration agreement from any part of Pakistan with similar precedent. We will examine the instant matter on touchstone of the Pakistani laws.”
Khalid Anwar said there was no such requirement when Chagi Hills Exploration Joint Venture Agreement (CHEJVA) had been reached.
The CJ said, “Do not give such a free hand, we are a sovereign country.”
Anwar contended that the BHP was not entitled to such an agreement as it did not make any discovery in the area. He said the TCCP had made a discovery in 2006 so why was it blamed for the acts of the BHP.
Reading out the Companies Act, he said under its provisions, Pakistani exploration companies did not require registration but it was a requirement for the foreign companies while his client TCCP was a subsidiary of the TCCA and a Pakistani company.
The counsel apprised the bench that the negotiations for reaching an agreement for Reko Diq mining venture started way back in 1993 and after three years of elaborate discussions involving all the stakeholders, a consensus draft was agreed upon which had all the transparency. He said the BHP made a generous offer of 25 percent to the provincial government which was unprecedented in the exploration history at that time.
Refuting claims about corruption or any underhand deals, he said relaxation of rules did not amount to amending of Balochistan Mineral Rules of 1997.
Abdul Hafeez Pirzada, counsel for the BHP, apprised the bench that they were contacting with their clients but the time difference was a matter and would assist the court with relevant record.
The Balochistan AG apprised the bench that Barrister Aitzaz Ahsan was also engaged by the provincial government to represent it in the instant case and sought an order in this regard.
The chief justice told him that the court had always welcomed everyone and had not stopped Aitzaz from appearing.
Further proceedings were adjourned until Thursday (today).
