An eleven-member committee has been formed by the Balochistan Assembly to take up the issue of the lease of the Saindak gold-copper project to a Chinese company with the federal government.
According to media reports on Saturday, the committee includes lawmakers from the government as well as opposition, including Balochistan Finance Minister Arif Jan Muhammad Hassani, Balochistan National Party (BNP) leader Sanaullah Baloch, Information Minister Zahoor Buledi and Khaliq Hazara of the Hazara Democratic Party.
In October last year, Metallurgical Corporation of China (MCC) and state-owned Saindak Metals Ltd (SML) had signed an agreement under which the Chinese firm will continue operating the Saindak copper-gold project for another five years on existing terms. The two companies signed in 2002 a 10-year contract, which was extended for five years in 2012. The contract was to end on Oct 31. The government has always kept the terms of the contract confidential.
BNP leader Sanaullah Baloch had raised the issue on October 4 during a session of the Balochistan Assembly.
“The Balochistan government was completely bypassed while leasing out the project to a Chinese company,” Baloch said after the formation of the committee.
The federal government gets a 50 per cent share in the profit of the Saindak project while the rest goes to the Chinese company. Of its 50pc share, the federal government keeps 20pc profit and passes on 30pc earnings to the provincial government.
In addition, Balochistan receives a 5pc royalty over the Saindak copper-cum-gold project.
The committee will devise ways to seek a reasonable solution for handing over the Saindak project to the province, in line with the 18th Constitutional amendment, a notification released by the Assembly said.
“Balochistan must be kept on board with regard to all decisions,” Baloch reiterated.
