After successfully resolving the longstanding dispute with Tethyan Copper Company (TCC) over the development of copper and gold mines in Chagai, popularly known as the Reko Diq dispute, Prime Minister Imran Khan attended a signing ceremony between the Government of Pakistan, the Government of Balochistan, and Barrick Gold Corporation of Canada.
Representatives from the federal and Balochistan governments signed a new deal with a Barrick Gold delegation led by Chief Executive Dr. Mark Bristow.
The Reko Diq project would be reactivated and developed by Barrick Gold in collaboration with Pakistani businesses, according to the conditions of the new deal. Barrick Gold will control 50 percent of the new project firm.
Pakistan will possess the remaining 50% of the company, which would be divided equally between the federal government and the province government of Balochistan.
The federal government’s 25% stake would be distributed equally among three federal government state-owned enterprises (SOEs), namely Oil & Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Pakistan Limited (GHPL).
Balochistan’s share will be held by a firm completely owned and controlled by the Balochistan government.
The federal government would bear the Balochistan government’s share of capital and operating expenses for the project as part of the prime minister’s vision for Balochistan.
Nearly $10 billion would be invested in Balochistan to build the project, including $1 billion for social uplift projects such as roads, schools, and hospitals, as well as the establishment of a mining technical training center.
Over 8,000 new employment will be created as a result of the investment. Balochistan will be the greatest beneficiary of foreign direct investment in Pakistan as a result of this project, and the Reko Diq project will be one of the world’s largest copper and gold mining ventures.
The government is also considering establishing a smelter to maximize the exploitation of the country’s mineral resources.
After multiple rounds of negotiations over the last three years, the agreement was reached. The prime minister established a committee in August 2019 to guide the negotiations with the goal of early mining construction. International consultants aided the federal and provincial governments in this effort.
The government will take the case before parliament and the Supreme Court to ensure that it complies with all applicable laws.
During his speech, the prime minister emphasized the importance his government places on the development of Balochistan and the elevation of underprivileged areas.
He expressed the expectation that the investment would be the start of a wave of large-scale investments in Balochistan that would improve the quality of life for ordinary Baloch inhabitants.
The prime minister praised the negotiating team’s efforts to reach a transparent and beneficial deal for the people of Balochistan.
A delegation from the Barrick Gold Corporation had already visited the prime minister. Wendy Gilmour, Canada’s High Commissioner to Pakistan, was also present.
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