The government claimed on Sunday that it has spared the country from an $11 billion fine in the Reko Diq case by resurrecting a project to extract massive gold and copper riches from the Balochistan site.
The federal and Balochistan governments, as well as Antofagasta PLC and Barrick Gold Corporation, have struck an agreement in principle on a framework to resurrect the Reko Diq project and a roadmap for Antofagasta to depart it.
The signing event was observed by Prime Minister Imran Khan. Speaking at the event, he stated his optimism that the investment would be the start of a wave of large-scale investments in Balochistan that would improve the province’s residents’ quality of life.
PM Khan afterwards commended the country, particularly the people of Balochistan, on the agreement for the development of the Reko Diq mine in a series of tweets.
Meanwhile, the Balochistan cabinet accepted the accord in a special session, calling it a game changer for the province.
Later, Minister for Finance Shaukat Tarin, speaking at a press conference alongside Energy Minister Hammad Azhar and Balochistan Chief Minister Mir Abdul Quddus Bizenjo, said that after signing the agreement, Pakistan would not only avoid the $11 billion penalty, but would also have the opportunity to explore the world’s largest gold and copper reserve.
He claimed that $10 billion will be spent in the Reko Diq project, which would result in the creation of 8,000 new employments for locals. According to the revised deal, Barrick Gold Corporation would get 50% and the Balochistan government will receive 25%, with the remaining 25% divided among state-owned firms — Oil and Gas Development Company (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Pakistan (GHPL).
Mr Tarin remembered that in 2006, the federal and Balochistan governments inked a deal to harvest gold and copper from the Reko Diq mine with Canadian business Barrick Gold and Chilean firm Antofagasta. According to the agreement, the two international businesses received 37.5 percent each while the Balochistan government received 25 percent.
According to the minister, this project would help Pakistan, particularly Balochistan, for more than a century, with a total value of more than $100 billion.
Energy Minister Hammad Azhar described the agreement as a “historic day” since it not only averted an $11 billion penalty but also provided the country with a new chance. By executing 32 of the FATF’s 35 standards, he claimed the “historic victory” had prevented the nation from being blacklisted.
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