Reko Diq project: Barrack Gold agrees to agreement with Pakistan Reko Diq compensation and financing
An agreement has been reached between government of Balochistan province of Pakistan & a company called Barrack Gold Corporation on Reko Diq largest gold & copper project in Chaghi distric under which it has been decided to restart the project Reko Diq.
Reko Diq : Pakistans finance minister Shaukat Tareen claimed in a press conference on Sunday that the Canadian company had decided to invest 10 10 billion in addition to paying 11 11 billion in fines Reko Diq.
Reko Diq : statement issued by the Balochistan government About Reko Diq on the amount of the investment stated that the amount was Rs 8 billion while Barrack Gold didn't comment on the amount of the investment and the amount of the fine. Reko Diq However it said the fine would be reimbursed only if all conditions were met.
Work on the Reko Diq project in Chaghi a border district of Balochistan bordering Iran & Afghanistan has been stalled for years.
Due to this dispute foreign Thietian Copper Company had approached 2 international arbitration forums one of which had ruled in their favor and imposed a fine on Pakistan.
In addition according to former Balochistan Chief Minister Jam Kamal Khan Balochistan government had to spend a total of more than seven billion rupees on litigation.
According to government officials, the government had held talks with two shareholders in the Thietian CopperS Company of which a Canadian company called Barrack Gold has agreed to work on project again.
A statement issued by Balochistan government said The project will bring 33% financial benefits to Balochistan as a whole.
P M of Pakistan in his message on Twitter congratulated the nation & the people of Balochistan on this agreement.
Prime Minister said that this achievement was achieved after 10 years of legal battle & negotiations. He wrote-that a fine of about Rs 11 billion has been paid and Rs 10 billion will be invested in Balochistan creating 8,000 new jobs.
If work on Reko Diq continues as planned, it will start producing in five to six years.
A statement from Barclays Gold stated that details of this agreement are as follows : Mark Bristow president and chief executive officer of Barrack Golds congratulated all parties on reaching agreement and said that if work went according to plan production from project would begin in five to 6 years.
The statement said that Barrack Gold will play the role of operator in project and it has been given a lease for mining in this regard & other licenses and other rights have been granted in this regard.
According to the statement Supreme Court in addition to the federal & provincial governments will be involved in ensuring transparency of all the agreements that will be made later in the project.
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Statement also said that if all conditions of the agreement were met we would reimburse the fines.
History will not forgive us if we make a mistake
According to a Balochistan government statement special cabinet-meeting chaired by the Balochistan chief minister approved Reko Diq project agreement.
On Sunday Secretary Minerals & Mineral Development briefed the Cabinet on the details of the agreement & the financial benefits to Balochistan from the Reko Diq project.
According to the statement cabinet was informed that All taxes royalties and CSR of Balochistan have been protected in the agreement.
The statement said that a special package for the development of area has also been included in agreement while project will provide 8,000 employment opportunities.
The project company will invest 8 billion in the Reko Diq project largest investment in the country history he said. All provincial taxes will apply to project.
Addressing meeting Chief Minister of Balochistan said that we have taken a firm stand & succeeded in getting 25% participation for Balochistan without spending any money.
The government is fully aware that Reko diq is the future of our Nation future generations he said. History willnot forgive us if we make mistakes.
CM Blochistan said We are grateful to Prime Minister the Chief of Army Staff & Federal Minister for Finance for agreeing to our terms and conditions.
He said that the final ratification of the Reko Diq Agreement & commencement work would strengthen the confidence of foreign investors in Pakistan & Balochistan & they would be attracted towards Balochistan.
He said that the youth of Balochistan were always incited to slogan offeeling deprived. The federal & provincial governments have ensured a viable agreement in line with the wishes of people.
He said that all institutions which have put this controversial project back in right direction are commendable & we have succeeded in creating impression at international level that there is a responsible government in Balochistan which is allocating resources of Balochistan to world. Is opening in front of.
Where is Rekodik located in Balochistan?
Reko diq is located in Chaghi district of Balochistan. According to some reports Reko Diq is 1 of the largest deposits of copper & gold in Pakistan & 1 of largest deposits in world.
Near Reko Diq s Sendak where a Chinese company has been working on copper & gold deposits for more than a decade. Geologists call Chaghi a show case of minerals due to discovery of a large number of other minerals in Chaghi along with other deposits of copper & gold.
One of the largest copper & gold mines in the world.
The mineral deposits in Chaghi district of Balochistan are claimed to be 1 of largest coppers & golds mines in the world which have not been fully commissioned till date.
TPakistani government launched Reko Diq project 28 years ago to search for these reserves but instead of benefiting the country it fined it not only six billion but also 2 international arbitration bodies for settling investment disputes. There have been significant costs involved in litigation.
Last year an international arbitration tribunal fined Pakistan nearly ًًsix billion in a multi million dollar Reko Diq gold and copper project in Balochistan province.
How much has Reko Diq litigation cost so far?
According to the information provided by the Department of Minerals Government of Balochistan during last 7 years a total expenditure of Rs.
The details of these expenses are as follows:
Between 2013 & 2014, Rs. 481.1154 million was paid
1 billion seven crore 30 lakhs during 2014 to 2015
In 2016, 23 crore 84 lakh four thousand two hundred rupees
61 crore in 2017 Rs. 82.89 crore during 2017 to 2018
An additional Rs 52 crore in 2018
One billion six crore 42 lakh 50 thousand rupees in 2019-2020
52 crore 50 lakhs from 2020 till now
A former government official involved in the Reko Diq case said that while the bulk of money was spent on lawyers fees it also included expenses incurred by government & government officials on trips to hear on these forums.
Cherry Blair wife of former British PM Tony Blair has also represented Pakistan in these cases.
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