Islamabad: The Economic Coordination Committee (ECC) has approved two important agenda items related to the Reko Diq copper and gold project, paving the way for its early start, news sources reported on December 12.
The federal government and the Balochistan government entered into an out-of-court dispute settlement with Tethyan Copper Company (a consortium of Barrick Gold Corporation and Antofagasta) in relation to the Reko Diq project in Balochistan.
As per the terms of the settlement, the federal government has to clear its liabilities to Antofagasta, and the ECC has now allowed the Finance Division to direct three state-owned companies to deposit USD 22.71 million in an escrow account by December 15. In addition, the ECC has allowed the Finance Division to arrange the interest payable for the Balochistan government’s share of USD 8.51 million.
Furthermore, in a related development, Balochistan Chief Minister (CM) Abdul Qudoos Bizenjo announced that the Balochistan government will receive more than 38% of the revenue from the project, estimated to be around PKR 200 billion (USD 1.83 billion).
He said that the funds would be used to strengthen the provincial economy and the population’s welfare. The minister said that the project is expected to provide more than 8,000 jobs and serve as a gateway for foreign and local investments in the province.
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