Islamabad: The government of Pakistan on Sunday (March 20) inked a new Reko Diq mineral exploration agreement with Barrick Gold Corporation – a Canadian corporation – and the Balochistan government, according to press reports. Under the terms of the arrangement, the Reko Diq project will be revived by Barrick Gold and Pakistani entities.
The international firm would control 50% shares of the exploration, while the federal and Balochistan governments would own 25% each. Reportedly, Prime Minister (PM) Imran Khan was present to witness the signing ceremony. He congratulated the Baloch people on their historic achievement. He stated that the mining company would invest USD 10 billion in Balochistan, creating as many as 8,000 jobs for locals. Furthermore, he said that Reko Diq is the world’s largest gold and copper mine, attracting USD 10 billion in Foreign Direct Investment (FDI).
I congratulate the nation & ppl of Balochistan on successful agreement with Barrick Gold for development of RekoDiq mine after 10 years of legal battles & negotiations. Penalty of approx $ 11 bn is off set, $10 bn will be invested in Balochistan creating 8000 new jobs.
According to the exploration deal, the federal government’s stake would be divided among three 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 wholly owned and managed by the provincial government.
It is worth noting that the Reko Diq deal with Tethyan Copper Company (TCC) was overturned by the Supreme Court (SC) ten years ago and was later challenged in the International Court of Arbitration. As a result, Pakistan was eventually fined USD 11 billion by the court for breach of the agreement. However, the newest deal has offset the penalty, and the contract has been renewed under revised conditions.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
