Syed Ali Shah :
QUETTA: Balochistan Cabinet on Saturday approved the proposed agreement and settlement regarding the Reko Diq Project. Chief Minister Balochistan, Mir Quddus Bizenjo chaired a special meeting of the provincial cabinet.
“The cabinet thoroughly reviewed all aspects and points of the agreement”, an official handout issued said. The provincial cabinet expressed satisfaction over the stance of the Balochistan government regarding the multi-billion dollars copper and gold project. All members of the provincial cabinet attended the special meeting, which made this important decision regarding the proposed agreement.
#BalochistanCabinet approves proposed #RekoDiq agreement https://t.co/40GgRa6azS pic.twitter.com/NQJS4XvmNr
— Quetta Voice (@VoiceQuetta) March 19, 2022
Reko Diq to guarantee the development of Balochistan
Reko Diq project would guarantee an end to the prevailing sense of deprivation and backwardness of Balochistan, the statement stated. “It would be a game-changer”, it mentioned.
Secretary Minerals briefed the Cabinet about the benefits of implementing the proposed agreement and project for Balochistan and its people. Full details of the agreement and settlement will be released after a meeting chaired by the Prime Minister on Sunday (tomorrow).
New agreement was signed between Pakistan and Barrick Gold
According to sources, a new agreement was signed by representatives of the federal government and Balochistan with a delegation of Barrick Gold led by Chief Executive Dr. Mark Bristow. As per the terms of the new agreement, the Reko Diq project shall be revived and developed by Barrick Gold in partnership with Pakistani entities.
50 percent of the new project’s shares will be owned by Barrick Gold, while the remaining shares shall be owned by Pakistan, divided equally between the federal government and the provincial government of Balochistan.
The federal government’s shares of 25% shall be divided equally amongst three state-owned entities (SOE), namely Oil & Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Pakistan Limited (GHPL).
BA had discussed Reko Diq in an in-camera briefing
This decision has come after a 10-hour long discussion during an in-camera briefing about the multi-billion dollar project Reko Diq in the Balochistan Assembly. Lawmakers from the opposition and treasury benches had thoroughly discussed the proposed agreement and reviewed all aspects of the project.
Reko Diq
On July 29, 1993, BHP Minerals (BHP) and the Balochistan Development Authority (BDA) had signed the Chagai Hills Exploration Joint Venture Agreement (CHEJVA). Subsequently, on Nov 23, 2006, the TCC had bought BHP’s interests in CHEJVA for US$ 240 million and became a party to the CHEJVA pursuant to a Novation Agreement with BHP and the Government of Balochistan.
On August 26, 2011, the TCC had submitted its feasibility report and an application for mining lease which was rejected by the Licensing Authority on November 15, 2011. On November 6, 2011, a petition was filed before the Supreme Court asking the top court to order the Balochistan government to refrain from issuing a mining license in an arbitrary and unlawful manner. On January 6, 2013, the Supreme Court held CHEJVA to be void ab initio.
TCC instituted proceedings before ICSID
On December 12, 2011, the TCC had instituted proceedings before the ICSID for alleged violations by Pakistan of Australia-Pakistan BIT, 1997; and, before ICC for alleged breach by the Balochistan government of contractual obligations under CHEJVA. The ICC Tribunal had stayed its proceedings in deference to the ICSID proceedings.
On February 12, 2016, the Tribunal had issued a draft decision on jurisdiction and liability and held that (i) it has jurisdiction over TCC’s claims; (ii) TCC had made an investment in Pakistan; and, (iii) Pakistan has expropriated TCC’s investment in Pakistan and breached its BIT obligations.
