ISLAMABAD: The federal cabinet is likely to approve handing over of the Saindak Copper Gold Project (SCGP) to Balochistan government after the agreement expires with the Chinese company in October, Pakistan Today learnt on Monday.
A meeting of the federal cabinet scheduled to be held tomorrow (Tuesday), with Prime Minister Shahid Khaqan Abbasi in the chair, is expected to take much-awaited steps towards the transfer of the SCGP to Balochistan besides giving an approval to certain amendments in Rules of Business 1973.
According to eight point agenda of the meeting, the meeting will get briefings on important matters from the Revenue Division, Cabinet Division and National Food Security Division.
Besides taking decisions on the proposed amendments in compliance with the Prime Minister’s Global SDG’s Achievement Programme, amendments in the Rules of Business 1973; Cabinet Decision-Amendments in the Rules of Business 1973; amendment in Rule 17(1) of Rules of Business 1973; exemption of two road projects of the Ministry of Kashmir Affairs & Gilgit-Baltistan from applicability of the Public Procurement Regulatory Authority Rules 2004; and transfer of Saindak Copper Gold project to Balochistan will be deliberated.
Prior to the start of the current year, the ruling PML-N government was not willing to hand over Saindak project to Balochistan government till 2017 as the federal government had invested Rs 29 billion in the project. The federal government had termed the investment a loan while the Balochistan government argued that the federal government’s investment cannot be termed as a loan.
Furthermore, revenues generated from the Saindak project are split halfway between Pakistan and China while only 5 per cent is given to Balochistan. However, now the centre seems willing to transfer the SCGP to Balochistan after the expiry of an agreement with Metallurgical Corporation of China (Ltd).
Earlier this year, then petroleum minister Shahid Khaqan Abbasi in a meeting with Balochistan CM Sanaullah Zehri agreed to hand over the project to the provincial government following the expiration of the agreement with the Chinese company.
The Metallurgical Corporation of China (Ltd), in its 16-year period, failed to honour its commitments, including the establishment of a refinery for which it offered soft loan and later on backed out; and taking the blister copper to China for refining without any check.
The discovery of copper deposits at Saindak was made in the 1970s in collaboration with a Chinese engineering firm. Saindak Copper-Gold Mine is located near Saindak town in Chaghai district of Balochistan.
In 2002, the federal government invited foreign investors to provide funding for the project and awarded the mining project to the Metallurgical Corporation of China (Ltd) for a 10-year lease, which was later extended to another five years.
Reportedly, the federal government has not paid Rs 4bn and 370million out of profited money from Saindak project so far.
It is worth mentioning that the provincial government of Balochistan has been receiving a nominal royalty as rest of the revenue, all taxes or share of profit were retained by the Federal Government denying other benefits to the province.
