Key details of the agreement are still under wraps, but Profit has learned from sources close to the deal that a consortium of local companies will be taking the lead and not the government. Shamsuddin Shaikh a veteran of mining operations, who had worked on the Thar coal project prior to joining National Resource Limited (NRL) as its CEO. National Resources Pvt Ltd (NRL) is a joint venture founded by six of Pakistan’s most powerful business families with the primary goal of developing the Reko Diq reserves. The Tethyan Copper Company could not be reached for comment.
If the agreement goes through, it will mean the Government of Pakistan could be off the hook for $5.976 billion in damages that it had incurred when it lost the arbitration launched by TCC following nearly a decade of legislation. All appeals had been exhausted and TCC was moving towards seizure of assets belonging to the Pakistani government abroad. In early 2021, the case made headlines when TCC moved to seize PIA’s Roosevelt Hotel and the Scribe Hotel in Paris, assets belonging to PIA Investments whose shares are held in the British Virgin Islands. That case was ultimately decided in Pakistan’s favour by a BVI court and the provisional charge attached against the hotels by the court was removed by the summer of 2021. But the case showed the dangers that the government was now facing with TCC empowered to find and seize assets belonging to the government anywhere in the world.
The history of Reko Diq has been turbulent to say the least, since its inception it has been mired in controversy. These delays can partly be attributed to the remote and rugged location of these minerals in the remote hills of Chagai wedged between the borders of Afghanistan to the North and the Iranian border to the South.
After signing an agreement with Balochistan’s then-caretaker administration, led by chief minister Naseer Mengal, the resources were first discovered in 1993 by an Australian corporation, BHP Billiton. The ‘Chagai Hills Exploration Joint Venture Agreement’ (CHEJVA) gave BHP a 75 percent stake in the venture, while the government got a 25 percent share on a joint-investment basis with a 2 percent royalty.
After little to no progress was made, BHP stopped exploratory activities in April 2000 and passed up its operations to Mincor Resources, an Australian business. Mincor was later purchased by TCC in 2006, which is a subsidiary of a joint venture between Barrick Gold, based in Canada, and Antofagasta, based in Chile. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
Congratulations to Prime minister of Pakistan Imran Khan and Govt of Pakistan
Good effort by PM Imran Khan
Good JOB
Good Job
Most of the returns should be invested in Baluchistan over human resource development (education, vocational training), infrastructure including afforestation and water resources through institutions rather than through feudal Sardar.
No deal can be favorable unless they install a plant in Pakistan. If they are allowed to take the ore out of the country, Pakistan would have no controls over the net production.
It is also important that how big an area is being awarded and at what capacity they are going to explore it. It is even more important that any future disputes are setteled by the Pakistani courts and the company is registered in Pakistan.
This dispute went to the international court because of the adventure of Pakistani courts. The Supreme Court stopped PPP govt to proceed with the mining agreement they made with Tethyan Copper after the company had already invested $220 million so they took to the international courts for Pakistan’s failure to abide by its international agreement.
After little to no progress was made, BHP stopped exploratory activities in April 2000 and passed up its operations to Mincor Resources, an Australian business. Mincor was later purchased by TCC in 2006, which is a subsidiary of a joint venture between Barrick Gold, based in Canada, and Antofagasta, based in Chile.
REKO DIG WORTH 2 TRILLION USD, 50 % OF IT MANIPULATING AT MERELY 6 BILLION USD , AND CONCEALING THE EXACT DETAILS ; IS LIKELY TO DAMAGE PAKISTAN. TCC HAS CLAIMED THE VALUE OF HOLE 3 , IN THE COURT , MORE THAN 1250 BILLION USD , NOW BEING GIVEN 50 % OF ALL 8 HOLES ??? AT MERELY 6 BILLION PENALTY. ARE THEY SETTING UP REFINERY THERE ?? WHAT CAPACITY , WHICH MACHINERY, TECHNOLOGY , COST , N INFRA STRUCTURES WILL TCC BUILD THERE?? WHAT IS TESTING , MEASURING, WEIGHING SYSTEM OF 50 %?? WHO ARE THE BRIGHT STARS FROM PAKISTAN WHO HAVE DARED TO GROSSLY UNDER ESTIMATE THE NATIONAL ASSETS ? GREY DEAL …WILL REMAIN UNDER STRICT ACCOUNTABILITY IF NATIONAL INTERESTS ARE NOT SAFEGUARDED. Lt COL SAIF QURESHI RETD