The Economic Coordination Committee (ECC) has allowed 15 years’ extension of lease contract between Saindak Metals Limited (SML) and Metallurgical Construction Corporation (MCC) China for Saindak Copper Gold Project.
Federal Minister for Finance and Revenue Shaukat Tarin presided over the ECC.
The Ministry of Energy and Petroleum Division submitted a summary on 15 years’ extension of lease contract between SML and MCC China for Saindak Copper Gold Project.
Reportedly, SML is a public sector company owned by the government of Pakistan and is engaged in managing affairs of Saindak Copper-Gold Project in District Chagai, Balochistan.
The project was developed for local ore exploration, mining and processing to blister copper.
The Federal Government has invested more than Rs29.234 billion in the project and it has been declared an Export Processing Zone (EPZ) up till October 31, 2022.
Reportedly, the operations of the project were entrusted to a state-owned entity MCC China under a lease contract with SML on November 30, 2001, awarded through an international bidding process. Subsequent to the approval of the Federal Cabinet, the contract was initially for a period of ten years starting October 2, 2002 along with a provision for extension on the mutually agreed terms.
Thereafter with the approval of the Federal Cabinet, the contract period was twice extended in 2011 & 2017 for five years each time. Currently the contract is valid till October 31, 2022.
The petroleum division informed the ECC that the mineral deposit of the project comprises three ore bodies south, north and east. The present project operations are based on south & north ore bodies (SOB & NOB), which are near depletion and development of east ore body (EOB) needs to be undertaken for continuance of the project beyond 2021/2022.
After conducting exploration under the existing contract, MCC submitted a feasibility study report for the development of EOB which has been examined by the SML’s Board of Directors and a Technical Evaluation Committee (TEC) comprising technical representatives of SML, Geological Survey of Pakistan, Government of Balochistan Evaluation Committee (TEC) and Petroleum Division along with external technical & financial experts.
As a result of these, the development of EOB has been worked out to be a viable venture with mine service life of 20 years. MCC has requested for a fifteen years extension in the contract term beyond October, 2022 for development of EOB.
Reportedly, the Government of Balochistan conveyed its concurrence to the extension and the Ministry of Law &Justice in its comments stated that the lease contract can be extended on the terms & conditions as mutually agreed by the parties.
ECC after detailed discussion allowed the extension of lease contract and recommended reviewing financial aspects of the project annually.
The government should now take over instead of extending the lease
Fuck you,