Govt allows Pakistan International Bulk Terminal to handle Reko Diq gold, copper exports

The government has agreed to grant an exemption for Pakistan International Bulk Terminal Limited (PIBTL) to handle and export gold and copper extracted from the Reko Diq mining project, allowing the company to expand its operations beyond coal, clinker, and cement, The Express Tribune reported.

The executive committee of the Special Investment Facilitation Council (SIFC) unanimously approved the exemption in a recent meeting, directing the Petroleum Division to forward the case to the Public Procurement Regulatory Authority (PPRA) for approval. 

It also instructed the Port Qasim Authority (PQA) and PIBTL to amend their existing implementation agreement to facilitate the handling of copper, gold, and other mineral exports. The revised agreement is expected to be finalised by March 15, 2025.

PIBTL and PQA had originally signed a 30-year build-operate-transfer (BOT) contract for a coal and cement terminal, which currently restricts PIBTL to handling dirty bulk cargo such as coal, clinker, and cement. 

However, Reko Diq Mining Company has proposed PIBTL as an interim export terminal for copper concentrate until Gwadar Port becomes fully operational, citing the project’s national significance.

The PQA informed the federal government that modifying the agreement to include copper concentrate would require a PPRA exemption. However, PPRA officials stated that an exemption was unnecessary since no procurement was involved in the agreement.

Pakistan previously settled an international dispute over Reko Diq after losing a case at the International Centre for Settlement of Investment Disputes (ICSID). The government paid $900 million to Antofagasta, a Chilean mining company, as part of the out-of-court settlement.

The dispute stemmed from a 2013 Supreme Court ruling that halted Tethyan Copper Company (TCC) — a joint venture between Chile’s Antofagasta and Canada’s Barrick Gold — from developing Reko Diq, which is home to one of the largest untapped copper and gold reserves in the world. Following the ruling, ICSID imposed a $5.8 billion penalty on Pakistan for breaching the investment agreement.

The conflict began when the Balochistan government declined to invest in the project despite holding a 25% stake. Now, Pakistan is in talks with Saudi Arabia to sell a 15% share in Reko Diq, as part of broader efforts to attract foreign investment in its mineral sector.