Pakistan May Have to Pay Over $11 Billion as Fine in Reko Diq Gold Mine Case

Pakistan may be facing a penalty of around $11.5 billion thanks to a recent ruling in favor of Tethyan Copper Company Pvt Ltd (TCC) by an Arbitration tribunal of the World Bank.

The case is based on an arbitration claim by TCC, a joint venture between Chile’s Antofagasta and Canada’s Barrick Gold corporation, based on the fact that it was not awarded the Reko Diq mining project after a dispute arising in 2009.

The arbitration claim was submitted back in 2012 by TCC after first attempting to settle the case in the Supreme court. Now in 2017, they have filed for compensatory damages adding up to $9.1 billion.

Adding another claim of $2.3 billion as compound interest on its pre-award investment. This totals to hefty $11.4 billion.

Both the federal as well as the provisional government’s submitted documents earlier requesting the dismissal of this case on the basis of corruption and malpractice by TCC. As they believe TCCs intentions were to lowball the Pakistani government and pay cheap rates for the gold and copper mined from the project.

These applications were dismissed by the International Center for Settlement of Investment Disputes (ICSID) as Pakistan clearly violated some provisions of its bilateral investment treaty with Australia, where TCC is incorporated. This reason was presented by TCC but no official statement was provided by the Pakistani government on this matter.

As of now no response has been submitted by the Pakistani government to the latest claims of TCC. They have till 21st of July 2017 to do so.

The Dispute

The Dispute began on 2009 between TCC and the Balochistan government where the project was to take place. There appear to be two reasons for the dispute.

The first one came up due to the fact that TCC wanted the Balochistan government to take a quarter of the financial obligation in the project as they had 25% share in the project while TCC having the remainder 75%. The Balochistan government did not accept this.

The second dispute apparently came up when a Chinese company was introduced in the project. The Chilean government was not too happy with the addition and a letter was written by the then Pakistan’s ambassador to Chile to the then petroleum minister, Naveed Qamar, advising him to not involve the Chinese company in this project.

The Worth of the Mining Project

A feasibility report was submitted to the government of Balochistan by TCC back in 2009. According to the report the turnover from the project was estimated to be $60 billion over its life span of 56 years. The number was based on the price of gold and copper in 2009.

The mine also has estimated reserves of 21.18 million ounces of gold and 11.65 million tonnes of copper.

This will indeed be a significant blow to the already indebted nation of Pakistan. Time will tell how things turn out.

Source


  • Not Worry Ye Bhi China Pe Kar Dega :

  • Waqas

    So TTC wanted to use our land to get rich and pay 25% of total revenue and want to pay us 25% of expenses too? This is what happens what illiterates like politicians and corrupts like our bureaucracy make policies of our country.

    and why wouldn’t Naveed Qamar introduce Chinese corrupts in our country. because everybody is ready to sell our country and looters are ready to take on. Put Naveed Qamar on trial for not following protocol of contract. He is the reason Pakistan is facing such worries.

    • Patriot

      Let these kameenay politicians who concluded the deals pay from their own assets — they should pay from their own money, otherwise their Pakistani passports and IDs should be revoked and all their assets in Pakistan confiscated and then they should be thrown into the Arabian sea!

  • Adeel Ahmad

    Kha jao pore Pakistan ko haramio ankh bnd kr k contract sign karty jao kanjri k bachy

    • .Contract K Alag Hisaab Hoga Qayamat Main !.

  • M Waseem Akhtar

    Propak should publish full story including who made the deal (Whose Government) and who ordered deal establishment (Govt or Courts)?

    • EcoCo

      This project was awarded to TTC during Musharraf’s era.

      • M Waseem Akhtar

        Wow…. who will Bell the Boots?

  • Real Patriot

    Why pay to TCC, they can go and fuck themselves in international fuckin court. We give a damn

    • Shahid Saleem

      Yeah! And when Indians block Indus water, they can tell us to do the same!

      Who needs international courts anyway, right???

  • Beghairti ki intiha..
    Besharmo ye awam ka paisa hai..Balochistan ki halat pe rehm khao haramkhoro..

  • Pakpehlay

    Another Noora League corruption exposed?

    Magar unho nay deny kar daina hay sara kuch.

    #mulktobaichdia

  • Abdullah

    democracy only produce corruption and sellouts. If we want justice we need Khilafah

    • Shahid Saleem

      Like in ISIS???

      • Abdullah

        Not like ISIS but like The Khilafah of Abu Bakar, Umar, Uthman and Ali – RA

        • Shahid Saleem

          Where is your step by step plan for converting Pakistan (if not all Muslim countries) from current system to Khalifah?

          No one has a plan.

          • Abdullah

            There is of-course a plan – you can start with google, you can then search keywords like Ruling System of Islam Khilafah, Economic System of Islam, Education System of Islam, The Judicial System of Islam. There are political parties working peacefully for this work like Hizb ut Tahrir in Pakistan and Tanzeem e Islami

            What is required is that educated people like yourself makes the effort to reach out to these parties and READ about systems of Islam, Seera of our Nabi SAW and the life of Sahab RA

            • Shahid Saleem

              Um, no, that is not a working plan.

              Start with the big elephant in the room: converting the financial system to stop using fiat currency.

              • Abdullah

                Yes, and thats part of Islamic Economic System i.e. gold and silver standard which will replace fiat currency. BUT who is going to do it? only a State can do it and taking control of State requires politics and if we want Islamic change then islamic politics i.e. work for Khilafah.

                • Shahid Saleem

                  Ok, now tell me

                  1. how much Gold & Silver does Pakistan have?
                  2. how much does Pakistan import vs export?
                  3. how much does Pakistan have to pay back in external loans?

                  If you look at hard numbers & facts, you will see that going back to Silver & Gold is not a workable plan AT ALL for Pakistan. It is a pure fantasy.

  • Eli Ehsan

    #ThankYouIFTI the CJ cam vigilante…………