Prime Minister Imran Khan witnessed the signing ceremony between the Government of Pakistan, the Government of Balochistan, and Barrick Gold Corporation of Canada after successfully resolving the longstanding dispute with Tethyan Copper Company (TCC) concerning the development of copper and gold mines in Chagai, popularly known as the Reko Diq dispute.
A new agreement was signed by representatives of the federal and Balochistan governments with a delegation of Barrick Gold, led by Chief Executive Dr. Mark Bristow.
I congratulate the nation & ppl of Balochistan on successful agreement with Barrick Gold for development of RekoDiq mine after 10 years of legal battles & negotiations. Penalty of approx $ 11 bn is off set, $10 bn will be invested in Balochistan creating 8000 new jobs.
— Imran Khan (@ImranKhanPTI) March 20, 2022
As per the terms of the new agreement, the Reko Diq project will be revived and developed by Barrick Gold in partnership with Pakistani entities. The new project company will be owned 50 percent by Barrick Gold. The remaining 50 percent shareholding will be owned by Pakistan, divided equally between the federal government and the provincial government of Balochistan.
The federal government’s 25 percent shareholding will be divided equally amongst three state-owned-entities (SOEs) of the federal government, namely Oil & Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Pakistan Limited (GHPL). Balochistan’s share will be held by a company wholly-owned and controlled by the government of Balochistan.
As part of the prime minister’s vision for Balochistan, the government of Balochistan’s share of capital and operating expenses for the project will be borne by the federal government. In other words, the government of Balochistan will not incur any expenses in the development of the mines and its share of expenses will be borne by the federal government.
In developing the project, nearly $10 billion will be invested in Balochistan, including $1 billion that will be invested in social uplift projects such as roads, schools, hospitals, and the creation of a technical training institute for mining.
The investment will create over 8,000 new jobs. This project will make Balochistan the largest recipient of foreign direct investment in Pakistan and the Reko Diq project will be one of the largest copper and gold mining projects in the world. To ensure optimal utilization of the nation’s mineral wealth the government is also considering setting up a smelter.
The agreement was reached after several rounds of negotiations over the last three years. In August 2019, the prime minister had set up a committee to steer the negotiations with an aim for the early development of the mines. In this effort, the federal and provincial governments were assisted by international advisors. To ensure the deal is compliant with all the laws, the government will submit the matter before the parliament and the Supreme Court.
While speaking at the occasion, the prime minister highlighted the emphasis his government places on the development of Balochistan and the uplift of underdeveloped areas. He expressed hope that the investment will mark the beginning of large-scale investments in Balochistan that will change the quality of life of ordinary citizens in Balochistan. The prime minister appreciated the efforts of the negotiating team for a transparent and favorable agreement for the people of Balochistan.
Earlier, a delegation of Barrick Gold Corporation called on the prime minister. Canadian High Commissioner to Pakistan Wendy Gilmour was also present.
