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Local consortium proposes to develop gold, copper mine | public/private partnership

313ghazi

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QUETTA:
A local consortium has made a proposal to develop a major copper and gold mine in Chagai district in Balochistan after the country's top court decision blocked its development by -- Tethyan Copper Company (TCC) -- a joint venture between Chile’s Antofagasta and Canada’s Barrick Gold.

The Balochistan Mineral Exploration Company (BMEC) received a proposal from the National Resources Private Limited (NRL) on an unsolicited basis to develop and implement the Tanjeel reserves as a starter project, followed by the development of the vast Reko Diq area reserves.

The NRL is a domestic consortium comprising Arif Habib Equity (Pvt) Limited, Mari Petroleum Company Limited, Liberty Mills Limited, Reliance Commodities (Pvt) Limited (Fatima group), YB Pakistan Limited (Lucky group) and South Western Mining (Pvt) Limited.

The BMEC is a joint venture of the Balochistan government, the Centre (10%) and the concession holder of EL199 (consisting of Reko Diq and Tanjeel reserves).

In an introductory presentation to the BMEC Board, the NRL summarily highlighted the salient features of the submitted proposal. Shamsuddin A Shaikh, the NRL CEO, said Balochistan had a significant role to play in the development of Pakistan and its economy.

“Through the development of Tanjeel and Reko Diq under [the] public-private partnership [mode], the NRL is hopeful that it can usher in a new era for the progress of the region through this initiative,” he added.

“The project will have a complete social uplift package associated with it for the entire area, in addition to the development of the mineral cadaster to aid the development of the mining sector.”

He also requested the BMEC Board to permit the NRL to carry out further investigation of the minerals and the energy and water resources, which would be required for the “expeditious development” of the proposed project.

Hafiz Abdul Basit, the provincial additional chief secretary (development) and the chairman of the BMEC Board, appreciated the initiative.

He assured the representatives of the NRL that the matter would be reviewed by the transaction adviser, already hired by the company, and dealt with in accordance with the laws, in the best interest of the province and the country.

In July 2019, an international arbitration tribunal of the World Bank's International Centre for Settlement of Investment Disputes (ICSID) had slapped a penalty of $5.84 billion on Pakistan for its 2011 court decision to deny the mining lease to the TCC.
The tribunal -- chaired by Germany's Klaus Sachs and including Bulgarian arbitrator Stanimir Alexandrov and UK's Lord Hoffmann -- had ordered Pakistan to pay over $4 billion in damages to the TCC, in addition to $1.7 billion in pre-award interest.
Later, the TCC approached five different countries courts for the enforcement of the penalty imposed on Pakistan.

In November 2019, Pakistan moved a plea before ICC for annulment of the award on several grounds. When the country's plea was registered, an interim stay was granted automatically on the enforcement proceedings initiated by the TCC.

A hearing to confirm the stay order took place via video link in April last year. In September 2020, the tribunal finally ruled in favour of Pakistan, confirming the stay on the enforcement of the award.

The office of the attorney general for Pakistan in a statement described the development as a success for the country and its legal team.

The federal government has said it is in talks with TCC about a settlement.


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Gold is a strategic national asset. I think the government should hire a private company to mine it, but pay them in fees and a small percentage of the gold itself. A small percentage should be sold to cover costs and the rest added to the national reserves.
 
Jan 16, 2021
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This must be done, we need to develop this capacity to ensure that we can have a independent domestic and foreign policy, as relying on FIAT based currency system will never allow this
 

Bouncer

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Could be an excellent opportunity to propel this country forward, not just by earning valueable forex, developing associated industries and most importantly developing a national skill base for such complex mining projects. Or could be a mega scam where a few get filthy rich and the rest see the sad drama in media of court proceedings, flights to London, ECL m naam and toxic statements. Lets pray for the former.
 

Samlee

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Do Any Of These Companies Have The Required Expertise Or Will They Blindly Go At It Like Dr Samar Mubarak??????
 

deathfromabove

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That's how it should have been from the start. Having said that, if PTI govt can arrange $14b for strategic asset like Diamer Basha Dam then same model should be followed here, e.g. this is a strategic asset of Pakistan as well.
 

Bilal.

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If I am not mistaking, Shamsuddin Shaikh was the man in charge when Thar coal was finally mined and made available for the country.
 

hydrabadi_arab

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If I am not mistaking, Shamsuddin Shaikh was the man in charge when Thar coal was finally mined and made available for the country.
Pakistan is like 5 decades late on coal mining. Time to move on and forget about Thar coal. Unless it can converted to gas or some other use.
 

ziaulislam

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Do Any Of These Companies Have The Required Expertise Or Will They Blindly Go At It Like Dr Samar Mubarak??????
Private companies are answerable to share holders so even if they are new they will find a way

Example;
Engro in coal mining

So if its true that so many private entities are coming together then they will find a way

Gold mining isnt 5th gen stealth technology
Pakistan is like 5 decades late on coal mining. Time to move on and forget about Thar coal. Unless it can converted to gas or some other use.
Move on to what? USA has shell gas

What do we have? Gas?
We cant pay for it
 

Death Professor

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The NRL is a domestic consortium comprising Arif Habib Equity (Pvt) Limited, Mari Petroleum Company Limited, Liberty Mills Limited, Reliance Commodities (Pvt) Limited (Fatima group), YB Pakistan Limited (Lucky group) and South Western Mining (Pvt) Limited.
Big names, hope it all works out.
 

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