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Major Breakthrough: Pakistan and Tethyan Copper Company(TCC) have agreed over 50 per cent shares over Reko Diq

hydrabadi_arab

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ISLAMABAD: In a major breakthrough in Reko Diq case, Pakistan and Tethyan Copper Company (TCC) have agreed over 50 percent shares, likely paving way for averting a multi-billion-dollar fine imposed on Pakistan from an international court, ARY NEWS reported.

According to sources privy to the details, Pakistan and Tethyan Copper Company (TCC) have agreed to divide shares with each side getting 50 percent of them, contrary to 25 percent shares for Pakistan in the previous deal.

It emerged that the agreement between them would likely be signed in February and if finalized, it would avert a looming threat on Pakistan over the imposition of a US$6 billion fine.

Moreover, the sources within TCC said that they wanted a legal cover for their investment this time and do not want a repeat of the previous episode that saw a legal battle between two sides. “We are in talks with Pakistan to make out of court settlement over the issue,” they said.

In 2019, Pakistan managed to get a reduced penalty from a massive $16bn to $6bn in Reko Diq case.

The International Center for Settlement of Investment Disputes (ICSID) imposed a penalty of 5.8bn on Pakistan in the Reko Diq case. In a 700-page ruling, ICSID awarded a US$4.08 billion penalty and $1.87 bn in interest to Pakistan. The amount will be paid to Tethyan Copper Company (TCC).

Tethyan Copper Company (TCC) had been granted a license for gold and copper mining at RekoDiq, area of Balochistan but the former chief justice of Pakistan Muhammad Chaudhry had cancelled the agreement with the company.
 

313ghazi

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Based on some crude calcs the mine is going to produce about $1.3 billion worth of minerals a year.
It could be worth at least $260 billion.

We're giving 50% away to a foreign company.

Its fucking criminal.
 

Menace2Society

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Based on some crude calcs the mine is going to produce about $1.3 billion worth of minerals a year.
It could be worth at least $260 billion.

We're giving 50% away to a foreign company.

Its fucking criminal.

Shocking. How can Pakistan not have the expertise to do this themselves?

I would say take the fine.
 

KaiserX

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50% of our precious national resources and we consider it a win. Pathetic.

What is the total value of the mine?

So which Pakistani company has the capacity/technology as well as equipment to extract such resources??? Pakistani government is not Chinese govt., Pak govt cannot even run an 1970s era steel mill and you expect it to come up with tech and huge funds necessary to extract copper :D

Extracting resources is one of the most costly, technology incentive industries in the world with very little rate of return. Unless there was a vertical supply chain integration with high value added products using copper, which Pakistan also has neither.

This would be considered a huge win taking the above into light.
 

peagle

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ISLAMABAD: In a major breakthrough in Reko Diq case, Pakistan and Tethyan Copper Company (TCC) have agreed over 50 percent shares, likely paving way for averting a multi-billion-dollar fine imposed on Pakistan from an international court, ARY NEWS reported.

According to sources privy to the details, Pakistan and Tethyan Copper Company (TCC) have agreed to divide shares with each side getting 50 percent of them, contrary to 25 percent shares for Pakistan in the previous deal.

It emerged that the agreement between them would likely be signed in February and if finalized, it would avert a looming threat on Pakistan over the imposition of a US$6 billion fine.

Moreover, the sources within TCC said that they wanted a legal cover for their investment this time and do not want a repeat of the previous episode that saw a legal battle between two sides. “We are in talks with Pakistan to make out of court settlement over the issue,” they said.

In 2019, Pakistan managed to get a reduced penalty from a massive $16bn to $6bn in Reko Diq case.

The International Center for Settlement of Investment Disputes (ICSID) imposed a penalty of 5.8bn on Pakistan in the Reko Diq case. In a 700-page ruling, ICSID awarded a US$4.08 billion penalty and $1.87 bn in interest to Pakistan. The amount will be paid to Tethyan Copper Company (TCC).

Tethyan Copper Company (TCC) had been granted a license for gold and copper mining at RekoDiq, area of Balochistan but the former chief justice of Pakistan Muhammad Chaudhry had cancelled the agreement with the company.

Even after everything,
and the company letting go the massive $6 billion dollars award,
just imagine how much this mine must be worth, obviously heck of a lot more then $6 billion.

The previous agreement only gave 25% to Pakistan, who the heck negotiated that agreement, someone needs to be put in prison.

50% is heck of a lot better then 25%, plus no more $6 billion dollar fine, I call that a win.
 

313ghazi

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you cant...

Shocking. How can Pakistan not have the expertise to do this themselves?

I would say take the fine.

Who's holding a gun to us asking us to pay the fine? We could launch further legal challenges to delay paying it and instead spend a few hundred million buying some experts. Apparently it costs 3 billion to build the mine. Borrow the money - pay 10 times the normal rate for experts to get it running and train your own people.

When it's making money pay the fine.

So which Pakistani company has the capacity/technology as well as equipment to extract such resources???

Extracting resources is one of the most costly, technology incentive industries in the world with very little rate of return. Unless there was a vertical supply chain integration with high value added products using copper, which Pakistan also has neither.

This would be considered a huge win taking the above into light.

It's small minded thinking.

We can buy equipment and buy expertise. Do what the Gulf Arabs do - buy the individual experts for extortionate rates.

It's cheaper than being asset stripped like 3rd world Africans.
 
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hydrabadi_arab

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Based on some crude calcs the mine is going to produce about $1.3 billion worth of minerals a year.
It could be worth at least $260 billion.

We're giving 50% away to a foreign company.

Its fucking criminal.

They are going to invest billions, and may take decade for them to see any profit. Unlike Pakistan/Balochistan who will get benefits from day 1. And more importantly Pakistan no longer have to pay penalty of $6 billion.
 

313ghazi

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They are going to invest billions, and may take decade for them to see any profit. Unlike Pakistan/Balochistan who will get benefits from day 1. And more importantly Pakistan no longer have to pay penalty of $6 billion.

Those minerals are the Haq of every single citizen of this country.

1. Nobody can make us pay a fine.
2. We can borrow to invest.

A few billion dollars is a pittance.

They are going to spend $3 billion and earn $120 billion.

That is more than our total debt.
 

Gripen9

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Those minerals are the Haq of every single citizen of this country.

1. Nobody can make us pay a fine.
2. We can borrow to invest.

A few billion dollars is a pittance.

They are going to spend $3 billion and earn $120 billion.

That is more than our total debt.

If you want to have any working relationship with the western world, you will have to pay the fine. Otherwise courts around the world will seize your assets that are in their jurisdiction. Case in point PIA aircraft and PIA hotels in NY were seized based on courts direction.
 
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