Chinese firm running Saindak project says it paid $39.8m to Balochistan gov

[UmarJustice]

QUETTA, June 13: The MCC Resources Development Limited (MRDL) working on the Saindak Cooper and Gold mining project said on Thursday it had paid $39.8m to the Balochistan government on account of royalty over the past 10 years from the Saindak project.

A spokesman for the MRDL owned by the Chinese government, said the company had provided Rs10 million for restarting the Saindak project and Rs15 million as the working capital.

He criticised what he called propaganda campaign launched in certain newspapers against the company and claimed the company had also paid $220m profit to the federal government and $6m as rent.

“The company had also paid $13.4m as presumptive tax and $6m development surcharge between periods of 2002 to 2012,” the spokesman said.

He said the company had been providing direct employment at the site and around 1600 local people were involved in mining and running the plant. The spokesman further said the company was also spending Rs206.9m to upgrade schools and health services, provide scholarships to needy and bright local students and drinking water and other amenities to villages around the Saindak project.—Staff Correspondent


Chinese firm running Saindak project says it paid $39.8m to Balochistan govt - DAWN.COM

 

[PakPrinciples]

I strongly prefer Pakistan mine these minerals itself and if necessary hire companies that are experienced in the mining industry to provide assistance (i.e consultation).

Yes, it costs money to get mining projects started but it can either take a loan or as I have mentioned in other PDF posts raise the tax to GDP ratio (at least 17%) and initially use the increased revenue (7% of GDP) to fund electricity generation projects (takes 1 year) and then put money into Pakistan's industries like mining and related industries that can utilize our mined minerals to create value added products in Pakistan (ex. electronics, jewelry, etc...) initially to meet local consumption and then for export.

One hallmark of poor nations is that they export raw materials and import value added products. The reason China is so successful is because they do the exact opposite while western nations economies are collapsing under massive debt is usually because many of them have started doing what is advised against (i.e. exporting raw materials and importing value added products).

 

[Chinese-Dragon]

Pakistan should mine these minerals itself.

Yes, it costs money to get mining projects started but it can either take a loan or as I have mentioned in other PDF posts raise the tax to GDP ratio (at least 17%) and initially use the increased revenue (7% of GDP) to fund electricity generation projects (takes 1 year) and then put money into Pakistan's industries like mining and related industries that can utilize our mined minerals to create value added products in Pakistan (ex. electronics, jewelry, etc...) initially to meet local consumption and then for export.

One hallmark of poor nations is that they export raw materials and import value added products. The reason China is so successful is because they do the exact opposite while western nations economies are collapsing under massive debt is usually because many of them have started doing what is advised against (i.e. exporting raw materials and importing value added products).

You are correct.

Nations ideally should NOT export raw materials. Instead, they should process those raw materials themselves, in order to add value before they export it.