ISLAMABAD: President Arif Alvi on advice of Prime Minister Shehbaz Sharif filed a reference in  to get validation for new Reko Diq project deal under Article 186 of Constitution. Government will seek an opinion from apex court regarding contract with Barrick Gold Corporation, a Canada-based mining group in Reko Diq reference.

Earlier, Barrick Gold Corporation had asked government to get Reko Diq gold and copper deal stamped by parliament and Supreme Court for long-term sustainability of company’s investment in project.

Reko Diq is one of world’s largest undeveloped copper-gold mines. Project is being restarted after remaining on hold since 2011.

Last month, a federal Cabinet meeting was held under chairmanship of prime minister, in which Cabinet approved filing presidential reference to Supreme Court on Reko Diq. It said that government sought opinions on two questions. First, is deal with complainant company, TCC, compliant with apex court’s earlier judgment in Maulvi Abdul Haq case? Second, is proposed Investment Protection Act compliant with Constitution?

It is believed Chief Justice of Pakistan will form a five-judge larger bench to hear presidential reference.

The apex committee, headed by minister for finance and comprising Tethyan Copper Company Pakistan (Private) Limited shareholders among others had agreed to a framework for settlement and revival of Reko Diq project in March 2022.

According to settlement, 50 percent of new project’s shares would be owned by Barrick Gold, while remaining shares would be owned by Pakistan, divided equally between Centre and Balochistan government.

Federal government’s share of 25 percent will be divided equally among three state-owned entities Oil and Gas Development Corporation Limited, Pakistan Petroleum Limited and Government Holdings Pakistan Limited. Balochistan’s share shall be held by a company wholly-owned and controlled by provincial government. As part of prime minister’s vision for Balochistan, provincial government’s share of capital and operating expenses for project shall be borne by Centre. Balochistan government will not incur any expenses in development of mines.

In developing project, nearly $ 10 billion will be invested in Balochistan, including $ 1 billion for social uplift projects roads, schools, hospitals and creation of technical training institutes for mining. Investment will create over 8,000 new jobs.

Project will also make Balochistan largest recipient of foreign direct investment in country. To ensure optimal utilisation of nation’s mineral wealth, government is also considering setting up a smelter.

Published in The Daily National Courier, October, 19 2022

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