Pakistani Prime Minister Imran Khan has 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.
As per the terms of the new agreement, the Reko Diq project shall be revived and developed by Barrick gold in partnership with Pakistani entities.
The new project company shall be owned 50 percent by Barrick Gold.
The remaining 50 percent shareholding shall be owned by Pakistan, divided equally between Federal Government and the provincial government of Balochistan.
Federal Government’s 25 percent shareholding shall be divided equally amongst three state-owned-entities (SOEs) of the Federal Government, namely Oil and Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Government Holdings Pakistan Limited (GHPL). Balochistan’s share shall 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 shall be borne by the Federal Government.
In developing the project, nearly USD 10 billion shall be invested in Balochistan, including USD one billion that shall be invested in social uplift projects such as roads, schools, hospitals and creation of a technical training institute for mining.
The investment shall create over 8000 new jobs.
