ISLAMABAD – Pakistani government and Barrick Gold Corporation have reachedan agreement to reconstitute the Reko Diq project in the country’smineral-rich region Balochistan.
Prime Minister Imran Khan shared the development earlier today. “Icongratulate the nation and people of Balochistan on successful agreementwith Barrick Gold for development of RekoDiq mine after 10 years of legalbattles and negotiations. Penalty of approx $ 11 bn is off set, $10 bn willbe invested in Balochistan creating 8000 new jobs,” he wrote on Twitter.
The premier also mentioned that: “RekoDiq will potentially be the largestgold and copper mine in the world saying it will liberate Pakistan fromcrippling debt and usher in a new era of development and prosperity.
A statement issued in this regard cited that the reconstituted project willbe held 50 percent by Barrick and 50 percent by Pakistan stakeholders,comprising a 10 percent free-carried, non-contributing share held by thegovernment of Balochistan.
Shares of the federal government shall be divided equally amongst threestate-owned entities including Oil & Gas Development Corporation Limited(OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings PakistanLimited (GHPL).
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The Toronto-based mining giant will be responsible for exploration and willhave the surface rights and a mineral agreement for a specified time.
The development came after Islamabad reach an out-of-court settlement withTethyan Copper Company (TCC) which will see the South Asian country avoid$6 billion penalty due to its decision to deny a mining lease.
