$10 billion to be invested in Balochistan mega project

$10 billion to be invested in Balochistan mega project

ISLAMABAD – Pakistani government and Barrick Gold Corporation have reached an agreement to reconstitute the Reko Diq project in the country’s mineral-rich region Balochistan.

Prime Minister Imran Khan shared the development earlier today. “I congratulate the nation and people of Balochistan on successful agreement with Barrick Gold for development of RekoDiq mine after 10 years of legal battles and negotiations. Penalty of approx $ 11 bn is off set, $10 bn will be invested in Balochistan creating 8000 new jobs,” he wrote on Twitter.

The premier also mentioned that: “RekoDiq will potentially be the largest gold and copper mine in the world saying it will liberate Pakistan from crippling debt and usher in a new era of development and prosperity.

A statement issued in this regard cited that the reconstituted project will be held 50 percent by Barrick and 50 percent by Pakistan stakeholders, comprising a 10 percent free-carried, non-contributing share held by the government of Balochistan.

Shares of the federal government shall be divided equally amongst three state-owned entities including Oil & Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Pakistan Limited (GHPL).

The Toronto-based mining giant will be responsible for exploration and will have the surface rights and a mineral agreement for a specified time.

The development came after Islamabad reach an out-of-court settlement with Tethyan Copper Company (TCC) which will see the South Asian country avoid $6 billion penalty due to its decision to deny a mining lease.