ISLAMABAD : Finance minister , Shaukat Tareen, accompanied by Energy minister , Hammad Azhar and Chief minister Balochistan, Abdul Qadus. , held a joint press conference here to give details of the settlement agreements for reconstruction of Reko Dik copper and golf project. Shaukat Tareen told the media persons that Pakistan has reached an agreement with Tethyan Copper Company (TCC), Barrick Gold and Antofagastafor reconstruction of Reko Diq copper and gold project . Reko Diq
mining project had ran into trouble in 2013 when the court had cancelled the agreement of the project signed with TCC which had Barrick Gold and Antofagasta. TCC and its partners had moved the Internation Centre for Settlement against Pakistan for remedy . The Internation Centre for Settlement,’s decision of cancelling Riko Diq cost Pakistan dearly as the international court upheld TCC and its partners point of view and ruled against Pakistan ordering it to pay $ 5.8 billion. Pakistan went into the appeal against the court decision and meanwhile it started negotiations with TCC and Barrick Gold for offering them the project for reconstruction . Pakistan has agreed to pay. $ 900 million to Antofagasta to exit from the project . The government is in process to complete the process for approval of the funds to pay to Antofagasta . The agreement provides Pakistan to pay $ 900 million to Antofagasta before end of the current calender year .
According to the revised agreement , Barrick Gold will get 50 % shares and the remaining 50% will go the government of Balochistan and the federal government . Although , two key ministers…Shaukat Tareen and Hammad Azhar…claimed that the revised agreement was the best option to get better shareholding in this big project of copper and gold . It’s also encouraging that Pakistan managed to dodge a 5.8 $ billion award granted to the foreign companies but the details released to the media by the government side has left some key questions regarding settlement and exit of Antofagasta unanswered . For example , why Pakistan government is paying $ 900 fine to Antofagasta if it has agreed to give the project to its partners? Another question which is to be answered by the government authorities that where this huge money of fine will come from?
Third , why after all huge some of $ 900 million as fine is being paid to Antofagasta of prime minister claims that entire $ 11 billion of award money has been set aside ?
The press release issued by Antofagasta regarding its exit from Reko Diq taunts prime minister ‘s claim of having done forgo the entire award money with its interest. The Finance ministers and others who held a press conference on the issue and made claims to have clinched a great deal with Antofagasta should read its press release for the prime minister so that he could say the truth when he goes to address to the public in rallies .
