ISLAMABAD : Dec 16, 2022: Pakistan has finally inked an agreement with Barrick Gold for reconstitution of multi-billion dollar worth Reko Diq mining project . The revised agreement for development of Reko Diq was singed in London.
As per revised agreement , Barrick Gold has 50 % share in Reko Diq. Three state owned enterprises (SOEs) , Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited ( PPL) and Government Holding Limited have 25 % shareholding and the remaining 25 % share goes to Baluchistan government.
Under the reconstituted agreement, Barrick Gold will invest $ 7 billion for development of Reko Diq. With signing of reconstituted agreement with Barrick Gold, Pakistan has settled a $ 12 penalty passed on to Pakistan by the international court.
The company has already worked out a plan for start of development work at Reko Diq mining project in Baluchistan.
An official team signed the agreement for reconstitution of Reko Diq project in London on December 15, 2022. The reconstituted agreement will be effective from December 16, 2022.
The official team comprising a senior official of the government of Baluchistan, managing director Oil and Gas Development Company Limited (OGDCL) , Pakistan Petroleum Limited (PPL), Govt Holding (Pvt) Limited (GHPL) had travelled to London for signing of the agreement with Barrick Gold for reconstitution of Reko Diq project.
The parliament had endorsed reconstitution of Reko Diq with Barrick Gold . Earlier, Supreme Court of Pakistan had also stamped reconstitution of Reko Diq project calling it as a legal document.
The clearance of reconstituted project for Reko Diq was a pre-requisite for signing of a reconstitution of Reko Diq project with Barrick Gold. Barrick Gold had demanded of Pakistan to seek approval from the parliament and Supreme Court of Pakistan to avoid any legal or otherwise complication at any later stage of the agreement.
Pakistan had leased out Reko Diq project to Tithayan Copper Company