Canadian High Commission shows concern over Reko Diq copper and gold mining project

Canadian High Commission shows concern over Reko Diq copper and gold mining project

Lajoas Andraaz, Canadian Deputy High Commissioner, has shown his concern over investment worth $400 million stuck in Reko Diq copper and gold mining project.

Speaking to a delegation in Multan he said, “We do not have any political objectives in Pakistan, Canada wants an economically viable and strong Pakistan and we will keep supporting it. Canada especially wants to make investment
in mining industry, but response from the Reko Diq project is really disappointing.”

He referred to a statement of Balochistan chief minister that foreigners would not be allowed to continue work on the project, which the diplomat said was a big worry as Canadian investors (Barrick’s) had injected $400 million
into the project.

Tethyan Copper Company (TCC) is a joint venture between Antofagasta and Barrick Gold. Antofagasta is a Chilean company that produces copper while Barrick’s is from Canadian background. The company had submitted feasibility study
in August 2010 whereas they applied for mining licence in February 2011.

Early last month, the Balochistan government rejected a mining lease application submitted by TCC, which has a majority stake of 75 per cent in the mining project. The provincial licensing authority, on Thursday, November 17, 2011
refuted TCC’s mining lease application for the Reko Diq project by saying that their feasibility report was incomplete

Tethyan Copper Company was furious with Balochistan Mining Committee refusal. TCC lashed out at the provincial licensing authority and claimed that they have breached mineral rules. Apart from that, TCC has also accused the committee
of denying TCC their rights under a joint venture agreement and Pakistani laws.

TCC in a press release have argued, “The licensing authority’s summary refusal to grant the mining licence, to which TCC is entitled, breaches not only the Balochistan Mineral Rules (2002), but also TCC’s rights under the Chagai
Hills Exploration Joint Venture Agreement and Pakistani law.”

Chagai a district of Balochistan has the fourth largest copper reserves in the world. According to an estimate, the mining project has a life 56 years and can produce 200,000 tons of copper and 250,000 ounces of gold on annual
basis.

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Posted by Wajahat Javed on Dec 16 2011. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry