The Government of Pakistan have retain the country from penalty in Reko Diq case. The Federal and Balochistan governments and Tethyan Copper Company which include two international firms (Antofagasta PLC and Barrick Gold Corporation) have reached an agreement in principle on a framework to reconstitute the Reko Diq project, and a pathway for Antofagasta to exit the project. Development of the asset has been stalled for nearly a decade because of a long-running dispute.
If we go into the history of this project, than in 2006 Government of Pakistan had an agreement with Tethyan Copper Company (TCC) for the development of world-class copper gold mine at Reko Diq.. TTC is a fully owned venture company of Barrick Gold of Canada and Antofagasta Minerals of Chile. On that time the agreement was done by provincial government in evaluating the development of world-class copper-gold mine at Reko Diq, It is located in Pakistan’s southwestern province of Balochistan and is one of the world’s biggest untapped copper and gold deposits. Tethyan Copper Company (TCC) has already invested over US$220 million into the project since 2006. Because of some reasons this agreement no stays longer and on July 2019 TTC submit their case to International Centre for Settlement of Investment Disputes (ICSID), the US court has reduced Pakistan’s motion to stay implementation of USD 6 billion penalty imposed against the country in the Reko Diq case. On November 2019, Pakistan challenge Reko Diq case and on 16 December 2020, there is some relief in case and some favor for Pakistan. After taking over the charge, Prime Minister Imran Khan belligerent pursued the case.
On the current occasion Prime Minister Imran Khan hope that the speculation would mark the beginning of large-scale investments in Balochistan that would change the quality of life of common citizens in the province. Later, PM on his tweet congratulate the nation, he added, I congratulate the nation & people of Balochistan on successful agreement with Barrick Gold for development of Reko Diq mine after 10 years of legal battles & negotiations. Penalty of approximately $11bn is off set, $10bn will be invested in Balochistan creating 8,000 new jobs, the prime minister further added, Reko Diq will potentially be the largest gold & copper mine in the world. It will liberate us from crippling debt and guide in a new era of development and prosperity.
In the new agreement, Barrick Gold Corporation would get 50 percent and the Balochistan government 25 percent share, while the rest 25 percent would be shared among the state-owned enterprises as (Oil and Gas Development Company (OGDCL), Pakistan Petroleum Limited (PPL) and Government Holdings Pakistan (GHPL). But in the Past agreement only 25 percent get by government of Balochistan and remaining would be get by Tethyan Copper Company (TCC).
This a landmark deal for the country as not only retain the country from penalty but also there are new chances for job opportunities for the people of Pakistan.