Mineral exploration companies: consortium to be backed to move on Reko Diq project

Federal government has decided in principle to fully support the consortium of mineral exploring companies - Canadian Barrick Gold Corporation and Antofagasta to move on multibillion dollars copper-gold mines Reko Diq project which Balochistan government had halted earlier.
Sources said Pakistani ambassador in Chile had played an important role to convince the Pakistani government to go ahead on the project with Barrick Gold consortium which had singed a venture agreement with Balochistan government earlier. "Pakistani ambassador in Chile had also requested Petroleum Ministry to arrange a meeting between Prime Minister and Barrick gold consortium," sources said adding that Pakistani government had also reiterated to go ahead on the project with Barrick gold consortium fearing legal battle.
The decision was taken in meeting between Prime Minister and a delegation of consortium of mineral exploring companies led by Aaron Regent, President and CEO of Barrick Gold Corporation and Antofagasta Minerals S.A. of Chile, which called on him at the Prime Minister's Secretariat on Wednesday.
Meanwhile, the Ministry of Finance on Wednesday also hosted a reception to a delegation of consortium of mineral exploration companies. Finance Secretary welcomed the delegation and assured support for investment in exploration sector. According to a statement issued here, Prime Minister Syed Yusuf Raza Gilani reiterated the government's determination to explore all possible opportunities to attract investment as well as to utilise the natural resources of the country for the economic prosperity of the people.
The Prime Minister said that Pakistan really wanted foreign investment and intended to encourage the best firms and companies, which could give best results. It is with the same intention that the government had prepared investor friendly policies and opened up various sectors for the interested investors.
The Prime Minister informed the delegation which intends to invest in exploration and development of Reko Diq Copper-Gold Mines Project in Balochistan, that the federal government had discussed and decided in principle to fully support the consortium and expected the project would be launched at the earliest.
The Prime Minister directed the Ministry of Finance and Ministry of Petroleum and Natural Resources to hold further discussions with the consortium and to co-ordinate with the Government of Balochistan to finalise the details. The Prime Minister was apprised that development of this mega project would generate a revenue of about $3.5 billion for Government of Pakistan and $4.5 billion for Government of Balochistan over the life of mine which is 40 years.
He was briefed that the project would generate mass scale employment of about 6500 skilled and unskilled workers, transfer of technology, promotion of down stream industries, setting up of new township in the region and place the country on the world mineral map.
Aron Regent, President and ECO of Barrick Gold Corporation leading the delegation appreciated the investor friendly policies of the government of Pakistan and added that it was for the same reason that the consortium has been attracted to come to invest in Pakistan. He added that their respective governments have urged them to come to Pakistan in response to the demand of the government of Pakistan for foreign investment. The initial investment of the consortium which included a Canadian and a Chilean firm. he said. would invest $200 million, which could reach $4 billion as per the progress on the project. He appreciated the response of the government of Balochistan to the project and lauded the sagacity of the Chief Minister.
The meeting was also attended by Naveed Qamar, Minister for Petroleum and Natural Resources, Dr Abdul Hafeez Shaikh, Minister for Finance, Ms Hina Rabbani Khar, Minister of State for Finance and Kamran Lashari, Secretary Petroleum & Natural Resources. Aaron Regent was accompanied by the head of M/s Tethyan Copper Company, Gerhard Von Borries, Casrie Bogsi and Kelin Dashnisky of Barrick Gold Corporation and the Antofagasta Minerals.