EDITORIAL: The Supreme Court’s seal of approval to the new Reko Diq mine deal — declaring the agreement between the federal government, Balochistan government and Barrick Gold Corporation “legal” as well as “environment-friendly” — finally revives the long stalled project, saves the economy from a bigger fine than it has national reserves, rescues the country’s image in international financial markets, and opens the way (hopefully) for desperately needed foreign direct investment (FDI) into other projects as well.
The top court’s short order said that “the process for the reconstitution of the Reko Diq project has been undertaken transparently and with due diligence. The agreements are being signed by authorities duly authorised and competent to do so under the law”.
That should put all the uncertainty and legal surprises that sprang from this project to rest. It’s also reassuring that “Barrick Gold has categorically assured us that the applicable minimum wage laws will be fully observed and the agreements expressly provide that all the operations will be carried out in accordance with international mining standards.” That’s very welcome and should also give the local mining industry, known for sticking to outdated methods and procedures that often take a toll on workers’ lives, a much needed shot in the arm.
The corporation also assured the court that it would contribute to corporate social responsibility (CSR) by directing a portion of its returns towards the provision of fresh drinking water, health facilities, schools and infrastructure development for native residents. “In addition, most of the labour force will be employed from amongst the local population of the province (and) programmes for development of skills will also be put in place,” the short order elaborated.
That explains why Balochistan’s chief minister, Mir Abdul Quddus Bizenjo, was so thrilled by the “historic” decision, tweeting that it was the provincial government’s “determination and efforts for the economic independence of the province and protection of its resources” that won the day.
Hopefully, the province will not struggle to provide the kind of manpower that will now be needed as the project takes off after a decade of unnecessary and often ridiculous delays. This is one of the biggest mining projects in the world, after all, and definitely the largest-ever investment set to be made in Pakistan. Barrick President Mark Bristow has already gone on record and promised that the first phase would be complete by 2027-28, which will turn it into a “world class mine and transform Balochistan”.
The court was also pleased to dwell on its environment-friendly credentials, which should go a long way in attracting further investment into the country.
As the project finally clears all hurdles, with Barrick owning 50 percent of it and the federal and Balochistan governments splitting the rest with 25 percent ownership each, there’s no reason why it shouldn’t help write a new chapter about the national, especially Baloch, economy. Much if not all of the province’s problems owe to its acute state of neglect and under-development, no doubt, with one administration after another making tall promises and failing as desperation stokes militancy and threatens the very foundations of the state.
It is unfortunate that certain pillars of the state, including the judiciary, have sometimes by their actions or lack thereof and judgments played a part in driving away crucial investment that also have, at times, resulted in stoking regressive tendencies. Yet it is very encouraging that the reference forwarded to the SC by President Arif Alvi in October has resulted in such transparency so quickly.
News reports suggest that the court consulted local as well as foreign experts, besides taking the Balochistan government into confidence about important and binding elements of this new deal. It seems the future will finally be better than the past for the province that traditionally lags behind all others.
Copyright Business Recorder, 2022
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