Justice Khalil-ur-Rehman Ramday on Tuesday observed that the exploration contract of Reko-Diq goldmine project in Balochistan was signed when a caretaker government was in place. A four-member bench headed by Chief Justice Iftikhar Mohammad Chaudhary comprising Justice Mohammad Sair Ali, Justice Ghulam Rabbani and Justice Khalil-ur-Rehman Ramday was hearing the case pertaining to Reko-Diq copper goldmine contract.
Tariq Asad Advocate, a petitioner in the case, argued that according to Balochistan Mining Concession Rules, 1970 the licence or the lease for exploration shall only be granted or assigned to a person or company registered in Pakistan.
Justice Ramday said that in 1970 Mining Rules, it has been stated that the applicant (company) has to disclose the identity of each person on their board of directors. He noted that the Balochistan Development Authority prior to the approval of Balochistan government had signed the joint venture agreement. He said that somebody has to inform the court that whether the Balochistan Mineral Rules, 2002 were operating with the retrospect effect or not.
Advocate General Balochistan Salahuddin Mengal said that the TCC, in its feasibility report, had concealed the fact as in Reko-Diq there might be other minerals like lead, zinc, silver, platinum and malavadium besides copper and gold. The chief justice said according to Mining Rules, 1970 at a time a company could apply only for one mineral, but the licence to BHP was granted for exploration of many minerals.
The advocate general Balochistan said it was also written in 1970 Rules that even if a company has licence for one mineral and during the mining they found that there were other minerals in their specific area of operation then the law says that that company could not do the mining for other mineral without the government permission. The AG said the licence issued to BHP Australia on December 08, 1996 was for associate mineral - means for many minerals.
The court told the AG that he had wasted lot of time of the court; as original documents related to the project were not submitted before the court so far. Justice Ramday said later on you would inform the court that original file was missing. Mengal replied, "'Yes, we could not find that file."
The chief justice observed that though a special mining committee was formed, besides Balochistan government's directives to the relevant authorities to relax terms and conditions. Justice Ramday said, "it reflects the committee made decision regarding award of contract for prospecting licence to BHP under direction."
Justice Chaudhry observed that the case was of very important nature, as 26 senators have become party in the case. He said that the government should have consulted Pakistani experts when first licence was issued in 1996 to remove all kind of ambiguities.
He asked Mengal that the provincial government had the right to make the deal but it must follow the laid down rules and procedures. He said it seems that the secretary who had approved the agreement did not read the documents thoroughly, which gave the petitioners an opportunity to approach the court for rectifying the agreement. The court adjourned hearing till Wednesday (Today).
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