ISLAMABAD: The Additional Attorney General, Amir Rehman, informed the Supreme Court that after the Supreme Court’s judgment in Maulvi Abdul Haq case the government was not able to attract even a single company to do mining in Reko Diq.
He further informed a five-judge bench, which on Wednesday heard the presidential reference on the Reko Diq project, that 11 to 12 companies which constantly watch gold mining all over the world did not show interest in Balochistan gold mining because of the litigation.
Reko Diq is one of the world’s largest undeveloped copper-gold mines. The project worth billions of US dollars is being restarted after remaining on hold since 2011. After the Supreme Court’s judgment (PLD 2013 SC 641), the foreign company, which had explored gold in Reko Diq and later wanted its mining lease, approached the International Centre for Settlement of Investment Disputes (ICSID) Tribunal and the ICC Tribunal. In 2019, the ICSID announced an award of around $6 billion against Pakistan. In view of the ICSID award and the anticipated ICC award, the total liability against Pakistan is around $10 billion.
Amir Rehman also told the Court that after the SC’s judgment, Balochistan Copper and Gold project was launched in Reko Diq, under the supervision of Dr Samar Mubarakmand, a nuclear scientist. He added Rs8.812 billion were spent on for the exploration and mining of gold in Reko Diq from 2013 to 2015 it went to waste.
Justice Ijaz remarked is Dr Samar Mubarakmand the same person, who appearing before the Supreme Court in another case, had said that through gasification of coal mines the electricity would be generated, but later on nothing happened.
The AAG informed the Court that Attorney General for Pakistan office, Ministry of Law and Justice, Advocate General of Balochistan, and Haider Mota advising the government on legal side for reintroduction of the Reko Diq project. He informed the Court that in the Pakistan Steel Mills case, the Supreme Court has ruled that the government can form an independent policy to retire the debt. It can adopt any mode/ formula to retire the debt.
He submitted that according to the Balochistan Mineral Rules (BMR), if a company has the exploration licence then there was no need for the competitive bidding process for the mining lease. If a company explores deposit of minerals in a specific area and apply for the mining lease, then it should be given preference, he added.
Amir Rehman argued that there was a fee of mining lease, which is nominal, but the province mostly benefits in terms of royalty. Under the previous agreement, the royalty to the Balochistan government was two per cent, which in the reconstructed project is five per cent.
The AAG apprised that if a company explores minerals, and then obtains mining lease but later on relinquish the mining lease or it is cancelled somehow, then in that case the competitive bidding is given where there are proven minerals.
He submitted that in such a project the bidding is not held, adding the Chinese companies are interested in competitive bidding as it was done in Sandak and power project. They say: have a deal with us but without bidding. Citing an Indian Supreme Court judgment, Rehman said that for transparency, auction is not the sole mode in all the dealings (in various agreements). “For transparency this should be notice (d) that there is no nepotism, favouritism and arbitrariness.”
On a query of Justice Yahya Afridi that does Reko Diq have proven reserves (of gold), the AAG said that the reserves are proven but whether those are feasible or not that have to be looked into by the mining company.
Rehman said that the Balochistan provincial assembly on 9th June 2022 had passed an amendment in “The Regulation of Mines and Oilfields and Mineral Development (Government Control) Act, 1948” and incorporated Section 7, which relates to grant of mineral titles and mineral concessions in it.
He said after paying $900 million to Antofagasta, claim will be settled and Pakistan is now secure. The case was adjourned until Thursday (today).
Copyright Business Recorder, 2022
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