Reko Diq case: foreign companies bound to adhere to local laws: Supreme Court

The Supreme Court on Monday observed that foreign companies are bound to adhere to local laws of the host country in trade agreements before it adjourned the Reko Diq mining lease case till Tuesday (today). A three-judge bench led by Chief Justice Iftikhar Muhammad Chaudhry and comprising Justices Gulzar Ahmed and Sheikh Azmat Saeed was hearing the Reko Diq case.
Resuming his arguments, Khalild Anwar, the counsel for Tethyan Copper Company Pakistan (TCCP), contended that the agreement legally entitled his client and not BHP subsequent to handing over the lease to TCCP in 2006. He pleaded that the government of Balochistan independently confirmed TCCP''s legal obligation with respect to the Reko Diq project. TCCP has all the legal rights and entitlements as per the agreement.
Anwar further contended that the agreement was actually acted upon by the Balochistan government which transferred EL-5 to TCCP in which a discovery had been made. He further submitted that all the allegations against Chaghi Hills Exploration Joint Venture Agreement (CHEJVA) and the relaxation of 1970 Rules were directed against BHP and not TCCP, which was not in existence when the rules were relaxed on January 20, 1994.
Anwar further maintained that the mineral wealth of the people of the province had not been looted and efforts had been made to commence exploration though mining operation had not yet commenced. Citing the apprehension of former Prime Minister''s son in pursuance of the court orders in ephedrine case, Anwar said the court had to delve deep into the instant matter in order to ascertain the facts. Responding to a query of the court, he said that TCCP was in dispute with both the federal and provincial governments, adding that he would resume arguments before the bench on the legal status of CHEJVA.