The Supreme Court Thursday ordered Balochistan government to provide details of agreements, made with foreign companies for exploration of gold and copper mines at Reko-Diq in Balochistan.
A four-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry comprising Justice Muhammad Sair Ali, Justice Ghulam Rabbani and Justice Khalil-ur-Rehman Ramday, was hearing a case against leasing of Reko-Diq gold and copper mines in Balochistan worth over $260 billion to foreign exploration and mining companies by the federal government in violation of law.
Raza Kazim, counsel for one of the petitioners told the court that law does not permit for a joint venture without acquiring a prospective license of the exploration of gold and copper mines. He said the Balochistan government entered into an agreement under a joint venture for the Reko-Diq project in 1993 and the project was executed on January 10, 1994. He said rules do not allow for such an agreement.
To a court query, he said according to rules, approval of the concerned department is mandatory before entering into any agreement. The foreign companies had to get licenses first and then they had to be asked for execution of the project, he submitted, adding that the joint venture is very vague word, really means a temporary arrangement.
He contended that as per law, the ownership of the project could not be sold out. He said the BHP - a mining company, first made an agreement for exploration of mines reserves in Balochistan in 1996 and in 2006 it sold out the project to Tethyan Copper Company Limited (TCC) for $260 million. He said BHP had started drilling some 20,000 meters in Chaghi area in 1998 and later applied for a prospective license under joint venture on July 28, 1999. He said before exploring for reserves, the rules provide that you have to seek prospective license first, but they first started drilling of some 20, 000 meters area in 1998 and later applied for the license in 1999.
"How did this happen and under which authority", Justice Ramday asked Salahuddin Mengal, advocate-general Balochistan and directed him to show the relevant documents. Mengal besides providing insufficient documents to the court could not satisfy the court to other queries. He said before drilling, a license was obtained however when the court asked as to why the joint venture was seeking another license in 1999, he had no reply. "You have made a fraud in this case", Justice Ramday told him.
"The provincial government was not taking interest in such an important case", Chief Justice observed. "All the press statements pledging for eradicating corruption from the roots are nothing", Justice Ramday remarked and asked Mengal to sit with the concerned people and submit complete report. "Give us supporting documents over the project after viewing the rules besides submitting proper application forms filed for the project", Justice Ramday asked him.
To a court query, Raza Kazim said the court should look into the validity of this project, adding that the court should determine as to whether the project is valid in lieu of the rules available and if the court found that the project was invalid then it should direct for formation of a high committee for probing the matter. TCC's counsel, Khalid Anwar, again sought adjournment in the case, however the Chief Justice declined his request, saying that they have many cases to deal and they have to finish it, thus they cannot halt the hearing. Meanwhile the court directed Advocate General Balochistan to provide complete details of the project and adjourned the hearing till today (Friday).