ISLAMABAD: The Governments of Pakistan and Balochistan, Barrack Gold, and Antofagasta plc signed a definitive agreement in London on Thursday to restructure the Reko Diq project after a favorable opinion from the Supreme Court and approved legislation. An $11 billion settlement of the dispute was announced. In law
According to a statement released by the Office of the Attorney General of Pakistan, one of the largest undeveloped copper-gold projects in the world, Recodek will own:
- 50% by Barrick Gold
- 25% by three government entities – Oil and Gas Development Company, Pakistan Petroleum Limited and Government Holdings (Private) Limited
- 15% on a fully funded basis by the province of Balochistan
- 10% on free carry basis from Balochistan province
“Recodique’s development of a world-class mine is one of the largest ever foreign direct investments in Pakistan. This project will bring growth and opportunity for generations to come for Balochistan province and the nation as a whole,” the statement said. will bring,” the statement said.
It added that apart from the economic benefits, the mine will also create employment opportunities, boost the growth of the regional economy and invest in development programs in Balochistan.
It should be noted that the province’s interest in the mine will be fully funded, meaning that Balochistan will receive the profits, royalties and other benefits of its shareholding without financial support.
Additionally, during peak construction, the project is expected to employ 7,500 people and once in production, it will create approximately 4,000 long-term jobs. Employment of local communities has been prioritized.
Reko Diq’s ownership structure reflects a partnership between Pakistan, the province and a major international mining company – benefiting all stakeholders.
Negotiations began in 2015 with increasing commitments from 2019. The negotiation team was led by Additional Attorney General Ahmed Irfan Aslam and Brigadier Atif Rafique.
Pakistan met the deadline to sign the agreement after Cabinet approval. President Arif Alvi also signed the Foreign Investment Promotion and Protection Bill 2022 on Tuesday.
The bill, which was already approved by both houses of Parliament on Monday, aims to protect foreign investment in the country.
