ISLAMABAD: Following the Supreme Court’s (SC) designation of the contract as “legitimate,” the governments of Pakistan and Balochistan, as well as Barrick Gold Corporation, signed a historic $8 billion agreement on the Reko Diq project. Representatives of the federal and Balochistan governments, as well as Reko Diq Gold Corporation, reportedly inked the $8 billion historic agreement.
One of the largest foreign investments in Pakistan’s history, according to a statement by the Balochistan administration. The $6.5 billion fine imposed on Pakistan by the International Court has been revoked as a result of the accord. From December 16, 2022, the Reko Diq agreement would be put into effect right away. Barrick Gold Corporation announced in a statement that the Reko Diq project’s reconstitution was now complete.
Reko Diq, one of the biggest undeveloped copper-gold projects in the world, is held by five federal state-owned enterprises: three federal state-owned enterprises control 25% of the project, Barrick owns 50%, the Province of Balochistan owns 15%, and the Province of Balochistan owns 10%. The conclusion of the legal procedures, according to Barrick President and Chief Executive Mark Bristow, was a critical step in developing Reko Diq into a world-class, long-life mine that would significantly increase the company’s strategically significant copper portfolio and benefit its Pakistani stakeholders for generations to come.
The project is anticipated to employ 7,500 people at its busiest points during construction, and once production begins, it will generate about 4,000 long-term jobs. As with other companies in the group, Barrick gives locals and nationalities of the host nation preference when hiring. A day earlier, the Reko Diq legislation was resolved by the federal government and partners Jamiat Ulema-e-Islam Fazl (JUI-F), Balochistan National Party Mengal (BNP-M), and National Party (Bizenjo).
It was successful for the team of spokespeople for Prime Minister Shehbaz Sharif, which included federal ministers Ayaz Sadiq and Azam Nazeer Tarar, to win over the ally parties JUI-F, BNP-M, and NP over the law pertaining to the Reko Diq project. It is important to note that the revised agreement on the Reko Diq gold and copper mining project in Balochistan was upheld by Pakistan’s Supreme Court (SC) on December 9.
One of the largest undeveloped copper-gold mines in the world is Reko Diq. The project was put on hold in 2011, but is now being revived. The Reko Diq Project was the subject of a reference sent by President Arif Alvi in accordance with Article 186 of the Pakistani Constitution, on the recommendation of Prime Minister Shehbaz Sharif.
International specialists helped the court, according to the SC, which also underlined that the Reko Diq sale did not violate its 2013 judgement. According to experts’ opinions, the agreement was made by the federal and Balochistani governments, and it is not unlawful.
