Rek Diq Mines,Rek diq agreement, why Pakistan not take any initiative to extracted gold from, idea of exploring mineral at req diq emerged, how Pakistan solved rek diq case

Reko Diq Case

Where is Reko Diq? 

The village reko diq is found on the southwest side of Pakistan province Baluchistan district of chagi.it is one of the hottest places in Pakistan, in summer its temperature rises from 40 to 50 centigrade while in winter temperature is below down to -10. The world has five best reserves one of which is in the Pakistan chagi district. It contains Gold 1656 million tons and copper of 3052 million tons.

Meaning of the word Reko Diq

The term reko diq is a native language phrase that indicates sandy peak.

Why reko diq is crucial

Reko diq significance gain from 1977 when coal and gold were explored here. Later it was declared one of the largest copper and gold mines in Pakistan and also in the world. The gold which is found in reko diq is not the best to sell in markets, it needs much investment to renovate into a satisfactory foam of gold. There are two strategies to take out gold first is placer mining and the second is hard rok mining.

First Reko diq agreement/ chaghai hills exploration joint venture agreement

A Company Was entered Baluchistan and proclaimed that in the village of reko diq massive quantity of gold and copper is found than Baluchistan government decide to ratify a treaty with it. In the treaty, it was decided that the company would get 70% of its outcome because it explored and refine gold and copper there, and the Baluchistan government only 40, where the mineral was found. After that, an agreement is ratified between Baluchistan governments with the Australian company broken hills proprietary minerals. The treaty was known as the exploration of the chaghai hills joint venture treaty. The company does not take steps to refine minerals in Pakistan because it wants to refine them in its own country so Pakistan would not be able to know how much gold is dragged from Pakistan. Baluchistan government does not allow it to do this so it. The company takes this matter to the Supreme Court, which proclaimed that the provincial (Baluchistan)  government does not own the right in Pakistan to take such kind of design. 

The company referred this issue 2019 this issue into the international arbitration tribunal which imposed a fine of 6$ billion on Pakistan. moreover, TCC applied in British version island to close Pakistan foreign to Paris scribe hotel PIA three companies shares and PIA  Roz wallet in us, this appeal was accepted then Pakistan challenged it British version island review it and gave design favor of  Pakistan by declaring worlds tribunal design as invalid.

Why did Pakistan does not take any initiative to extract gold from it.

Pakistan does not take any initiative to execrate its gold from rek diq due to three main reasons first is that the gold which is f0und in rek diq is not a best to sell in markets, it needs much investment to convert it into a proper foam of gold. Secondly, Pakistan's internal instability does not let the government manage its resources. Thirdly, the reserves are located in Baluchistan which needs much more investment, the place is backward somehow as compared to other provinces.

Tethyan copper company stance on reko diq

According Tethyan copper company in its 2010 report to the government of Pakistan stated that it had 2.2 billion tons of mineral deposits moreover it can produce 200,000 tons of pure copper and about 8 tons of gold annually for 56 consecutive years. 

From where the idea of exploring minerals at req diq emerged

Two companies named Canada Barrick gold corporation and a chilan mining company come to Pakistan and said that we all know that there is a huge gold and copper reserve in rek diq so allow us to search there, the two merged and made a company known as Tethyan copper company. these two companies invest millions of dollars at Riko diq, invite world's best professionals there. Thereafter a year of research TCC know where the gold and copper lie. When TCC present its report to the Baluchistan government at that time Iftikar Muhammad Chaudry (governor) of the province canceled his earlier agreement.

How was the conflict solved?

The Tribunal is the independent judicial forum of last resort for the resolution of cases submitted by members of the staff of the Bank Group alleging non-observance of their contracts of employment or terms of appointment. The Tribunal's decisions are final and binding. When the British council gave design in favor of Pakistan then TCC showed its interest to deal with the conflict outside of the International courts then both Pakistan and TCC agreed that their 50 percent share will be given to Pakistan and 50 to TCC. Moreover, Pakistan announced that it will give 25 of the project share to Baluchistan and 25 to all over the country.                                                                  

What was the Reko Diq case in Pakistan?

The Islamic Republic of Pakistan" case is an ongoing legal case between the Government of Pakistan and the Tethyan Copper Company (TCC) over breach of the Australia–Pakistan Bilateral Investment Treaty (BIT) and illegal denial of mining rights to TCC at the Reko Diq Mine in Chagai District, Baluchistan.

TCC demand when Pakistan cancellation of their claim

In what is being described as a breakthrough, Barrick Gold Corp has agreed to restart the postponed Reko Diq mine. The conflict was a settlement with Pakistan on the framework to reconstitute the consensus after ten years of formal battles and negotiations. The reconstituted agreement authorizes the Canadian company’s Chilean partner, Antofagast PLC. Earlier they insisted to exit the project by withdrawing from its claim of $3.9bn in place of a payment of $900m

The outcome of the project

Government Claim 

 The government claims that the agreement will help it avoid the penalty, besides bringing in an investment of $10bn and creating 8,000 new jobs in the province.

Barrick gets half the project

 Under the new arrangement, Barrick gets half the project while Baluchistan and federal state-owned firms will each hold 25pc of the remaining half. 

• Bricrick gets mining license

• Production after five to six years

Benefit for “over 100 years 

The government contends that country will benefit for over 100 years from this project and the total worth is estimated to be over $100bn”.

Pakistan reach up to 50%

 The new agreement seems to be an improvement from the past when international investors held 75pc of the project, While Pakistan only 25%.

Value Reko Diq Mines

The total value of the minerals at Reko Diq is estimated at a trillion dollars or more. Unbelievably, not a single ton of copper or an ounce of gold was extracted from Reko Diq in over five decades. TCC estimated the value of minerals here to be at least 260 billion. According to the 2010 report, the quality of minerals at rek diq is best. The project, once it enters the production stage five to six years from now, is billed to be potentially the world’s largest gold and copper mine, with deposits capable of producing 200,000 tons of copper and 250,000 ounces of gold a year for more than half a century.