Mine of fortune

Recent reports have revealed that Saudi Arabia is interested in buying 15 per cent shares in the Reko Diq mines located in Balochistan, with the potential to produce 200,000 tons of copper and 250,000 ounces of gold annually for over half a century. According to media reports, Saudi Arabia will pay Pakistan $540 million in two instalments. In addition, Saudi Arabia will also provide $150 million for the exploration of natural minerals in Balochistan.

Geographically, Reko Diq is a small town located in the Chaghi district of Balochistan, Pakistan’s largest province, bordering Iran and Afghanistan. The Reko Diq mines are considered one of the world’s largest and most valuable mineral deposits. The vast reserves of gold and copper in Reko Diq were initially explored in the 1970s. However, the Balochistan government entered a joint venture with an Australian mining company BHP in 1993. When news of vast reserves of gold in Balochistan came to the limelight, the eyes of global investors also started focusing on Reko Diq. Two mining companies from Chile and Canada jointly acquired the Reko Diq shares from the Australian company

On the other hand, voices began to rise in Balochistan against irregularities, maladministration, lack of transparency, and ignoring the interests of local people. In 2011, the Balochistan government cancelled the Reko Diq mining agreement. In response, the matter reached the international arbitration court. A huge compensation of six billion dollars was imposed on Pakistan, while the legal proceedings also put an additional burden of heavy expenses on the national exchequer.

If Pakistan had shown its inability to pay the fine, this undesirable situation would not only have resulted in our humiliation on the international level. However, the government of Pakistan has consistently and persistently presented its case over the past several years to resolve the matter amicably and succeeded in the renegotiation of the agreement with Canadian company Barrick Gold.

Under the new agreement, the Canadian company not only waived its share of the fine but also expressed its readiness to pay damages to the Chilean company on behalf of Pakistan. It is agreed that 50 per cent of the gold and copper will go to the Canadian company, while the remaining 50 per cent will be equally distributed between the federal government and Balochistan. Moreover, several development programmes related to health, education, and the provision of clean drinking water for locals will also be launched in the Reko Diq area, and thousands of people will get job opportunities.

If everything continues as planned and the Reko Diq project does not face any further disputes, I believe that gold production will begin in the next three years. In my view, the presence of the world’s largest gold and copper reserves in our country is undoubtedly a priceless gift for the people of Pakistan. However, we must not neglect the fact that the land of Balochistan, being rich in natural minerals, is also a soft target of global conspiracies. Apparently, a major reason for the ongoing unrest in the province is the presence of precious minerals on which some global players have their eyes.

The Reko Diq project has certainly been controversial in the past, but I believe that history is for learning and we should refrain from repeating our mistakes. There is a dire need to learn from experience and it must be ensured that such agreements are fair, transparent and in the best interest of the people of Pakistan. In my view, the Reko Diq mines could definitely serve as a crucial resource to overcome our economic troubles, whereas the possible entry of Saudi Arabia will be a ray of hope to transform the Reko Diq into a mine of fortune.

The writer is a member of the National Assembly and patron-in-chief of the Pakistan Hindu Council. He tweets/posts @RVankwani