Govt presents Reko Diq project details in NA

ISLAMABAD: Parliamentary Secretary for Energy Mian Khan Bugti told the National Assembly on Thursday that talks between Pakistan and Saudi Arabia with regard to the Reko Diq Copper-Gold Project were under way but the latter had not yet made any investment.

Replying to a question of Mirza Ikhtiar Baig during the Question-Hour, Mian Khan said technical teams from both sides were actively engaged and were working together to explore potential investment opportunities in light of updated feasibility study of the project.

In a written reply to Aliya Kamran, the federal government presented the details of Reko Diq project in the House. As per the details, the first phase of production in Reko Diq will start from 2028. In a written reply, Minister for Petroleum Division Ali Pervez Malik told the House that the target of 300,000 oz/annum of gold and 200,000 tons/annum of copper had been set in the first phase. The production of second phase will start from 2034 during which 500,000 oz/annum of gold and 400,000 tons/annum of copper will be extracted annually.

The project will be the largest Western investment in Pakistan and is forecast to generate more than US$75 billion in free cash flows over the current life of mine plan which was nearly 37 years. “These numbers are based on real cash flows, which are conservative,” he stated.

In a reply to another question of Mirza Ikhtiar Baig with regard to the petroleum levy, it was revealed that the government had not given relief to the public after reduction in the prices of petroleum products from March 1 to April 16.

The House was told that the government increased the Petroleum Development Levy on petrol by Rs18 per liter and by Rs17 per liter on high-speed diesel and collects money from the public as non-tax in the form of petroleum levy. In a written reply, the petroleum ministry said the decline in international petroleum prices provided an opportunity to enhance the maximum rate of PL to generate revenue which could be used in the larger public interest. Therefore, the federal government decided to increase the Petroleum Development Levy (PL) rate.