Balochistan MPs question extension of Saindak project lease

ISLAMABAD: Lawmakers from Balochistan on Monday expressed concern and questioned federal government’s authority to extend lease of Saindak Copper and Gold project in Balochistan, whereas under Aghaz-e-Haqooq-e-Balochistan package, this project was supposed to be under control of the provincial government.

They also threatened to challenge it in the Supreme Court (SC). Under Aghaz-e-Haqooq-e-Balochistan Project, the Saindak Copper and Gold project was supposed to be under the control of the provincial government then why the centre has granted extension, Senator Mir Kabeer said while talking in proceedings of the Senate Standing Committee on Petroleum.

Senate Standing Committee that met here with Senator Mohsin Aziz in the chair sought in-camera briefing on the Reko Diq and Saindak projects, after holding a thorough discussion on mining of copper and gold deposits in the Balochistan province.

Additional Secretary Mian Asad Hayaud Din said the Petroleum Division told the committee that the a proposal for the establishment of special security force for the protection of oil and gas blocks is under consideration. “We are going to brief the Prime Minister on security issues in some oil and gas exploration blocks, suggesting forming a Special Security Force as E&P Companies were spending around Rs14 billion annually on security of their crew and machinery,” he said.

The Committee also discussed gold and copper project in Balochistan and stressed the need for tools for strict monitoring of the Saindak Copper and Gold and at Reko diq.

The committee was given a briefing on Saindak Copper and Gold projects. The Petroleum Division officials briefed the body that all activities at the field were well-documented and verified by different government agencies including Customs, Export Promotion Zone Authority (EPZA), Federal Board of Revenue and Directorate General of Mines and Minerals, Balochistan.

They said the commodities entering or taken away from the project area were documented by both the EPZA and Customs authorities at the project site. “The product export from Saindak to Karachi is treated as “bounded consignment,” they said.

The officials said the Chief Instructor of Mines Balochistan regularly monitored the mining operations to ensure safety and health of workers, besides, technical experts and mining engineers were deployed to monitor the operational activities.

“Mining products for sale are weighed and sampled at the laboratories there,” they said adding that accounts of the contractor were audited by a reputed Pakistani chartered accountant firm appointed in consultation with Saindak Metals Limited (SML).

Mir Kabeer questioned that why the lease of Saindak Copper project was extended? “Under Aghaz-e-Haqooq-e-Balochistan, the Saindak project was supposed to be under the control of the provincial government and I am going to challenge it the Supreme Court,” he said. The officials of the Petroleum Division said that a Chinese company is working on Saindak Copper and Gold project and its lease was extended till 2022. The officials said that the extension was granted with the consent of the government of Balochistan.

On Reko Diq project, Mir Kabeer said that it is a big issue and Tethyan Copper Company has gone against the project to the internal forum. “According to my information, the TCC is demanding $12 billion from Pakistan,” he added.

The committee has called to monitor the report submitted by subcommittee on petroleum to examine the recruitment of locals and social welfare schemes under the CSR obligations by the oil and gas companies in KP.

A report was presented by sub-committee that resulted with further recommendation included that the composition of the district committee for CSR projects should be reviewed and the new compositions may include one member each from National Assembly and Senate, district Nazim, concerned deputy commissioner, and representative from the local community. The deputy commissioner should be the focal person and should be responsible for execution of the welfare schemes under the CSR obligations.

The meeting was also informed by representatives of Mari Petroleum Company Limited that it was going to start seismic surveys in Zarghon and Block-28 from March and April respectively, adding that the survey takes one-year time to complete as per international practice.

The meeting was attended by senators Lt Gen (R) Salahuddin Tirmizi, Mir Kabeer Ahmed Muhammad Shahi, Saleem Zia,Shammim Afridi, Sardar Muhammad Yaqoob Khan Nasar along with senior officers from Ministry , OGDCL and MOL.