PM witnesses signing of new agreement on Reko Diq project

Reko Diq: Pakistan reconstitutes agreement with Barric Gold, avoids $11 bn penalty


Islamabad: The Governments of Pakistan and Balochistan have signed an agreement with Barrick Gold Corporation of Canada to revive the Reko Diq Project.

Prime Minister Imran Khan witnessed the signing ceremony in Islamabad on Sunday.

The agreement was signed on Sunday by representatives of the Federal and Balochistan Governments with a delegation of Barrick Gold led by Chief Executive Dr Mark Bristow.

The new project company shall be owned 50 percent by Barrick Gold. The remaining 50 percent shareholding shall be owned by Pakistan.

As part of the Prime Minister’s vision, the Government of Balochistan shall not incur any expenses in development of the mines and its share of expenses shall be borne by the Federal Government.

The investment shall create over 8000 new jobs. Addressing the ceremony, the Prime Minister emphasized on development of Balochistan and uplift of underdeveloped areas. He hoped the investment will mark the beginning of large-scale investments in Balochistan that shall change the quality of lives of ordinary citizens in the province. Adding to this, Minister for Finance and Revenue Shaukat Tarin Sunday said Governments of Pakistan and Balochistan, Antofagasta plc, and Barrick Gold Corporation have reached agreement in principle on a framework to reconstitute the Reko Diq project, and a pathway for Antofagasta to exit the project.

Addressing a hurriedly called press conference along with the Energy Minister Hammad Azhar and Chief Minister Balochistan Mir Abdul Quddus Bizenjo here, the minister said after the new development, Pakistan would not only avoid the $11 billion penalty but also get an opportunity of exploring the world’s largest gold and copper reserve.

He said some $10 billion would be invested under this project which would create 8000 new jobs for locals.

The minister said as per the new agreement, Barric Gold would retain 50% share, while government of Balochistan would get 25% share, and the rest 25% share would be attributed to the State Owned Enterprises Oil and Gas Development Company (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Pakistan (GHPL).

Comments are closed.

Subscribe to Newsletter