ISLAMABAD: Pakistan's federal government is expected to share details of an agreement and settlement related to its gold and copper deposits in southwestern Balochistan province later today, Sunday, after Prime Minister Imran Khan discusses it in a meeting.
The provincial cabinet of Balochistan already announced in a media statement on Saturday it had approved the agreement and settlement regarding the Reko Diq project after receiving a briefing from the secretary minerals.
Reko Diq has the world's largest untapped gold and copper mines. It is said to have immense potential to improve the economic wellbeing of the people of Balochistan province which is one of the least developed regions in the country.
A World Bank arbitration court had ordered Pakistan to pay $5.8 billion to Tethyan Copper, a joint venture between Chile's Antofagasta Plc and Canada's Barrick Gold, in July 2019.
According to Tethyan Copper, it had spent more than $220 million to discover the vast mineral deposits before Pakistan refused to extend its mining lease in 2011 which was required by the company to continue its operations.
"The provincial cabinet has approved the proposed agreement and settlement regarding the Reko Diq project," said an official statement released by the Balochistan government, adding: "The secretary minerals briefed the provincial cabinet on the benefits of the proposed agreement and settlement to the people of Balochistan. The full details of the agreement and settlement will be released after a meeting presided over by the prime minister on Sunday."
The statement maintained the project would be instrumental in addressing the deprivations of the people of Balochistan and helping the economy of the province.
"The Reko Diq project will be a game changer and ensure the prosperity of the people of Balochistan," it added.
The statement also revealed that Barrick Gold, one of the components of Tethyan Copper, was interested in a slightly modified agreement with Pakistan, though Antofagasta Plc, the other company, wanted to get the settlement and might be paid about $3 billion.
"The Balochistan chief minister ensured the protection of the interests of the province in Reko Diq agreement," Farah Azeem Shah, a provincial spokesperson, said. "The rehabilitation of this project will result in an investment of $10 billion in Balochistan in which $1bn will be spent on infrastructure, schools, mining, training centers and other social sectors."