Pakistan to deposit $22.7 million in escrow funds to resume Reko Diq mining project

A file photo of the site of the gold and copper mine exploration project of Tethyan Copper Company (TCC) in Reko Diq, in Balochistan, Pakistan. (Photo courtesy: TCC)
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Updated 11 December 2022
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Pakistan to deposit $22.7 million in escrow funds to resume Reko Diq mining project

  • Reko Diq is one of the world's largest underdeveloped sites of copper and gold deposits
  • On Friday, Pakistan's Supreme Court endorsed settlement for Barrick Gold to resume mining

KARACHI: Pakistan on Sunday approved measures to ensure resuming mining at the Reko Diq project, one of the world's largest underdeveloped sites of copper and gold deposits, the finance ministry said.

The approval comes days after Pakistan's Supreme Court endorsed a settlement for Barrick Gold to resume mining at Reko Diq. The endorsement was a condition of the agreement for Barrick to restart work on the project in the southwestern province of Balochistan, bordering Afghanistan and Iran, in which it will invest $10 billion.

A meeting of the Economic Coordination Committee (ECC) of the cabinet on Sunday considered and approved two important agenda items related to Reko Diq, “thus paving the way for early start of the Reko Diq Project,” a statement issued by the finance ministry said.  

According to the terms of the agreed settlement, the ECC allowed the Finance Division to issue directives for the deposit of the “aggregate amount of interest to the sum of over $22.72 million in the escrow account from March 31, 2022 to December 15, 2022.”  

The ECC also allowed the Finance Division to arrange the amount of interest payable for the Balochistan government’s share in the project, amounting to $8.52 million from a loan of Rs65 billion already raised by the Government Holdings Private Limited (GHPL), according to the ministry's statement.  

The ECC also approved a proposal on a funding plan by the federal government for the share of Balochistan in the Reko Diq Project. As per the proposal, an overall funding commitment of $717 million over the period of 6 years will be provided by the federal government.

The Reko Diq mine is located in Pakistan’s southwestern Baluchistan province. The development of the project was suspended in 2011 after Pakistan denied the Tethyan Copper Company, a joint venture between Barrick Gold of Canada and Antofagasta Minerals of Chile, license to continue work.

The country’s Supreme Court then blocked the Tethyan Copper Company (TCC) in 2013 from developing Reko Diq following a court case into the procedure by which the contract had been awarded.  

However, Pakistan reached an out-of-court settlement with the mining firms in March this year to avoid paying a $9 billion penalty announced by the World Bank’s arbitration court.

Pakistan’s Supreme Court on Friday ruled in favor of the new agreement, observing that there was nothing illegal in it and it was not in violation of the court’s 2013 judgment.


Bangladesh mourns slain activist as tensions rise ahead of elections

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Bangladesh mourns slain activist as tensions rise ahead of elections

  • Sharif Osman Hadi, who took part in 2024 uprising against Sheikh Hasina, passed away last week after getting shot
  • Hadi’s death has sparked a new diplomatic squabble with India, as police say shooter has probably fled to India

DHAKA, Bangladesh: Hundreds of thousands of people attended the funeral Saturday of a leading Bangladeshi activist who died of gunshot wounds sustained in an attack in Dhaka earlier this month, as political tensions gripped the country ahead of elections.

Sharif Osman Hadi, who took part in last year’s political uprising that ended former Prime Minister Sheikh Hasina’s 15-year rule, died in a hospital in Singapore on Thursday after being shot Dec. 12 in Dhaka.

Police said they had identified suspects and that the shooter had most probably fled to India, where Hasina has been in exile. The development sparked a new diplomatic squabble with India and prompted New Delhi this week to summon Bangladesh’s envoy. Bangladesh also summoned the Indian envoy to Dhaka.

Security was tight in Dhaka on Saturday as the funeral prayers were held outside the nation’s Parliament complex.

Hadi’s body returned on Friday night, and Saturday was declared a national mourning day.
Hadi was a spokesperson for the Inqilab Moncho culture group, which said he would be buried on the Dhaka University campus beside the country’s national poet Kazi Nazrul Islam.

Mourners carried Bangladesh flags and chanted slogans, such as “We will be Hadi, we will be fighting decades after decades,” and “We will not let Hadi’s blood go in vain.”

The news of his death on Thursday evening triggered violence, with groups of protesters attacking and torching the offices of two leading national dailies. The country’s interim leader, Nobel Peace Prize laureate Muhammad Yunus, has urged the people to stay calm.

Hadi was a fierce critic of both neighboring India and Hasina, who has been in exile since Aug. 5, 2024, when she fled Bangladesh. Hadi had planned to run as an independent candidate in a major constituency in Dhaka in the next national elections in February.

Bangladesh has been going through a critical transition under Yunus in a bid to return to democracy through the upcoming elections. But the government has been Hasina’s Awami League party, which is one of two major political parties. 

Hasina’s archrival, former Prime Minister Khaleda Zia’s Bangladesh Nationalist Party is the other key party, which hopes to forms the next government. The Jamaat-e-Islami party, the country’s largest Islamist party with a dark history involving the nation’s independence war in 1971, is leading an alliance to carve out a bigger political space in the absence of Hasina’s party and its allies.

Hasina has been sentenced to death on charges of crimes against humanity, but India’s has not responded to repeated requests by the Yunus-led government for her extradition.