KARACHI: Pakistan on Saturday reviewed progress on the implementation of agreed steps for the completion of Reko Diq deal to avoid a massive penalty of $9 billion imposed by the international arbitration court.

Federal Minister for Finance and Revenue Ishaq Dar chaired a meeting of the apex committee on Reko Diq Project, said an official statement, to stress upon an early completion of the remaining steps under the agreed arrangement.

The government is facing a strict deadline of December 15 to take all the measures agreed under a settlement with the mining companies working on the project.

“The meeting was informed that after the advice of the Supreme Court on a reference already filed is received, necessary legislative steps would be taken for which the relevant provinces would be fully on board,” said the statement issued by the finance ministry.

The provincial administrations have also assured to complete all the codal formalities within the due date.

The Reko Diq project is implemented in Pakistan’s southwestern Balochistan province which is said to have one of the world’s largest undeveloped copper and gold deposits. 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 blocked the Tethyan Copper Company in 2013 from developing Reko Diq following a court case on how the contract had been awarded.

However, the country reached an out-of-court settlement with the mining firms in March this year to avoid paying the $9 billion penalty announced by the World Bank’s arbitration court, and the government said it was hopeful that Barrick and its partners would invest $10 billion in the project.

The federal cabinet approved filing a presidential reference in the Supreme Court on September 30 for the revival of the project, asking the court if its earlier judgment, the constitution, laws or public policy prevented the federal or provincial government of Balochistan to enter into the Reko Diq agreements or affect their validity.

The lawyer for Barrack Gold recently informed the Supreme Court if the company’s agreement with Pakistan was finalized by December 15, the $9 billion penalty on the country would be quashed.

The company’s lawyer, Makhdoom Ali Khan, said about $4 billion investment would also be made in the project.

Saturday’s meeting led by the finance minister noted that the successful completion of the agreed arrangement by the deadline would add to the confidence of international investors.

The revival of Reko Diq project is expected to give a fillip to the economy by creating a more positive investment sentiment and increasing employment opportunities in the country.