The truth about Reko Diq – The Express Tribune

Nadeem | 11 years ago | Reply The wealth of Pakistan is for the people and the next generations of Pakistan…..it should not sold to outsiders what may be the profit……People of Pakistan should profit from their wealth by mining and extracting the wealth of Pakistan by themselves.Pakistan and the people of Pakistan are not for sale

nOOne | 11 years ago | Reply Hi 1) If SC is has nothing to do with mining, what about Mr. Tirmizi? or even all of you spitting comments here? 2) Have you ever read metal industry news? (Obviously not.) Do you know how natural resources are sold? 3) Do you know that no country wants raw material taken out of its territory? 4) The so called legible contractors of this project are not well known miners. 5) There is ABSOLUTELY nothing in terms of transfer of technology. They shall get the material, and take it outside the country. For any transfer of tech, govt. of Chile and Canada has to be involved. 6) Kickbacks or not, why aren’t the contractors saying anything with a proof if they are being put into pressure for commission? 7) Start reading metal industry news. Only then you shall learn that everyone is trying to manipulate the situation, whether proponents or opponents. 8) I guess we have forgotten that the telcos in Pakistan paid their license fee by taking loans from Pakistani banks. Hilarious. And they still have not fulfilled their promise to start services beyond the obsolete GSM. Talk about commitments made by corporations. 9) If people can get their 10% from barren lands, they shall surely extract their ‘share’ from natural resources. The only way to stop them is by not allowing anyone to mine these resources. Let our later generations benefit from these resources. We have eaten up the country. We should leave something for our descendants. 10) If any moderator is going to remove my post, well, please do not. Im not paid to write it.

Faizee Rajper | 11 years ago | Reply Technically speaking there is lack of knowledge about the potential and viable mineral resources, Exploration, Development, production of such like precious metals, Mineral policies and legislation followed by developed nations regarding the matter. Beside the Reko Diq Chapter there are many other potential economic resources are being mined from dfferent area of Pakistan, Like Copper (Saindak), Chromite and manganese (Muslm Bagh, Dalbandin and Khuzdar,) Antimony (Qila Abdullah and Kharan,) Onyx Marble (Chagai District), iron (Chagai and Bela districts), Verona (Naa)l, Balck Limestone (bela and naal) Coal (Thar, Harnai, Duki, Chamalang, Much, Shahreg, Lakhra, Sonda Makarwal, Hangu) Indus Marble f(Thatta), Granite (Mansehra, Nagarparkar,) Cement (Super Highway), Hill sand, Reti Bajri) and Silica sand (around Karachi and hydreabad,) Barite (Haripur, Khuzdar) Lead Zinc (Bela) Salt (Khewra, Tharparkar) and round about all mineral and gemstones from Northern Areas.. But no one is going to highlight the actual corruption charges going with the mineral potential of Pakistan. There is no any method to be adopted for the exploration of all above areas with planning and using advance technology.. there is no any area except Saindak where advance technologies are being adopted for mining.. only conventional mining techniques and exploration techniques are adopted.. Govt of Pakistan has to take serious steps towards the exploitation of mineral resources.. InshaALLAH there will be no need of foreign debts and loans….

Tanweer Ahmed | 11 years ago | Reply No one either Farooq Tirmizi or me said that there was no kickbacks in award of the contract, I don’t know. Secondly, there is also no dispute over the fact that the natural resources of Baluchistan belongs to Baluchistan and the very first beneficiaries should be people of Baluchistan, I mean PEOPLE, not leaders. As far as refining the ore is concerned, putting up a copper smelter plant is another expensive venture and in my comments I have just given a possibility how to have that. It does not mean that is the only possibility. There are people with ideas smarter than me, there are Pakistani people more patriotic than me. The sole purpose of my comment was to show just one of many ideas how Pakistan in general and Baluchistan in particular can change their fate still living within the available resources but only with a proper planning and management of resources.

Tanweer Ahmed | 11 years ago | Reply @Aqeel: The 20% profit share is suggested after they have already recovered their investment with reasonable profit thereon in a 10 year period of high ratio.

Bilal | 11 years ago | Reply Agreed with Tanveer……Good comments…. I hope it happens in future..

Naveed Baloch | 11 years ago | Reply Well first to the writer: I believe your arguments are not corroborated with the International Contracts of that ilk. You must have come up with some data and genuine arguments,regarding such contracts.As mentioned by shameel baloch,what proof do you have that the previous government had not got any Kickbacks? As cited by the writer that Balochistan will get 25%, but of What? The main issue is not the exploration but rather is the refining and processing unto a finish product. Who will evaluate what quantity of Gold, copper or other metal of what percentage has been refined from tones of ore(as in the case of Sandak). Moreover, this is the the issue of the Balochs, and it is the wealth of the Balochs, it is our exclusive right to decide, how, when and who will explore the the resources of the Baloch. And @ Mr. Tanweer, citing the exmaple of Oman, i must remind you that the Sultanate of Oman can not be compared to the countries like Pakistan, who have done nothing but to plunder the wealth of the supressed nations, where as the Omani’s, they stand on their terms. Besides, we can not me duped further on the so-called “development”, we have seen with our eyes the profligate use of our natural resources like the sandak project handed over to the China to cajole them to get some ammunitions, and the Sui Gas.

Jamil | 11 years ago | Reply @Tanweer Ahmed: kudos Mr, Tanweer, Pakistan we need people like Tanweer who could discuss an issue. all the previous comment shows that mediocres are rampant in our country. well anybody else who could out-excel Tanweer’s suggestion????

Iftikhar Ahmad | 11 years ago | Reply @Tanveer Ahmed. Nice & realistic comments

hassan | 11 years ago | Reply @ zain magsi.. clearly the corrupt politicians are missing out on big piece of pie.. hence the shouting and politicizing.. This author is talkn sense.. If this deal does not go through, pakistan will be black listed by investors.. Alot is at stake.. Baloch leaders are the worst form of leaders in pakistan’s history. They have and never will work for the baloch ppl. Pakistan will never be able to extract from the mines.. and if hypothetically lets say we have the fund and resources,, the amount of corruption to happen in the deal would be enormous.

Aqeel | 11 years ago | Reply Hi Tanveer, What is the place your are talking about, If Pakistan, I think you forgot we are living in it and we are not even sincere with Pakistan, that is why PPP, PML N are repeatedly given chances… and every single of us is corrupt, I will go for a strong degree mean……. Your thoughts were good for a fiction, mostly about 20%, what company on earth will accept that after investing the risk money for finding the reserve and carried out every thing. Better was not to allot the license in the first place…

Tanweer Ahmed | 11 years ago | Reply first of all thanks to Farooq Tirmizi for bringing some basic facts. There is a very glorious example of oil exploration in Oman. The people of Baluchistan may well be compared with those of Jebel Fahud of Oman. They were the biggest hurdle in oil exploration out of their ignorance, but finally they are the people who benefited most of it and today Oman is a prosperous country. I feel the ongoing war among our politicians is the result of some big wigs not getting their expected share out of the deal. If 52% of the overall revenue goes to Pakistan, the deal in not bad. But here I have some suggestions. The deal should be for a limited period not exceeding 10 years or so. Upon expiry of the 10 year period, the company will have the choice to leave the country leaving behind all the infrastructure so that further exploration should be continued by Pakistan independently. Or the contract may be renewed with less share in profit for The Tethyan Copper Company, say 20% and 80% to Pakistan. This is because the company by that time has already recovered their investment with reasonable margin, Local people have developed enough expertise to continue operations independently. In parallel to the Reko Diq exploration project, government should launch another company for copper refining plant. and each penny of the income from the exploration should be invested into this project in proportional partnership among Federal Govt, Baluchistan Govt and private investors. By the time copper refining plant is in operation, Pakistan will invite top manufacturers of wind power plants (like Siemens, GE etc.) to setup their manufacturing facility in Pakistan. As an attraction, the government will provide refined copper from the above copper refining plant at cheaper price. By now we have the copper exploration and copper refining plant, whose income will again be reinvested to purchase locally produced wind power plant and install them across the whole of coast line stretching from Kuntani Kaur (bordering Iran) to Chan Belo (bordering India). The whole stretch is over a 1000 km which can accommodate the number of wind powered power plants to suffice Pakistans electricity needs to the next century. No need of foreign loans, The people of Pakistan gets very very cheap electricity. We have got developed technology for metal exploration and refining. Wind Power Plants are produces in Pakistan and exported worldwide. Cheap electricity will bring boom in industrialization, agriculture and trade. Huge employment opportunity for the whole population of Pakistan. No, unemployed youth means least crime, no one available to terrorist organizations for recruitment. FINALLY: Peaceful, happy and prosperous Pakistan.

Nadir | 11 years ago | Reply The question now is that sense emotions are charged and ripe for manipulation, if the SC rules in favor of TTC, will people accept such an outcome?

Aqeel | 11 years ago | Reply Great Work ,,, Why we accept different theories so quickly! I am talking about negative hype against TTC. Who is talking the truth, Govt ! I seriously doubt as they just care about their pockets only. As for TTC, there are other companies in that region. They are given 100% lease percentage and Govt is only given Tax + Royalty.. At least TTC has given 52 % profit to Pakistan. I think this is the best deal in regards to the others. Smelter, why Govt is not going for this smelting project on its own, if they are really so sincere, If they succeed that will show the potentional if there is excpet corruption. I really do not feel in that way, as I am seeing the situation of PIA, Railway, Pak Steel, Wapda, etc…..let me know is there a project that is run by Govt and is giving the profit. As far the percentage of Ore, well ,, have any one heard the term auditors, and What the Partner will be doing that time,,,, GOB,, It is its responsibility to make sure everthing is clean.. As per TTC they have full rights over every thing. The last thing, why we trust everything that we listen. Vote for PTI = Vote for Pakistan

Xaki | 11 years ago | Reply I think government should look into other options as well. and most of the value addition should be done inhouse to provide our people oppurtunities and get most of it.

Aqeel | 11 years ago | Reply I do not know why we just trust in words of politicians/media, good for nothing, no morals and nothing else…. I seriously believe there are very few which are not working on agenda of personal benefits. This article is written good and I totally agree: TTC should be given the extension…. as for the reality concerns. There are numbers of other companies in that region, and all of them are given 100 % ,, No share for GOB, is that beneficial for the country.. at least in TTC case 25 % is of GOB, which make 52 % profit for Pakistan. As for Smelter, why Govt can not make of their own, if they really are so sincere for the National Treasure;;;; Some one above said IMF,,, Hi big dude, are you familiar with the word RGST….. this was horrible idea…..

Farooq Tirmizi | 11 years ago | Reply Mr Magsi, all I can say is that I would be a lot richer if I was being paid to write articles such as this. But take a look at the stuff I write (on the business pages of this newspaper). You will find that I am genuinely an unapologetic capitalist.

Zain Magsi | 11 years ago | Reply Does anyone here believe that, after all the negative publicity that TCC is getting, where billions of US dollars are at stake, that TCC will not bankroll journalists to defend the deal, which otherwise may be dubious?

Rizwan Aziz | 11 years ago | Reply If nothing else, this article proves that one should not write articles on subjects upon which one doesn’t have a command over. In talking about the benefits of the percentage share of the Balochistan government in the project and the revenue benefits to the government, the author has missed the point by miles. If I tell you that 1 sq. ft. of earth in your backyard is worth 1,000 rupees and I will extract it myself and give you 25% share, does this mean you should jump with joy? This is what the author is implying. What if you find out after signing an agreement with me that that, in fact, I lied to you and 1 sq. ft. of earth is not worth 1,000 rupees, it is actually worth 100,000 rupees? If you then try to get the agreement cancelled, I guess Mr. Faisal Tirimzi here will write an article on how you’re trying to get kickbacks, how bad you are towards investors, that you’re creating hysteria, etc.

Deen Sheikh | 11 years ago | Reply Farooq Tirmizi, you should do a show about this on Express news, urdu, so u can reach a wider audience on pro business and investment initiatives and discuss how corruption is biting the apple again.

Nisar | 11 years ago | Reply Sorry, but sound like being paid by TCC!!!

Copper | 11 years ago | Reply The matter is not as plain as portrayed here, as several pointed out, its very dubious deal because the ore will not be processed here. If we can process it (as it seems from several account) it will add much more value.

Shameel Baloch | 11 years ago | Reply @Faisal: Faisal, you’re 100% correct. It’s not about percentages as the author is claiming, it’s about yield of copper and gold in a given square foot of earth. TCC will dig out the earth containing gold and copper, liquify it into a slush and put it into a pipeline to Gwadar from where it will be exported on ships to smelting plants (indirectly owned by TCC). You will not know how much copper or gold has been extracted because it is based on a general estimate, which is low and suits TCC. TCC will end up exporting $100 billion worth of gold and copper for $10 billion.

Shameel Baloch | 11 years ago | Reply The author is wrong. How does he know the Musharraf government did not receive kickbacks? On what basis is he laying this claim. The deal sticks because valuable gold and copper will be extracted and exported at throw-away rates because it will be in unpurified form. You’ll getting dirt rates because the raw material will be unprocessed.

Faisal | 11 years ago | Reply I believe the majority of the alleged $3.3 Billion cost is in setting up of the 1000+km conveyer belt to trasport the ore to the coast from where it will be shipped to a smelter. Won’t the project make much more sense if the smelting is done in country? It might just be possible to put in a smelter for this kind on money! Somebody said that TCC is just a mining company and does not do any processing. That sounds really strange, the whole point of a mining company is too mine the ore, process it and then sell it, and here comes TTC which does not have smelters or precessing and they are just a mining company. I think the whole idea of shipping the raw ore is absurd and is being precisely done to defraud the local shareholders, since it will be very difficult to find out the actual yield even through sampling etc. Whether the deal is being scrutinsed to put pressure on TCC or to get some additional kickbacks. The whole TTC proposal is quite dubious and especially when number like $220 Million for exploration and $3.3 investment are bandied about with abandon.

Zulfiqar | 11 years ago | Reply Excellent.As per Samar Mubarakmand, in 1998, during Nuclear explosion, six chickens were cooked in a HANDI,which were consumed by hundreds of people but the Handi remained full.Instead of wasting his talents in mining,his services should be utilized in preparing such HANDIEs, of all eatables, in every nook and corner, of the Country.The main issue, of unprecedented price hike, of daily items would be controlled.It would be more productive than Reko Diq.

Ahmed | 11 years ago | Reply Why not getting the loan from IMF for this productive project and do it yourself, which can lead to pay off all the debts?

Meekal Ahmed | 11 years ago | Reply Excellent.

ArifQ | 11 years ago | Reply Bravo! Excellent explanation, as for the smelting argument, State of Pakistan if they can afford the expenditure can setup their own smelters then the miners will have no choice but to refine the raw material locally. Unfortunately, the only reason why smelting is being bandied as a reason to scuttle the deal is to ‘extract’ bribes from the companies in charge. just imagine the numer of jobs that will be created, Government of Pakistan can mandate the mining companies to train people locally. Honorable CJP, sad memory of Pakistan Steel Mill is still very fresh, please do not allow this deal to go sour.

Sadiq Khoja | 11 years ago | Reply we want 100% not 52%.

Assad Baloch | 11 years ago | Reply It is nothing just to politicize the Reko Diq issue to blackmail the Tethyan Copper Company for getting some personal benefits, as we all know Pakistan don’t have such expertise to mine such a big project, and with Chinese we have already a bad experience in Sandak project at Chagai, it is therefore Tethyan Copper Company is the best option.

Aqeel | 11 years ago | Reply As per my knowledge TTC has said, They will never go for smelting business in Pakistan but TTC can provide aid to the project if Govt is doing it. TTc is very right in their place as they are in minning business and have no smelter in any part of the world. As far sending the Ore is concerned: My dear what Govt will be doing then, Govt is the partner, they have 100% right to monitor each and everything and even this has to pass through custom as per my knowledge. As for Vidyut, if you are Pakistani/ no problem if Indain, we do not need your smart advice / comments.

Awab Alvi | 11 years ago | Reply This deal has been brewing since 2004 – it took 6 years for it to be officially questioned, What I think irks the people of Pakistan is that when major deals are kept under the carpet there is more foul play then what meets the eye. Musharraf and his team bartered some deal, whatever it might be, we all suspect some serious money must have changed hands. Now with Zardari eyeing his own piece of the cake must have tried his damnedest to extract his pound of flesh, unable to negotiate anything thing to his liking, Riko Diq has now been thrown to the dogs. As if to say, go fend off a public outcry Our questioning is more along the lines, to ask for transparency on such major financial dealings Lets not be naive about our corrupt leaders eye the Millions or Billions changing hands

Shariq | 11 years ago | Reply All the politics and bribes talk aside. Only thing I see is the company will be free to ship raw ore anywhere they want (correct me if I am wrong). How about instead there should be a clause that processing and smelting needs to happen on our shores using our people. The contract should require the mining company to hire local labor not just for mining and grunt work. They should also hire and train a local person alongside their engineers and managers so that our people get trained and learn from international experts. Plus, if they are required to process and smelt/melt/etc the raw ore here that will once again create employment and help our people.

Damien Thorn | 11 years ago | Reply @zee: Actually it would be a process where a certain amount can be taken and refined to see the percentage of copper, gold and waste… based on that percentage the total amount taken out in weight will be bifurcated… this process of testing could be based on a certain frequency or through third party audits… Zee at times its better for us to trust procedures and let things develop rather than pointing a finger at everyone and calling them a thief with a net result of nothing developing!

Aamir Qureshi | 11 years ago | Reply In my view, the Honorable Court has to take help of the technical experts to make a judgement as they have already called Dr. Samar. However, I fully endorse the point of the writer and Benny that Riko Diq should be mined by TTC but with some preconditions. 1) TTC must refine the extracted metals and other mineral in Balochistan by setting us a refinery there. 2) Local population should be engaged in the mining and refining process (as much as possible with the help of provincial government. 3) The share of the provincial government should be raised by atleast 5%-10%. 4) The whole process of mining and refining should be audited atleast once a year by the Federal governement with the help of an independent auditor of international repute. The Balochistan govt should also make use of this and ask TTC to train the Baloch people along with others for future.

Vidyut | 11 years ago | Reply I think it is more about Baluchistan feeling neglected than the deal itself. Opposing the deal is more like blowing up pipelines. Rather than the deal being evil in itself, it is a tool. Some may call it a weapon in a freedom struggle, others may call it holding a country hostage. I really like the article, because it addresses the issue itself without getting dragged into what it is being used for. Also, like Maheeda says, it seems unethical to renegotiate, from a National dignity point of view, but then I guess the Baloch nationalists don’t care about the word of Pakistan, and Pakistan itself consistently having broken its word at various points and with various entities, the government doesn’t have a foot to stand on, when they can gain a lot from keeping that word. This narrows the government options from a negotiating perspective. This is compounded by another consistent plague for Pakistan – a default suspicion of government motives as being good for the people. If the government made such a big deal, it MUST be profiting them at the price of the common man. Its an assumption that has played out so many times, that no one examines to see if it is true in this case. The other part being that if the deal continues, there is no guarantee that it will not be exploited by the elite anyway.

zee | 11 years ago | Reply author how do you calculate how much company has made since company will ship raw ore abroad for processing. you look another paid conman.

Umayr Masud | 11 years ago | Reply hahaha . 🙂 @Amadeus:

Beni | 11 years ago | Reply I attended a seminar where Secretary of Mining of govt of Balochistan has said in front of local and foreign audiance, and actually showed a slide as well that ” the only equipment of mining we have is this ‘ a person sitting on the rock with a KUDAL in his hands “. The secretary was asking the help of foreign companies to help develop mines in B’chistan. I totally agree with the writer. It is all about BRIBES and blackmailing TTC. The SAD aspact is when even learned scientiest join the bandwagon, about somthing about which they do not hav any idea. O’ Bhai let TTC develop Rekodik. And we can have many other Rekodiq of our own. First learn how to do it please….

parvez | 11 years ago | Reply If the terms with TTC are exactly as laid out by the author in the 3rd paragraph then this scam being perpetrated should be stopped. Very clearly written so that even a layman can understand it.

Aqeel | 11 years ago | Reply Indeed a very good insight after all. Rhodes Oxford Scholar was horrible…. and I am not going to praise him any more…. You are really true, As for the Justices, I agree too but they can have the advice from good experts and the reall ones, in the country / abroad. Not like the horrible Samar Mubarak Mand, I am kind of disliking his praise game or what ever….. Very Good one, Thanks brother for that.

Amadeus | 11 years ago | Reply Finally someone’s making sense here – better than that Rhodes scholar who was fantasizing about his meeting with that Doctor.

adnan | 11 years ago | Reply i totally agree with the writer.our honorable judges have no skills in mining and minerals.and we also dont have resources and skills to extract wealth.we calim to be nuclear power but still our scientist are not able to produce atomic reactors to produce electricity. we will have to think rationally and logically.

Arachnid | 11 years ago | Reply Excellent piece, thank you!

Madeeha Ansari | 11 years ago | Reply It does seem unethical to want to renegotiate now, after letting them do our homework for us. But “national interest” is such a difficult term to challenge..

Aamir | 11 years ago | Reply I think court is in a better position to listen to all view points. In any case we should give fair share to Baluchistan which has already suffered a lot despite pumping out gas for decades. I must say that fast actions needed to reverse negative sentiments of Baluchistan and give them what they actually deserve. I think the present goverment is nothing but a group of looters who have no serious plan and not a single serious member honest to the country. They are just minting money and smiling on kickbacks.

IamConcerned | 11 years ago | Reply The best/ideal decision from SC over this issue would be to allow foriegn company working hand in hand with Dr.Samarmubarakmand (or something of that sort).

Embarrassed | 11 years ago | Reply With all this talk going on about Reko Diq I’ve finally decided to ask the question thats been bothering me all along. HOW DOES ONE PRONOUNCE THIS NAME?

Danish | 11 years ago | Reply Excellent write-up. I wish more people are able to read between the lines and expose these vultures.

Jamil | 11 years ago | Reply Farooq Bhai you may be right or wrong, it is hard to say. why don’t you tell us a bonafide international procedure that is adapted in such circumstances. I do agree with your last point that nobody liked to be used in any manner but the hard question is whom to trust?

TKhan | 11 years ago | Reply Thank you sir for telling the truth.