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A brief history of Rekodiq

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The land of desert (Baluchistan) is the largest province of Pakistan, Baluchistan has least developed infrastructure and education. Baluchistan is abundance of natural resources. Rekodiq is the area of Baluchistan that’s very fertile with gold and copper. Once estimated to be fifth largest gold mine in the world.
Rekodiq mine is located in district Chagai Baluchistan. This mine is one of the largest coppers and gold reservoir in Baluchistan. In 1969 copper was discovered at the location and it was estimated that it has minerals of worth over a trillion $. Latest research estimate that 5.9 billion copper is available in Rekodiq mine with copper grade of 0.41% and estimated quantity of gold available in this area is 41.5% million oz with grade of 0.22 g/ ton.
In 1969, copper was discovered in Rekodiq no development for mining was done in the area until 1992. In 1992 gold miners investigated the area for amount of mineral/ resources present.
In 1993, through an Anglo Australian mining grant the agreement was signed between BHP Billiton and government of Baluchistan. Later BHP Billiton sold 75% of its stake to chilles Antofagasta and Canadian Barrick Gold Corporation that was done for establishing TCC Tethyan copper company and selling it to chilles and Canadian. The purpose of TCC is to study / investigate the area for possible economic mining. The early inspecting team was consisting of some locals, and some foreigners. The early findings of team were quickly forwarded to provisional government and within week Baluchistan government signed an agreement for mining license with TCC in 1992. From 1992 to 2010 company performed different types of studies and provided feasibility report to provisional government in 2010. Tethyan filled application for mining lease that was reject by Baluchistan government on 15 Nov 2011.According to Tethyan Baluchistan government is violating the 1992 agreement. Tethyan states that they have invested 300 million$ in Rekodiq till mining lease was revoked by the government of Pakistan.
In 2012 Tethyan sued against Pakistan government in World Bank Tribunal also known as International Centre for Settlement of investment disputes(ICSID) where this tribunal rejected the earlier decision given by supreme court of Pakistan. ICSID declare decision in favor of TCC with opting formula for compensating loss and expected profit of TCC for 56 years that result in the sum of 5.97 billion$ penalty on Pakistan government. This verdict of penalty was passes in 2019.It was a big mistake of Pakistan government to sign treaty of ICSID. It has been noticed that ICSID has always given decision in favor of developed countries. There are also allegation of not properly hearing view of less developed party. There are many countries who haven’t signed the treaty of ICSID. The name of such countries are Russia, Iran, Brazil, South Africa, India, and Poland. These countries didn’t make the same mistake as Pakistan did by signing the treaty hectically without observing the behavior of this tribunal. Pakistan government plead against the decision of ICSID in Nov 2019 and also request for provisional stay order on enforcement of award against Pakistan government. ICSID is still considering a plead of Pakistan against the penalty. Last hearing was expected to held in May 2021, but no information regarding final hearing is available. There is also an organization named as Convention on the Recognition and Enforcement of Foreign Arbitral Award ( CORE-FAA). It’s a better alternative of ICSID as the decision of CORE-FAA are not biased for developed countries.It hears the view of both parties and decide accordingly with Justice.
TCC initiated the case for the enforcement of reward against Pakistan by ICSID in British Virgin Island (BVI) court on 12th July 2019, and on 16th December 2020 BVI court attached the assets of Pakistan International Airline Investment Limited (PIAIL). Attached assets of PIAIL contains 100% of the shares in the capital of PIA Investments Limited BVI Company, 100% of the shares in the capital of PIA Hotels Limited, 40% of the shares in the capital of Minhal Incorporated. The PIA Hotels own 99% shares in Roosevelt Hotelof Manhattan, New York and Minhal Incorporated own Scribe Hotel.In May 2021 BVI court give the order in favor of Pakistan hasunfreeze the assets of PIA.
The resources allocation/reserve in according to feasibility report are around 5.9 billion ton of copper with average grade of 0.41% and 41.5%million oz of gold grade of around 0.22g/ton whereas economical minable area of Rekodiq mine is expected to be around 2.2 billion tons of copper with grade of 0.53 % and gold grade of 0.3g/ton. If this minable portion is used it will produce 200,000 tons of copper and 250,000 oz of gold contained in 600,000 tons of concentrate per annuum.
Although Baluchistan has huge quantity of natural resources yet its poorest province. there is high need of many development project that utilize on the extraction of these minerals, this will not only provide job opportunities but also improve economy of Pakistan. This is need of time that Pakistan government in coordination with Baluchistan provincial government launch some projects on early basis.