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SC declares agreement for development of Reko Diq mine legal

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  • SC green-lights deal in unanimous verdict. 
  • A presidential reference was filed seeking SC’s opinion on agreement. 
  • The verdict was announced by CJP Umar Ata Bandial.

ISLAMABAD: The Supreme Court on Friday declared the agreement signed with the Canadian company Barrick Gold Corporation for the development of the Reko Diq mine in Balochistan “legal”.

The apex court green-lighted the deal while announcing its unanimous verdict in the presidential reference seeking its opinion on the matter. The 13-page verdict, which was reserved a week ago, was announced by Chief Justice of Pakistan Umar Ata Bandial today.

The court said that the constitution does not allow legislation against national assets, adding that the provinces can make changes in the laws related to minerals.

“There is nothing illegal in the new agreement,” said the court. It added that the agreement was not against the 2013 verdict given by the top court.

The SC also shared that the agreement was not against the environment.

The court also noted that the experts had informed it that the agreement was inked between the federal and provincial governments. However, once the Balochistan Assembly was taken into confidence they backed the agreement.

“As per the Riko Diq agreement, most workers will be Pakistanis. This is not for a single person but for Pakistan. There is nothing illegal in this agreement,” said the court.

The court stated that Barrick Gold Corporation has assured it that labour laws will be implemented and the company will also fulfil its social responsibility.

“The foreign investment bill is not exclusively for Barrick Gold. The foreign investment bill is for companies that will invest more than $500 million dollars,” said the court.

Reko Dik agreement

In March of this year, Imran Khan, who was the prime minister at the time, announced the successful agreement with the Canadian firm for the development of the Reko Diq mine in Balochistan, saying it will create 8,000 new jobs for the people.

“I congratulate the nation and people of Balochistan on successful agreement with Barrick Gold for development of Reko Diq mine,” he tweeted.

In a separate statement, Barrick Gold Corporation confirmed that they have reached an agreement with the federal and Balochistan governments on a “framework that provides for the reconstitution of the Reko Diq project”.

According to the mining company, Barrick “will be the operator of the project which will be granted a mining lease, exploration licence, surface rights and a mineral agreement stabilising the fiscal regime applicable to the project for a specified period”.

“The process to finalise and approve definitive agreements, including the stabilisation of the fiscal regime pursuant to the mineral agreement, will be fully transparent and involve the federal and provincial governments, as well as the Supreme Court of Pakistan. If the definitive agreements are executed and the conditions to closing are satisfied, the project will be reconstituted including the resolution of the damages originally awarded by the International Centre for the Settlement of Investment Disputes and disputed in the International Chamber of Commerce,” said the statement.

Later, the then finance minister Shaukat Tarin shared details of the agreement and said that Barrick Gold would retain 50% of the shares. While the rest of the shares will be divided between the federal government and the provincial government of Balochistan.

The 25% share of the federal government would be divided between the State-Owned Enterprises Oil and Gas Development Company (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Pakistan (GHPL).

Presidential reference

But in October, President Dr Arif Alvi, on the advice of Prime Minister Shehbaz Sharif, filed a reference in the Supreme Court, seeking its input on the deal.

The president had asked two legal questions in reference: (1) whether the Government of Balochistan or Government of Pakistan can enter into an international agreement as per Supreme Court’s Judgment, in Molvi Abdul Haq vs Federation of Pakistan 2013 Case, and (2) if the proposed Foreign Investment (Protection and Promotion) Act 2022 would accord to the constitution?

What is Molvi Abdul Haq case?

Today’s Reko Diq Project Agreement was earlier called Chaghai Hill Exploration Joint Venture Agreement (CHEJVA).

Barrick Gold and Antofagasta Company sought a mining lease extension from the Mines and Mineral Development Department of Balochistan for their exploration in 2011.

The department rejected their request following which the two companies entered into litigation against the governments of Pakistan and Balochistan at two separate international forums, on the basis of $240 million spent by them on exploration.

The government of Pakistan faced a suit for specific performance in the extension of lease in the International Center for Settlement of Investment Disputes (ICSID) while the Balochistan government had to face a case in the International Court of Arbitration (ICC). The ICSID decided the matter against Pakistan, fulfilling all demands of the investor’s companies.

The Supreme Court on January 7, 2013, declared the CHEJVA as illegal, null and void.

The court held that there were severe violations of basic legal requirements and a lack of due diligence in the Reko Diq Project.

The investor companies again filed a lawsuit against Pakistan with the ICSID whose tribunal, in 2019, announced a $6.927 billion award against Pakistan for violation of the agreement. The ICC also ruled against Pakistan but the award is yet to be announced. Legal Experts are of the view that the ICC award against Pakistan will be around $3 billion.

Education

Students from Balochistani start their academic adventure in China.

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China is the destination of ten Gwadar Institute of Technology (GIT) students who are going there for school. They will be pursuing Associate Engineering Diplomas at Hebei Jiaotong Vocational and Technical College after being chosen for the Sino-Pak Dual Diploma Program.

These students had the privilege of seeing the Chinese Consul General in Karachi prior to their departure, where they were greeted with warmth and given support for their future ambitions.

These ten people, who are from Pasni, Turbat, Kech, Panjgur, Gwadar, and Surab, among other places, exemplify the talent and diversity of Balochistan.

The Government of Balochistan and the well-known Chinese corporation Tang are supporting this opportunity, which gives these youngsters a grant to help with their study overseas.

The children would want to express their sincere gratitude to the Pakistan Army and the Government of Balochistan for making this opportunity possible.

They are excited to take advantage of this opportunity to continue their studies and support Balochstan’s growth, especially through initiatives like the China-Pakistan Economic Corridor (CPEC).

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Latest News

Amid controversy surrounding judges’ letters, PM Sharif will meet with CJP Isa today.

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Today’s key meeting between Pakistan’s Chief Justice, Qazi Faez Isa, and Prime Minister Shehbaz Sharif is planned in the midst of ongoing discussions regarding a letter sent by six justices of the Islamabad High Court regarding outside meddling in court cases.

Azam Nazir Tarar, the minister of law, and Mansoor Usman Awan, the attorney general for Pakistan, are expected to accompany Prime Minister Sharif to the CJP meeting.

The meeting follows a full court session that CJP Isa called on Wednesday, with the express purpose of addressing issues brought up in a letter signed by six judges of the Islamabad High Court.

All of the participating judges carefully examined the letter’s contents during the session, analyzing both its constitutional and legal consequences. Discussions about the letter’s publication’s legal and constitutional ramifications were also included in the session.

All of the judges actively participated in the lengthy two hours and twelve minute discussion, offering their thoughts on the subject at hand.

According to sources, the top judge of Pakistan is expected to chair another full court meeting today. It is anticipated that this session would examine the letter’s contents in greater detail, with additional evaluation and discussion among the SC judges.

On Wednesday, the bar associations of the High Courts of Islamabad, Lahore, Sindh, and Balochistan urged that the CJP conduct a “transparent inquiry” into the matter and that those responsible for it face legal repercussions.

Its cabinet “strongly condemned the interference of one institution into the matters of another institution,” according to a press release from the IHCBA.

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Business

Changes in the US dollar’s value are directly correlated with variations in gold prices.

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The price of 24-karat gold in Pakistan increased by Rs1500 on Thursday, reaching Rs231,000 per tola. This was another jump in the price of gold in the country.

Dealers reported a comparable surge in the price of 10 grams of 24-karat gold, which is currently trading at Rs198,045 after rising by Rs1285. In addition, the cost of ten grams of 22-karat gold increased significantly, trading at Rs 181,541.

These fluctuations are strongly correlated with shifts in the US dollar’s value, demonstrating the tight connection between gold prices and exchange rates. This emphasizes how local gold markets are impacted by variables related to the global economy.

At Rs2,580, the price of 24-karat silver remains steady right now. The price of gold increased significantly on a global scale as well, rising by $14 to $2,214 per ounce.

It’s critical to understand that changes in the worldwide market can have a substantial impact on gold prices in Pakistan throughout the day. The gold rates that are offered are obtained from reliable sources, mostly situated in Karachi and Multan.

It is recommended that individuals seek the advice of nearby gold merchants and jewellers for the most precise and current information regarding gold prices.

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