QUETTA: On August 14, the 76th Independence Day, development work on the Reko Diq gold and copper mining project will start, according to announcements made on Tuesday by BalochistanMir Abdul Quddus Bizenjo, the chief minister, and Mark Bristow, the CEO of Barrick Gold. The project will initially start with a $7 billion investment.
At a joint news conference held at the Chief Minister Secretariat, they declared that the Reko Diq project, a collaboration between their organisation, the provincial government, and state-owned businesses in Pakistan, will be a gift to the region.
The news conference was held a day after the Canadian mining company stated that it expected the Supreme Court and Parliament to approve its $6 billion out-of-court settlement through international arbitration, which would allow for a $7 billion investment in Reko Diq.According to Mr. Bristow, the project is anticipated to employ 7,500 people at its busiest point in the construction phase and to provide 4,000 long-term jobs once production begins.
Balochistan’s 25% stake in Reko Diq would be wholly supported by its partners and the federal government, allowing the province to enjoy the dividends, royalties, and other benefits without having to make any financial contributions to the mine’s development or management.
According to the CEO of Barrick Gold, the firm would make social contributions totaling about $70 million during the course of construction, including up-front pledges of up to $3 million in the first year following closing and up to $7 million in the second.Additionally, subject to a cumulative $50 million maximum in advance payments, Reko Diq would advance royalties to the government of Balochistan of up to $5 million in the first year following closing, up to $7.5 million in the second, and up to $10 million per year until commercial production begins.
