By Naveed Naqvi
ISLAMABAD: Supreme Court of Pakistan has cleared the way for the start of mining work at the Reko Diq project, one of the world’s top underdeveloped sites of copper and gold deposits after it endorsed a settlement agreement between Canadian firm Barrick Gold and the Pakistani government on Friday.
Canadian firm Barrick Gold ended a long-running dispute with Pakistan last March to start work at Riko Diq but only after an endorsement from the country’s top court.
Under the out-of-court deal, an $11 billion penalty was slapped against Pakistan by a World Bank arbitration court, other liabilities stand waived and Barrick and its partners plan an investment of $10 billion in the project.
The Reko Diq project in Balochistan was suspended in 2011 after the country denied Barrick Gold and Chile’s Antofagasta a licence to develop it. Later Antofagasta left the project.
Chief Justice Umar Ata Bandial, the head of a five-judge panel, read out the operative part of the brief order in court.
“The agreements … have not been found by us to be unconstitutional or illegal on the parameters and grounds spelled out…”. The court further observed Reko Diq deal is not against the apex court’s 2013 decision.
President Arif Alvi had asked the court to review the deal. President Alvi also sought the SC’s opinion on whether a 2013 judgment by the apex court prevented the federal and provincial governments from entering into the implementation agreement afresh.
Copyright © 2021 Independent Pakistan | All rights reserved
