The Burden of Reko Diq The International News (Pakistan) November 5th, 2011 |
The Supreme Court
has been hearing the Reko Diq case since November last year. The
exploration licences to look for copper and gold � in the strategically
sensitive area of Chagai in Balochistan � given years ago, were
challenged in the apex court and the issue of awarding a mining licence
has been the real focus. The court, without concluding the proceedings,
gave the Balochistan government 30 days to decide whether it would award
the mining licence to the Tethyan Copper Company (TCC), which carried
out the exploration in Reko Diq for several years under several
licences. Since hundreds of billions of dollars are at stake, in
September the Balochistan government raised 10 basic objections,
accusing the TCC of violating laws and of not disclosing all the facts
and data that it gathered during the exploration phase. The TCC was
accused of providing a feasibility study for only a small part of the
Reko Diq mines, said to be among the top three largest gold and copper
deposits in the world. After a year of fighting the case, it seems that
the TCC, or its parent company Barrick Gold, the largest gold mining
company in the world, has given up its court battle inside Pakistan and
is running to an international court of arbitration. What should
Pakistan do next? Critical decisions have to be taken to save and then
utilise this huge resource. A national policy has to be devised and a
flawless strategy put in place now without corruption and favouritism �
purely in the interest of Pakistan and not any individual, province,
company or political party. The Supreme Court, which is seized of the
matter, has thus to play a pivotal role. The TCC has to cross many legal
hurdles here before it can even file a case internationally. The main
obstacle in its path is a 2000 Supreme Court judgement in the Hubco case
in which the apex court upheld a lower court ruling restraining Hubco
from proceeding with ICC arbitration in London against Wapda and the
government of Pakistan, because Hubco had indulged in corruption in
getting a project. The TCC will try to wiggle out of this, but the SC
has to fix responsibility for violations of law and punish the officials
involved and the company which benefited from these violations and acts
of corruption. |