The Tethyan Copper Company (TCC) has alleged that the Licensing Authority of Balochistan Government had violated the Balochistan Mineral Rules 2002 along with violating the TCC’s rights protected under the Chagai Hills Exploration Joint venture Agreement (CHEJVA) on Friday.
The company, in its press release noted that the Government of Balochistan (GoB) had decided to reject a mining lease application for developing the Reko Diq copper-gold deposit. The TCC submitted the application for a mining lease, Exploration License 5 for the Reko Diq in February 2011, following the submission of the Feasibility Study in August 2010.
“The Licensing Authority’s summary refusal to grant the Mining Licence to which TCC is entitled breaches not only the Balochistan Mineral Rules (2002), but also TCC’s rights under the Chagai Hills Exploration Joint Venture Agreement (CHEJVA) and Pakistani law,” stated the Press release.
The GOB did not responded to requests for meetings to resolve the issue, and the Rejection Notice compromises TCC’s preferred route of resolution by negotiation. The Rejection Notice did not address the detailed submissions in TCC’s interim response neither did it address the original grounds set forth in the 21st September Notice.
The release further said that the TCC strongly believed Reko Diq project could contribute significantly to the development of a modern, transparent mining industry in Balochistan, contributing to the local and greater Pakistani economy through large foreign direct investment and through the benefits of ongoing revenue generation and local reinvestment during the mine’s expected 56 year life.
“We firmly believe that our activities to date have been fully in line with the Balochistan Mineral Rules (2002) and would welcome the opportunity to discuss this with the Provincial regulator and the Government,” said Tim Livesey, CEO of TCC. “A project of this type has the potential to kick start the mining sector in Balochistan and would act as a working practice catalyst for further investment in exploration and mining by independent parties. Tethyan is committed to developing its mine at Reko Diq in line with international best practice with respect to the environment, labour, health and safety.”
Responding to TTC’s claims, Balochistan Government’s focal person Ali Madad Jatak rejected the notion that the provincial government had breached any agreement and said that the application for mining licence was rejected because TCC violated the agreement.
Talking to The Express news 24/7, he said that Balochistan has the capability to run the project smoothly. “Chief Minister Nawab Aslam Raisani wanted the ownership of the people over their mineral resources and the decision was taken in peoples’ interest. Exploration licence was granted to an Australian Company in 1993-94 and the company sold its shares without taking government into confidence,” he said.
Tethyan Copper Company Pakistan (Pvt.) Limited is a fully owned joint venture company of Barrick Gold of Canada and Antofagasta Minerals of Chile; both gold and copper mining leaders globally. TCC, in partnership with Government of Balochistan, is evaluating the development of a world-class copper-gold mine at Reko Diq, District Chagai of Balochistan. The company has reportedly invested over US$200 million into the project since 2006.
The company, in its press release noted that the Government of Balochistan (GoB) had decided to reject a mining lease application for developing the Reko Diq copper-gold deposit. The TCC submitted the application for a mining lease, Exploration License 5 for the Reko Diq in February 2011, following the submission of the Feasibility Study in August 2010.
“The Licensing Authority’s summary refusal to grant the Mining Licence to which TCC is entitled breaches not only the Balochistan Mineral Rules (2002), but also TCC’s rights under the Chagai Hills Exploration Joint Venture Agreement (CHEJVA) and Pakistani law,” stated the Press release.
The GOB did not responded to requests for meetings to resolve the issue, and the Rejection Notice compromises TCC’s preferred route of resolution by negotiation. The Rejection Notice did not address the detailed submissions in TCC’s interim response neither did it address the original grounds set forth in the 21st September Notice.
The release further said that the TCC strongly believed Reko Diq project could contribute significantly to the development of a modern, transparent mining industry in Balochistan, contributing to the local and greater Pakistani economy through large foreign direct investment and through the benefits of ongoing revenue generation and local reinvestment during the mine’s expected 56 year life.
“We firmly believe that our activities to date have been fully in line with the Balochistan Mineral Rules (2002) and would welcome the opportunity to discuss this with the Provincial regulator and the Government,” said Tim Livesey, CEO of TCC. “A project of this type has the potential to kick start the mining sector in Balochistan and would act as a working practice catalyst for further investment in exploration and mining by independent parties. Tethyan is committed to developing its mine at Reko Diq in line with international best practice with respect to the environment, labour, health and safety.”
Responding to TTC’s claims, Balochistan Government’s focal person Ali Madad Jatak rejected the notion that the provincial government had breached any agreement and said that the application for mining licence was rejected because TCC violated the agreement.
Talking to The Express news 24/7, he said that Balochistan has the capability to run the project smoothly. “Chief Minister Nawab Aslam Raisani wanted the ownership of the people over their mineral resources and the decision was taken in peoples’ interest. Exploration licence was granted to an Australian Company in 1993-94 and the company sold its shares without taking government into confidence,” he said.
Tethyan Copper Company Pakistan (Pvt.) Limited is a fully owned joint venture company of Barrick Gold of Canada and Antofagasta Minerals of Chile; both gold and copper mining leaders globally. TCC, in partnership with Government of Balochistan, is evaluating the development of a world-class copper-gold mine at Reko Diq, District Chagai of Balochistan. The company has reportedly invested over US$200 million into the project since 2006.
