ISLAMABAD: The Reko Diq project has resurfaced in Pakistan’s policy deliberations at the topmost level. Ali The Federal Minister for Petroleum of Pakistan, Pervaiz Malik, held discussions in Islamabad with the chairman of Barrick Gold Corporation, Mr. John L. Thornton, regarding the present situation of the biggest undiscovered reserve of copper and gold globally, and the most important thing to remember after this meeting is that “it’s moving forward.”
The issues discussed were related to those which pertained to the development, collaboration between all stakeholders, and the milestones required to ensure that the project moves in the correct direction. Nothing was decided during this discussion. However, considering the interest of both parties in the matter, it can be inferred that neither will put off the process any longer.
What Makes Reko Diq Such an Essential Project for Pakistan?
According to Minister Malik, the Reko Diq project holds great promise for Pakistan since it can potentially change the way Pakistan’s mineral industry works and contribute to socio-economic development of the province by creating jobs and attracting huge foreign investments. This particular area is well-known for having lots of natural resources but not much development.
It is in this context that Malik announced the determination of the government to invest in large-scale mining projects, which would contribute towards increasing Pakistan’s natural resource endowment and its capacity to export.
Reko Diq is the kind of project that holds immense potential to bring transformational change in the economy of Pakistan in line with its reform efforts.
Position Stated by Barrick Gold
This was inline with the promise given by the government through the chairman of Barrick Gold, Mr. John L. Thornton, who stood by the stand of his company. As per him, he was sure about the support provided by the Pakistani government towards the project, and hence coordination from all ends was necessary.
Being the manager of the mining operation of Reko Diq, Barrick Gold manages the technology and financing of the entire project. It continues to actively participate in this process so that Pakistani government officials and the international community can be assured of its full commitment to this end.
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Ownership Structure
Reko Diq is a project that is owned through a structure that seeks to combine expertise from abroad with local knowledge. Barrick Gold Company owns half of the business, controlling the operations and bringing in the required resources for the project.
The other 50% is divided evenly between Pakistani state-owned enterprises within the federation that have 25% ownership and the Government of Balochistan, who holds another 25%. This makes sure that provincial stakeholder participation is at the heart of the governance framework of the project, which was deliberately designed for such an objective.
The deal is referred to as an example of a model that integrates world-class international mining capacity with authentic local and provincial control over the developmental process.
Reko Diq Project Its Future
It was stated by both the parties that they will cooperate on all fronts to make sure that the project of Reko Diq is a success in its subsequent phases. It is evident from the talks that any project of such significance needs constant attention at the highest level from both the parties.
In terms of Pakistan’s minerals sector, the coming project of Reko Diq holds a lot of importance for it can bring in billions of dollars in foreign exchange earnings and provide jobs for thousands of workers. It will also be able to bring foreign investors into the province of Balochistan.
