Pakistan makes breakthrough in Reko Diq case as TCC agrees over shares

ISLAMABAD: Pakistan made a breakthrough in the Reko Diq case following an out of court settlement with Tethyan Copper Company (TCC) as the firm agreed over 50 per cent shares.

Some media reports have claimed that Pakistan is near to finalising an agreement with Tethyan Copper Company (TCC) to avert a fine worth billions of dollars from an international court.

The company has reportedly shown agreement to possess 50 per cent shares and the successful talks will result in the waiver of a $10 billion fine against Pakistan.

A journalist wrote on Twitter, “Good News for #Pakistan! Huge breakthrough in out of court settlement b/w Pak and Tethan company over recodik case. Both sides agreed on 50% share which Pak had 25% last time. If talks succeeded, 10B$ fine to Pak will be waved off.”

Good News for #Pakistan
Huge breakthrough in out of court settlement b/w Pak and Tethan company over recodik case. Both sides agreed on 50% share which Pak had 25% last time. If talks succeeded, 10B$ fine to Pak will be waved off

— Zulqarnain Iqbal (@zuliqbal007) January 20, 2022

A report published by ARY News stated that Pakistan and TCC are likely to sign the agreement for the equal distribution of shares in February this year.

The report quoted TCC sources as saying that talks are underway with Pakistan to finalise an out of court settlement but it will be given a legal cover this time.

The development was witnessed after Prime Minister Imran Khan’s announcement on December 29 that the federal government will bear all the financial burden for Reko Diq and its development on behalf of the Balochistan government.

PM Imran Khan had announced that the move will help usher in an era of prosperity for the people & province of Balochistan.”

In line with my govt’s vision for uplift of smaller provinces, I have decided our fed govt will bear all the financial burden for Reko Diq & it’s development on behalf of Govt of Balochistan. This will help usher in an era of prosperity for the people & province of Balochistan.

— Imran Khan (@ImranKhanPTI) December 29, 2021

Reko Diq is one of the world’s biggest untapped copper and gold deposits located in Balochistan province and Tethyan Copper Company (TCC) had been granted a licence for gold and copper mining.

The former chief justice of Pakistan Iftikhar Muhammad Chaudhry had cancelled the agreement in which the Tethyan Copper Company (TCC) had been granted the license for gold and copper mining at RekoDiq area which led Pakistan to face a whopping $16 billion penalty which was later reduced to $6 billion after a review petition.

A local consortium National Resources Private Limited had said in a statement in May that a proposal was submitted to develop Reko Diq besides implementing the Tanjeel reserves as a starter project, followed by the development of the vast Reko Diq area reserves.

Balochistan government had confirmed that the proposal is being considered, however, the financial aspects of the proposal were not disclosed.