QUETTA: The world’s fifth largest gold and copper reserves have been discovered in the Chagai area of Balochistan, Provincial Mineralogy Department Director General Maqbool Ahmad was quoted as saying by Voice of America (VoA) on Wednesday.
Ahmad said that two multinational companies - one Canadian and the other Chilean - which had been issued licences to explore gold in the Rekodik area 10 years ago, had completed the exploration work and designed a project to extract gold and copper from the sites. The two companies will invest $1 billion in the project, he added.
Ahmad said the project would produce 0.2 million tonnes of copper and 0.4 million ounces of gold annually. He said the Balochistan government would get 25 percent of the earnings from the project that would also create 3,000 new jobs for local youths. online
Re: 5th largest gold, copper reserves found in Chagai
Why 25% of earning why not 100%, where the remaining 75% will be used?
If it was found in Balochistan then at least 50% of earning should be given to Balochistan.
Re: 5th largest gold, copper reserves found in Chagai
^ because people who make investment in costly machines and take risk also have to make some money, right? In many mines deals like this, for example one in Indonesia, foreign companies pay only 30 or 40 percent to local. I agree 25 is very low but may be they can negotiate for 35 or 40 or 50?
Re: 5th largest gold, copper reserves found in Chagai
So you mean that remaining 75% will be taken by the companies investing on the project. My dear it means that 25% of the earning exclusively of Central Govt would be given to the locals, remaining 75% earning will form part of divisible pool. I hope you know that.