Quetta Pakistan /26 December Baluchistan provincial govt has passed a motion to terminate the contract for $ 65 Billion Copper and Gold project in Reko Diq Baluchistan. Minister Sadiq Umrani leading the termination move alleged Tethyan for exceeding the limits of the contract to include, subletting the copper and gold excavation to Antofagasta, Barrik etc without the permission of Baluchistan government, whereas the contract was awarded only for drilling purposes. In addition he also hinted upon unnecessary delays in the initial phase by Tethyan.
The controversy over the Reko Diq project had set in from the beginning as Tethyan is alleged for being a puppet company raised by multinationals like Barrik etc just to cover up the environmental and other project related reservations. Tethyan a company which strengthened itself by floating shares only after award of the initial contract was believed to be not worthy of handling and affording the project.
The most crucial factor remained the profit margin offered to the Baluchistan government as they were expected to invest $ 5 Billion as their share whereas their total profit was also equivalent to $ 5 Billion as the initial investment on behalf of Baluchistan government was to be managed by Tethyan and the interest would have brought the profits in negative. Tethyan projected that the actual benefit would be in the services and facilities being developed as part of the project and those which would be hired from Pakistan. The company also wanted top develop a port of its own for the project just 30 Kilometers to the east of Gawadar port. The rumours of corruption and kickbacks also played their part in denouncing the deal.
Deadlock between Tethyan and Baluchistan government was being observed over past two months with rumours of similar outcome as the national media had started highlighting the rise in gold prices and under estimation of the project worth, which is now being estimated at over $ 100 Billion. The controversies over low profits, environmental side effects and plundering of natural resources had played their part.
CM Balochistan Nawab Aslam Raisani and The minister Minerals Mr. Sadiq Umrani are now being termed as Baluch heroes in an insurgency ridden province and are being looked upon as flag bearers of reconciliation. The way forward being appreciated by the leaders include running the project at their own with aid of federal government, with a series of benefits for local masses including shares for residents of the area etc. The Government is believed to be looking for friendly investors and technical expertise to manage the project indigenously.
Re: TETHYAN LOSES REKO DIQ CONTRACT
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