Saindak Agreement

16 December 2020, 12:59 | Uncategorized | Commenti: 0

The Public Finance Committee (PAC) of the Balochistan Assembly has declared the lease agreement for the Saindak copper-gold project “unconstitutional”. In principle, Balochistan was allowed to take over the Saindak project. It can make any decision about its future and make international offers for the award of the lease of the mines to the highest bidder. And while the state government and the federal government had in principle decided that the Saindak project would be handed over to Balochistan after the last five-year lease expired last October, the Saindak project was again leased by the federal government for a new mandate, although that is not its constitutional right. During the meeting, President PAC called for legislation that the federal government has signed agreements with international companies for provincial projects. “The province can explore precious metals even after the 18th Amendment is passed,” says economist Syed Fazl-e-Haider. “The exploration rights for the Saindak project should have been turned over to the provincial government after the 18th Amendment was passed. Under the lease signed in 2012, the province received only 25% of the Chinese company`s net profit. “The deposits at South and North Ore Body are almost depleted and soon there will be nothing to explore, so we have contacted the government to renew the lease and contract for the development of the Eastern Ore Corps,” Mehmoodi said. April 1974 creating resource development corporation, owned and managed by the Pakistani government. Subsequently, the company became Saindak Metals Limited (SML) and was responsible for the mining of copper and gold in the region.

Although it was operational in the rest of the 1970s and 1980s, it did not come into force until the 1990s, after entering into an agreement with a Chinese company called China Metallurgical Group Corporations (MCC). The pact was to build the Saindak copper-gold project turnkey. Last Friday, the provincial administration of Balochistan informed the federal government that it had extended the stay of the Metrological Construction Company of China (MCC), which entered into an agreement with the federally owned Saindak Metals Limited (SML) to allow the foreign company to continue exploration and development activities in the region. But the question of ordinary procedure cannot simply be set aside. Residents say work on the northern ore body has already begun before Pakistan signed the lease agreement for the Saindak project at the MCC in Beijing on October 16, 2017. The company`s contract was due to expire on October 31, 2022. In a letter to the federal Department of Energy, the Balochistan administration stated that an extension of the lease would “guarantee $45 million in investment by MCC/SML at its own risk for the exploration and development of Easter Bodies in Saindak.” After visiting the places close to the Saindak project, especially on the border of Taftan, there is a lot of weight in the chicken of the inhabitants. The legend of the subsidence of the mountains does not stand up to the evidence, but the state of helplessness of men is almost palpable. A senior Pakistani customs official, who requested anonymity, told Eos: “Under an agreement, 5% of the total revenue from the Saindak project should have been spent on the well-being of the local population, including Taftan.” “The agreement included an $84 million facility clause against which the contractor (MCC) was required to provide equipment/machines,” the official document from the provincial mining department states.

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