Balochistan to take over Saindak project in October

[Kabira]

QUETTA: The Balochistan government is all set to take over the Saindak copper-cum-gold project in October this year.

It was decided at a meeting between Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and Balochistan Chief Minister Nawab Sanaullah Khan Zehri in Islamabad.

“It has been decided, in principle, that the Saindak project, being run by the Metallurgical Company of China (MCC), will be handed over to Balochistan after the expiry of the five-year lease agreement in October 2017,” said a source.

According to the terms and conditions of the lease agreement signed in 2012, the provincial government had been receiving 25 per cent share of net profit from the Chinese company.

Sources privy to proceedings of the meeting said the Balochistan government, after taking over the project, might either extend the lease agreement with the MCC or float international bids and seek an enhanced share in its profit.

The province, the sources said, had been pursuing its case with the federal government to take over Saindak and explore the precious metals itself after the passage of the 18th Amendment in the Constitution.

Official sources said here on Tuesday that the Balochistan chief minister, during the meeting with the federal minister, maintained that in view of the 18th Amendment, exploration rights of the Saindak project should be handed over to the provincial government.

The meeting was attended, among others, by Balochistan Chief Secretary Saifullah Chattah, Secretary for Mines and Minerals Saleh Baloch and the director general of the Ministry of Petroleum and Natural Resources.

The sources revealed to Dawn that a committee, to be headed by the chief secretary, would hold negotiations with the MCC of China on the conditions of the Balochistan government for an extension in the lease of the project.

The Balochistan government, it is learnt, would be empowered to take any decision about the future of the project and float international bids to award the lease to the highest bidder. “The bidding process will be made fare and transparent.”

During the meeting, Mr Abbasi also assured the chief minister that the a suggestion would be forwarded to the federal cabinet to transfer Rs29 billion investments, which the federal government had made in the Saindak project to purchase heavy machinery, to the Balochistan government as a gesture of goodwill.

Published in Dawn, January 18th, 2017

 

[shhh]

But....

arent chinese coming to take over our land?

 

[aasimanwaar]

25 percent of total profit is too less. ..

 

[salarsikander]

25 percent of total profit is too less. ..

You are more than welcome to claim 100% if you are willing to work and have the capacity to do so. Anything short of that is disgrace and whatever profit you're getting is more than youndeserve

 

[BATMAN]

You are more than welcome to claim 100% if you are willing to work and have the capacity to do so. Anything short of that is disgrace and whatever profit you're getting is more than youndeserve

Investor cut a deal with our consent, next govt. need to watch.. if investor is not cheating, which is most likely in % deals.
All of this is due to corruption, but Pakistanis are well capable to build and run mining industry.
A lot is at risk with non China companies in projects of stretigic nature.
When investor comes from US or UK etc. than major share holder could be India's front man.

 

[Kabira]

25 percent of total profit is too less. ..

Extracting copper, gold, coal etc isn't as easy as it sounds. It need technology, market access, billions of dollars and patience to recover investment. Otherwise Pakistanis has been extacting with axe for centuries and have ruined many coal mines with that.

But if security is improved further in Balochistan then some other company will come forward who will likely pay more.

"Sources privy to proceedings of the meeting said the Balochistan government, after taking over the project, might either extend the lease agreement with the MCC or float international bids and seek an enhanced share in its profit."

But don't expect anywhere near 100% profit.

 

[salarsikander]

Investor cut a deal with our consent, next govt. need to watch.. if investor is not cheating, which is most likely in % deals.
All of this is due to corruption, but Pakistanis are well capable to build and run mining industry.
A lot is at risk with non China companies in projects of stretigic nature.
When investor comes from US or UK etc. than major share holder could be India's front man.

Pakistanis are well capable yet still they can't mine !
I wonder where is the capability.

 

[AZADPAKISTAN2009]

I think 25% for 7 years was decent deal, now as per agreement , the deal should be renegotiated

Personally 65% (State)- 35% (Corporation) should still be quite profitable for new company who takes over or the old company is allotted same deal if they accept the terms.

On good principles the first company from China should get first option to continue to reap rewards for being first to begin extraction.

35% - 40% is still quite lucarative figure for next phase

Having a dependable partner who sticks with you is better then having a undependable partner who leaves thing open for political reasons.

 

[Kabira]

I think 25% for 7 years was decent deal, now as per agreement , the deal should be renegotiated

Personally 65% (State)- 35% (Corporation) should still be quite profitable for new company who takes over or the old company is allotted same deal if they accept the terms.

On good principles the first company from China should get first option to continue to reap rewards for being first to begin extraction.

35% - 40% is still quite lucarative figure for next phase

Having a dependable partner who sticks with you is better then having a undependable partner who leaves thing open for political reasons.

Good point, I mean anyother country will run away after first BLA attack. Balochistan government need to seriosly think before leasing it to anyother country. Otherwise Saindak may become another Reko Diq.

 

[_Khawaja]

How much are they gonna make? If they make a lot of money then state should invest that on infrastructure and social programs to help the people, just like Gulf states do. Another important measure of success is to see how many new jobs these investments create (on all levels).

 

[AZADPAKISTAN2009]

Good point, I mean anyother country will run away after first BLA attack. Balochistan government need to seriosly think before leasing it to anyother country. Otherwise Saindak may become another Reko Diq.

Great to see that you also see the view point I was trying to raise. It is all about a "DEPENDABLE" trustable company who works honestly with you.

To give credit to Baluchistan authorities they provided ample chance for Chinese company to get 75% revenues from Mining project in return for 25%. However after 7 years it makes complete sense to discuss 65%-35% deal.

I would like to see the same company get the contract since they took initiative to invest in Pakistan

 

[Kabira]

Great to see that you also see the view point I was trying to raise. It is all about a "DEPENDABLE" trustable company who works honestly with you.

To give credit to Baluchistan authorities they provided ample chance for Chinese company to get 75% revenues from Mining project in return for 25%. However after 7 years it makes complete sense to discuss 65%-35% deal.

I would like to see the same company get the contract since they took initiative to invest in Pakistan

Apart from MCC, Islamabad also take some share. Federal invested Rs29 billion in Saindak. Balochistan government is asking center to write it off and hand over Saindak to them. Not sure how it will work out. Maybe Balochistan goverment will pay back over the course of next lease.

Or write it off as "good will gesture".

 

[My-Analogous]

25 percent of total profit is too less. ..

After investment made by that company, i think it was a good deal and now they are free to increase profit and may be 75 to 80% profit to Baluchistan will be very good.

 

[shah1398]

25 percent of total profit is too less. ..

In the circumstances they took over, there was not even 1 percent profit possible back then due to the rampant insurgency in the area at that time. Something is better than nothing. On the contrary its another giant step towards giving Balochistan its due share of its own resouces and would play a face palm to all those doing R...di Rona for looting of resouces of Balochistan by Punjabis.

 

[Little Falcon]

Oh My God! 25% profit? Seriously you sold the countries resources for free.