Major Breakthrough: Pakistan and Tethyan Copper Company(TCC) have agreed over 50 per cent shares over Reko Diq

[Menace2Society]

When the Europeana first established Mines, who did they turn to for advice?

Or when the Americans explored their frontier for oil. Over 100 years ago!

 

[Norwegian]

50% of what?

Profits

 

[Kaleem.61]

Why do people not finishing reading the thread before hitting the reply button. We've already discussed this point.

Why don't you ignore?

Shit can be anywhere. So, smile and move on.

Which picture you are talking about Profile or Shiq no. 6?

Yes Profile is some thing (as compared). Damn a lot of in one frame!

 

[AZADPAKISTAN2009]

We don't have capacity to spend 10-50 Million Dollars to bring machinery to do mining from China and get 100% share

We are happily giving away 50% stake in Gold/Mining Reserves what am I missing here ?

Not feeling the news sorry , a company which did 0% extraction or even did not extra 1 gold brick is getting 6 billion Dollar?

Only Positive News
> No fine due for 6 Billion Dollar , if Pakistan and the Foreign Company agree to 50%- 50% profit share
> Pakistan's share risen from 25% to 50%
> Tethyan Comany will possibly make money if the reserves turn out massive
> Origionally the Thethyan company wanted to extra the raw material to foreign land and then tell us if gold was extracted or not , I hope all the refinement is done in Pakistan so we have proper tracking of Tones of Gold being extracted

 

[Imad.Khan]

Mining and related value adding foundries/refineries as an industry alone has the potential to dig Pakistan out of this economic shithole that its been stuck in for decades. It will create massive number of jobs and with its income propel Pakistan towards prosperity.

Take a look at Australia, Mining is its most lucrative industry, without it Australia would just be an Agricultural country just like Pakistan.

 

[AZADPAKISTAN2009]

Lessons Learned from Ordeal

I read the actual court documents and the last 3 paperwork released from courts recently and learned some interesting things

Tethyan Copper Company Pty Limited v. Islamic Republic of Pakistan, ICSID Case No. ARB/12/1 | italaw

www.italaw.com

• Tethyan , claimed they had invested almost 224 Million Dollars when they were told to stop. Everyone knows nothing was extracted or dug out in their feasibility study. Why is that Figure of expenses 224 Million Dollars god knows , because we all know for that kind of money China can finish 4 Nuclear Plants

• Tethyan , brought Pakistan to World Bank's Tribunal, using the provisions on Australia - Pakistan Bilateral Investment treaty , according to which it was stated Pakistan can be Sued in World Bank should they hinder any investment done under the Bilateral Agreement from a Australian Company

• USA , as part of World Bank network it has indirect treaties , which allow it's courts to accept any Decision Passed thru the World Bank Courts, and it's courts will treat the decision as one carried out by USA courts , this is why Pakistan's state's international Assets were forcefully confiscated when the decision came against Pakistan , like Pakistan was some small time criminal

• There was a $700,000 USD interest , which was being charged "Daily" on pending amount Pakistan had to pay since 2010.

• International Lawyers defending Tetheyan added their own Expenses to Charged 63 Million Dollar fees

• The Recent USA-Australian Defence pact also showcases why the courts of two countries operate closely

One of Major objections from Courts in Pakistan was that Tetheyan , wanted to extract , unknown amount of material from Pakistan and transport it without any checks or verification to foreign land and then complete the extraction and declare what they would there was risk that they would under-report the Gold or Mineral Dug Out. Pakistan wanted the process to be done on Pakistani Soil so that it Profits can be 100% Earned from correct Figures




The Origins of Case sine 1993!!!!
Not a single bar of gold were ever dug out
Mean while Look at China Coal Mines in Sindh are digging out Assets in 4-5 years

3. On 29 July 1993, BHP Minerals International Exploration Inc. (“BHP”) and the Balochistan Development Authority (“BDA”), a statutory corporation of the Province of Balochistan in Pakistan (“Balochistan”), entered into the Agreement for Chagai Hills Exploration Joint Venture (“CHEJVA”; Exhibit CE-1), which established the unincorporated contractual Chagai Hills Exploration Joint Venture (the “Joint Venture”) with the purpose of exploring for deposits of gold, copper and other materials in the Chagai district of Balochistan. Pursuant to the terms of the CHEJVA, BDA held a 25% ownership interest in the Joint Venture, while BHP held a 75% interest in return for agreeing to fund the costs of exploration and any feasibility studies to be conducted under the CHEJVA.

34. The statutory legal regime which regulates the exploration and mining activities is contained in the 2002 Balochistan Mineral Rules (“BM Rules”; Exhibit CE-5). The BM Rules provide, inter alia, that the Technical Head of the Directorate General of Mines and Minerals (the “Licensing Authority”) is the authority to which applications for mineral titles or mineral concessions should be submitted and which is empowered to grant mineral titles and mineral concessions pursuant to the BM Rules.

35. On 4 March 2000, the Government of Balochistan, BHP and BDA entered into the Addendum No. 1 to the CHEJVA (“Addendum No. 1”; Exhibit CE-2) pursuant to which the Government of Balochistan and BHP confirmed their intention that all references to BDA in the CHEJVA were deemed to refer to the Government of Balochistan. Based on two other contracts, an Option Agreement and an Alliance ICSID Case No. ARB/12/1 7 Agreement with BHP (Exhibits CE-12 and CE-15), Claimant subsequently took over from BHP the exploration activities in the Chagai Hills exploration area.

36. On 30 November 2000, Claimant established Tethyan Copper Company Pakistan (Private) Limited (“TCCP”) as its wholly owned Pakistani subsidiary (Claimant and TCCP are collectively referred to as “TCC”).

37. In May 2002, the Licensing Authority granted “M/S. BDA/BHP Chagai Hills Joint Venture”, i.e., the Joint Venture, the Exploration License EL-5 (“License EL-5”; Exhibit CE-16), which originally covered 973.75 square kilometers in the Reko Diq area. License EL-5 was initially granted for a period of three years from 21 February 2002 to 20 February 2005 and was subsequently renewed on two occasions through 19 February 2011. The area covered by License EL-5 was reduced first to 482.72 square kilometers and then to 435.02 square kilometers (Exhibits CE-17 and CE-20).

38. On 1 April 2006, Claimant became a party to the CHEJVA pursuant to a Novation Agreement with the Government of Balochistan and BHP (the “Novation Agreement”, Exhibit CE-3), and replaced BHP as a party to the CHEJVA with a 75% interest in both the Joint Venture and its principal asset, License EL-5. Claimant then transferred its mining rights, including the 75% interest in License EL-5 and certain other assets and liabilities, to TCCP (Exhibit CE-21). The remaining 25% continued to be held by the Government of Balochistan.

39. From 2006, Claimant together with TCCP carried out an exploration program, as envisaged by Clause 7 of the CHEJVA, in the Exploration Area delineated in Schedule B of the CHEJVA, known as “Reko Diq”.1 Part of Reko Diq is the deposits Tanjeel (H4) and the Western Porphyries (H13, H14 and H15). 1 Request, para. 38 et passim. ICSID Case No. ARB/12/1 8

40. In early January 2009, the Chinese state-owned company China Metallurgical Group Corporation (“MCC”), which operates a mine close to Reko Diq, was invited to submit a financial and technical proposal for Reko Diq to the joint Government of Balochistan/Government of Pakistan Reko Diq Steering Committee (Exhibit CE69). Beginning in May 2009, while Claimant was carrying out its exploration program, Balochistan and the Federal Government also began to consider an alternative proposal for Reko Diq submitted by Dr. Samar Mubarakmand (“PC-1 Proposal”), which provided, inter alia, for the construction of a smelter in the Reko Diq area.

41. On 26 August 2010, after completing a scoping study in October 2007 (analyzing fourteen project development paths and recommending four options), a prefeasibility study in July 2009 (focusing on a base case configuration centered around the Western Porphyries but also including a significant amount of analysis regarding Tanjeel) and an expansion pre-feasibility study in July 2010 (envisaging an expansion to Tanjeel and H13 in the sixth year of the mining operation), TCC formally submitted the feasibility study envisaged in the CHEJVA (the “Feasibility Study”) to the Government of Balochistan. The Feasibility Study examined the technical and economic feasibility of a base case mining project centered on the Western Porphyries and also contemplated its future expansion to Tanjeel and other adjacent ore bodies.

 

[GOAT]

This 50% includes taxes and not just royalties.

Are you sure? The article states 50/50 split of shares which would normally mean any corporate taxes and royalties would be in addition to profits. Also, it would be interesting to see the approach taken to corporate governance, specifically what sort of decision rights the GoP will have.

 

[Imad.Khan]

Are you sure? The article states 50/50 split of shares which would normally mean any corporate taxes and royalties would be in addition to profits. Also, it would be interesting to see the approach taken to corporate governance, specifically what sort of decision rights the GoP will have.

well i could be wrong but logically speaking if taxes are on top then it wouldn't be a profitable exercise, so why would a private company agree to it.

 

[AZADPAKISTAN2009]

The project needs to start "Extracting Gold and Minerals" it's been started since 1993

• Useless Studies
• Consultant Fees
• Reviews
• 10 Year Court Tussle

1993 ~ 29 Years and No Gold, No Copper , No Minerals !!!! Folks Just Talk Talk Talk

Chinese companies started work in Sindh and Look how quickly they made Coal Mine Operational in Sindh !!!


If Project was completed in 2000 , we would have had a massive Gold / Copper and other Mineral Storage facility in last 20 years , how many Projects Pakistan Completed , how many Projects Pakistan-China cooperation completed in 20 years so many projects.

This company should have been forced to provide deadline when Project is completed

 

[FuturePAF]

Its not $1b but seal of approval from IMF. Otherwise Pakistan will not get $14b per year from lenders. Hell even Saudis put IMF condition before lending.


Only part of mine will be developed by TCC, 20-25%. Rest is up for grabs later on. Overall its estimated $1 trillion worth.

All the more incentive for our own national mining companies to learn from TCC and take the money earned from the mine to build themselves up. Any indication the work will be a joint venture in any way?

 

[Hyde]

As far as I remember, this is the other side of the story

Tethyan was awarded this contract when there was no guarantee of we will ever find gold in Reko Diq. It was a contract on find, invest, extract, get share basis so Tethyan was taking big risk for this investment. We have similar gas field projects when the companies are awarded contracts in hope that they will find oil or gas and and we can start extracting it

So Tethyan found the gold and copper reserves thousands of meters down the earth… it was valued over 60 billion dollars at that time… (should be worth a lot more in 2021) … so the Government started drooling and potentially finding excuses to come out of the contract… we saw the consequences of it

There are very few companies in the world who have the technology to extract gold at this depth so Tethyan is one of the most renowned one… original contract was also 50-50 basis with the the government earning 25% shares from extraction and another 25% from taxes making it effectively 50-50 so I am not sure if the new agreement is the rephrasing of the old agreement or tethyan is actually willing to give 25% share from their pocket especially when the have won the case in the court and can potentially earn billions of dollars for free in penalty

 

[Danish Moazzam]

As far as I remember, this is Theo the side of the story

Tethyan was awarded this contract when there was no guarantee of we will ever find gold in Reko Diq. It was a contract on find, invest, extract, get share basis so Tethyan was taking big risk for this investment. We have similar gas field projects when the companies are awarded contracts in hope that they will find oil or gas and and we can start extracting it

So Tethyan found the gold and copper reserves thousands of meters down the earth… it was valued over 60 billion dollars at that time… (should be worth a lot more in 2021) … so the Government started drooling and potentially finding excuses to come out of the contract… we saw the consequences of it

There are very few companies in the world who have the technology to extract gold at this depth so Tethyan is one of the most renowned one… original contract was also 50-50 basis with the the government earning 25% shares from extraction and another 25% from taxes making it effectively 50-50 so I am not sure if the new agreement is the rephrasing of the old agreement or tethyan is actually willing to give 25% share from their pocket especially when the have won the case in the court and can potentially earn billions of dollars for free in penalty

The concern is if Pakistan is to pay the 6Billion $ then the company looses on all that it has worked for and with the valuation of the mine at worst being 250billion, leave everything aside it will still be able to generate a good 50 billion (125 billion minus lets say at max 75 billion costs) even at the least. secondly it will add to the portfolio of the company that in itself is worth a lot. So yes they also have a lot to loose and they will agree to the terms for their own profit

 

[mikkix]

This is Balochistan money and resources. Damn islamabad and pindi will get all the loot money.

 

[Menace2Society]

This is Balochistan money and resources. Damn islamabad and pindi will get all the loot money.

Its Pakistan's money. Only 12 million in Baluchistan, they will be looked after.

 

[Hyde]

This is Balochistan money and resources. Damn islamabad and pindi will get all the loot money.

In the original contract, as far as I remember… it was divided 50-50 between Federal and Baluchistan Government

Balochistan will get the royalty while Federal will be responsible for finances and Tethyan will bring the technology