Pakistan’s Tycoons Seek to Take Over Disputed Barrick Mine

[ps3linux]

Pakistan’s Tycoons Seek to Take Over Disputed Barrick Mine

Barrick venture awarded $5.8b in damages from Pakistan in July
Consortium met Balochistan govt officials, people familiar sayBy Faseeh Mangi
(Bloomberg) -- Pakistan’s top business tycoons have offered to take over a disputed copper and gold deposit that was once explored by Barrick Gold Corp. and Antofagasta Plc, according to people familiar with the matter.
Officials at the provincial Balochistan government are said to have met with a consortium of four business groups including tycoons Arif Habib and Muhammad Ali Tabba who are willing to invest about $1 billion of their own cash in the project, the people said, asking not to be named because the discussions are private. The consortium is willing to go through a bidding process to take over the project, the people said. Pakistan’s provincial government spokesman didn’t respond to requests for comment.
An international tribunal run by the World Bank in July ordered Pakistan to pay $5.8 billion in damages to Barrick Gold and Antofagasta after the country denied them a license to develop the Reko Diq mine in 2011. Collecting the funds though may be a challenge, given Pakistan’s fragile economic state. The damages almost match the International Monetary Fund’s $6 billion bailout for Pakistan earlier this year to help the South Asian nation avert an economic crisis.
The provincial chief minister has expressed a preference for Pakistani companies to take over the mine, the Dawn newspaper reported earlier this month. The business groups that showed interest in the mining project are: Yunus Brothers Group that owns Lucky Cement Ltd., Arif Habib Group, Fatima Group and the owners of Liberty Power Tech Ltd., the people said. The four are being led by Shamsuddin Shaikh, who spearheaded a group of companies to mine coal from Pakistan’s Thar desert for the first time.
Reko Diq is one of the largest undeveloped copper and gold deposits in the world, capable of producing 200,000 tons of copper and 250,000 ounces of gold a year for more than half a century, according to a feasibility study before the dispute. The capital investment at the time would have exceeded $3 billion.
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End of report
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This was send to me by a credible friend, but I wanted to confirm as my own Bloomberg terminal is in my home laptop, unfortunately damn thing is not working today. I did pay the annual Rs.42K subscription back in July.

Just to put things in perspective Sheikh sb told me this thing about 6 months ago during my visit to Karachi, but I didnt 100% believed, till I met Najam who too told me the same still I am not absolutely sure, called someone else while on my way back he confirms the news is true (if someone has bloomberg terminal please confirm, as soon as I could log on will do so myself), not only that Barrick want to renegotiate the deal big time, apparently Karkey threat has worked, but let us see who is the final winner of the deal.

@The Eagle , @Mangus Ortus Novem @Signalian @Verve , @graphican , @syed1 , @Shane , @Dubious , @Sine Nomine

 

[Dark-Destroyer]

That would be great news

 

[Sine Nomine]

Reuters also reported a couple or so months back that PakArmy was seriously considering to go into mining of PakNaturalWealth.

@Oscar your comments Sir,

Pakistan’s Tycoons Seek to Take Over Disputed Barrick Mine

Barrick venture awarded $5.8b in damages from Pakistan in July
Consortium met Balochistan govt officials, people familiar sayBy Faseeh Mangi
(Bloomberg) -- Pakistan’s top business tycoons have offered to take over a disputed copper and gold deposit that was once explored by Barrick Gold Corp. and Antofagasta Plc, according to people familiar with the matter.
Officials at the provincial Balochistan government are said to have met with a consortium of four business groups including tycoons Arif Habib and Muhammad Ali Tabba who are willing to invest about $1 billion of their own cash in the project, the people said, asking not to be named because the discussions are private. The consortium is willing to go through a bidding process to take over the project, the people said. Pakistan’s provincial government spokesman didn’t respond to requests for comment.
An international tribunal run by the World Bank in July ordered Pakistan to pay $5.8 billion in damages to Barrick Gold and Antofagasta after the country denied them a license to develop the Reko Diq mine in 2011. Collecting the funds though may be a challenge, given Pakistan’s fragile economic state. The damages almost match the International Monetary Fund’s $6 billion bailout for Pakistan earlier this year to help the South Asian nation avert an economic crisis.
The provincial chief minister has expressed a preference for Pakistani companies to take over the mine, the Dawn newspaper reported earlier this month. The business groups that showed interest in the mining project are: Yunus Brothers Group that owns Lucky Cement Ltd., Arif Habib Group, Fatima Group and the owners of Liberty Power Tech Ltd., the people said. The four are being led by Shamsuddin Shaikh, who spearheaded a group of companies to mine coal from Pakistan’s Thar desert for the first time.
Reko Diq is one of the largest undeveloped copper and gold deposits in the world, capable of producing 200,000 tons of copper and 250,000 ounces of gold a year for more than half a century, according to a feasibility study before the dispute. The capital investment at the time would have exceeded $3 billion.

This was send to me by a credible friend, but I wanted to confirm as my own Bloomberg terminal is in my home laptop, unfortunately damn thing is not working today. I did pay the annual Rs.42K subscription back in July.

Just to put things in perspective Sheikh sb told me this thing about 6 months ago during my visit to Karachi, but I didnt 100% believed, till I met Najam who too told me the same still I am not absolutely sure, called someone else while on my way back he confirms the news is true (if someone has bloomberg terminal please confirm, as soon as I could log on will do so myself), not only that Barrick want to renegotiate the deal big time, apparently Karkey threat has worked, but let us see who is the final winner of the deal.

@The Eagle , @Mangus Ortus Novem @Signalian @Verve , @graphican , @syed1 , @Shane , @Dubious , @Sine Nomine

It's a good news and a right step in positive direction.
On top of that,at last business community is getting ready for things other than real estate and textile.
P.S:-I am more in favour of a revised deal which requires having a reputed Pakistani firm as partner.

 

[The Eagle]

@ps3linux thanks for the tag.

karkey episode is totally different ball game that widely came into our favour... thanks to the institutes not so loved by many pseudo liberals & corrupt political lot for the facts as such. A wise man once said that instead of falling to Barrick Gold and Antofagasta for settlement and handing over the mines, we need to arrange & come up with a counter solution in regard to Reko Diq in a way of competition whereby other interested parties willing to help us settle this in lieu of profit for them in future. By such arrangement, I wish may come true as it may be working behind closed doors; we are going to reap more benefits as compare to Barrick Gold and Antofagasta influence. It will be a great news if local business tycoons come up to this whereby Pakistan will be at-least free from foreign blackmailing.

May be these are the reasons as why Barrick Gold and Antofagasta suddenly willing to work on some flexible settlement so that the contract may remain with them. This competition & revised contract is surely working, apparently.

 

[Kabira]

Its probably for the best if these tycons can arrange money. Rekodiq anual production is likely more then estimated by TCC.

Processing plants needs to be build in Pakistan and strict control on what is being extracted.

 

[Sabretooth]

Processing plants needs to be built in Pakistan and strict control on what is being extracted.

That should indeed be the key concern.

 

[Yaseen1]

I think proper regulation is needed for this otherwise it will become other pink himalayan salt for us

 

[Shane]

Pakistan’s Tycoons Seek to Take Over Disputed Barrick Mine

Barrick venture awarded $5.8b in damages from Pakistan in July
Consortium met Balochistan govt officials, people familiar sayBy Faseeh Mangi
(Bloomberg) -- Pakistan’s top business tycoons have offered to take over a disputed copper and gold deposit that was once explored by Barrick Gold Corp. and Antofagasta Plc, according to people familiar with the matter.
Officials at the provincial Balochistan government are said to have met with a consortium of four business groups including tycoons Arif Habib and Muhammad Ali Tabba who are willing to invest about $1 billion of their own cash in the project, the people said, asking not to be named because the discussions are private. The consortium is willing to go through a bidding process to take over the project, the people said. Pakistan’s provincial government spokesman didn’t respond to requests for comment.
An international tribunal run by the World Bank in July ordered Pakistan to pay $5.8 billion in damages to Barrick Gold and Antofagasta after the country denied them a license to develop the Reko Diq mine in 2011. Collecting the funds though may be a challenge, given Pakistan’s fragile economic state. The damages almost match the International Monetary Fund’s $6 billion bailout for Pakistan earlier this year to help the South Asian nation avert an economic crisis.
The provincial chief minister has expressed a preference for Pakistani companies to take over the mine, the Dawn newspaper reported earlier this month. The business groups that showed interest in the mining project are: Yunus Brothers Group that owns Lucky Cement Ltd., Arif Habib Group, Fatima Group and the owners of Liberty Power Tech Ltd., the people said. The four are being led by Shamsuddin Shaikh, who spearheaded a group of companies to mine coal from Pakistan’s Thar desert for the first time.
Reko Diq is one of the largest undeveloped copper and gold deposits in the world, capable of producing 200,000 tons of copper and 250,000 ounces of gold a year for more than half a century, according to a feasibility study before the dispute. The capital investment at the time would have exceeded $3 billion.
_______________________________________________________________________
End of report
_______________________________________________________________________

This was send to me by a credible friend, but I wanted to confirm as my own Bloomberg terminal is in my home laptop, unfortunately damn thing is not working today. I did pay the annual Rs.42K subscription back in July.

Just to put things in perspective Sheikh sb told me this thing about 6 months ago during my visit to Karachi, but I didnt 100% believed, till I met Najam who too told me the same still I am not absolutely sure, called someone else while on my way back he confirms the news is true (if someone has bloomberg terminal please confirm, as soon as I could log on will do so myself), not only that Barrick want to renegotiate the deal big time, apparently Karkey threat has worked, but let us see who is the final winner of the deal.

@The Eagle , @Mangus Ortus Novem @Signalian @Verve , @graphican , @syed1 , @Shane , @Dubious , @Sine Nomine

That is indeed a great news in these troubled times.

If Pakistan is able to tap into its natural resources then it would expedite and help our financial recovery like never before due to an outstanding improvement in forecast of economic development in years to come.

This development will take some time to start to come to fruition but just the beneficial improvement in forecast will go a great deal forward in attracting investment in not just the allied fields but overall improvement in investor confidence towards a potentially lucrative economy looking to built itself from scratch, the best time for investors to jump in for the long run.

Pakistan Zindabad.

 

[ps3linux]

@ps3linux thanks!

• Reuters also reported a couple or so months back that PakArmy was seriously considering to go into mining of PakNaturalWealth. I hope they do.. according to the formula I have stated a few times already.

• What's the beat on refining? We need to create employment for Balochs as well... we can't just export copper ore... we need to refine and do value-addition here in Balochistan.... SEZs for this purpose.

• Also, rare earth metals that Pak has is bigger than gold... we need to build refineries in Pakistan. It is Must!!!

• Link the Afghan rare earth to our refineries... you know what that means for Pakistan's Economy?

Point 1 yes they are serious about it, successive corrupt politicians have put Armed forces in a very bad position, worst of them was munshi, poor economic conditions means no money for defense procurement and you know what that means.

Point 2 and 3 politically wont be right, at this point in time at small scale yes but not large scale.

4 absolutely no, can be disastrous for us.

@ps3linux thanks for the tag.

karkey episode is totally different ball game that widely came into our favour... thanks to the institutes not so loved by many pseudo liberals & corrupt political lot for the facts as such. A wise man once said that instead of falling to Barrick Gold and Antofagasta for settlement and handing over the mines, we need to arrange & come up with a counter solution in regard to Reko Diq in a way of competition whereby other interested parties willing to help us settle this in lieu of profit for them in future. By such arrangement, I wish may come true as it may be working behind closed doors; we are going to reap more benefits as compare to Barrick Gold and Antofagasta influence. It will be a great news if local business tycoons come up to this whereby Pakistan will be at-least free from foreign blackmailing.

May be these are the reasons as why Barrick Gold and Antofagasta suddenly willing to work on some flexible settlement so that the contract may remain with them. This competition & revised contract is surely working, apparently.

Yaar liberals fascists have their problems, I dont worry about them. In case of karkey our friends showed the proof and that how karkey is now pleading us to back off, even erdogan mentioned the same. It is the same with Barrick there are solid proof of transactions.

Of late learning from karkey just a few words in right ears have made Barrick very flexible.

Its probably for the best if these tycons can arrange money. Rekodiq anual production is likely more then estimated by TCC.

Processing plants needs to be build in Pakistan and strict control on what is being extracted.

You are absolutely correct sir, my info says at-least twice of what they reported.

Second part on a small scale yes, but not on a large scale, political, strategic reasons.

@Oscar your comments Sir,


It's a good news and a right step in positive direction.
On top of that,at last business community is getting ready for things other than real estate and textile.
P.S:-I am more in favour of a revised deal which requires having a reputed Pakistani firm as partner.

Bhai in any case Pakistan will get a better deal.

 

[Sine Nomine]

Bhai in any case Pakistan will get a better deal.

Let's see.

 

[Samlee]

Engro Should Take Over

 

[ps3linux]

That is indeed a great news in these troubled times.

If Pakistan is able to tap into its natural resources then it would expedite and help our financial recovery like never before due to an outstanding improvement in forecast of economic development in years to come.

This development will take some time to start to come to fruition but just the beneficial improvement in forecast will go a great deal forward in attracting investment in not just the allied fields but overall improvement in investor confidence towards a potentially lucrative economy looking to built itself from scratch, the best time for investors to jump in for the long run.

Pakistan Zindabad.

Inshallah, there are few other very good news but we have to be very cautious we have enemies all around us, three borders are insecure, economy on oxygen, and the bigger problem are the enemies within.

Caution and patience my brother.

 

[Dark-Destroyer]

Inshallah, there are few other very good news but we have to be very cautious we have enemies all around us, three borders are insecure, economy on oxygen, and the bigger problem are the enemies within.

Caution and patience my brother.

Hopefully their will be news in money recovery from these scums too

 

[VCheng]

Inshallah, there are few other very good news but we have to be very cautious we have enemies all around us, three borders are insecure, economy on oxygen, and the bigger problem are the enemies within.

Caution and patience my brother.

InshaAllah good times will be here soon. Some day.

 

[The Accountant]

Pakistan’s Tycoons Seek to Take Over Disputed Barrick Mine

Barrick venture awarded $5.8b in damages from Pakistan in July
Consortium met Balochistan govt officials, people familiar sayBy Faseeh Mangi
(Bloomberg) -- Pakistan’s top business tycoons have offered to take over a disputed copper and gold deposit that was once explored by Barrick Gold Corp. and Antofagasta Plc, according to people familiar with the matter.
Officials at the provincial Balochistan government are said to have met with a consortium of four business groups including tycoons Arif Habib and Muhammad Ali Tabba who are willing to invest about $1 billion of their own cash in the project, the people said, asking not to be named because the discussions are private. The consortium is willing to go through a bidding process to take over the project, the people said. Pakistan’s provincial government spokesman didn’t respond to requests for comment.
An international tribunal run by the World Bank in July ordered Pakistan to pay $5.8 billion in damages to Barrick Gold and Antofagasta after the country denied them a license to develop the Reko Diq mine in 2011. Collecting the funds though may be a challenge, given Pakistan’s fragile economic state. The damages almost match the International Monetary Fund’s $6 billion bailout for Pakistan earlier this year to help the South Asian nation avert an economic crisis.
The provincial chief minister has expressed a preference for Pakistani companies to take over the mine, the Dawn newspaper reported earlier this month. The business groups that showed interest in the mining project are: Yunus Brothers Group that owns Lucky Cement Ltd., Arif Habib Group, Fatima Group and the owners of Liberty Power Tech Ltd., the people said. The four are being led by Shamsuddin Shaikh, who spearheaded a group of companies to mine coal from Pakistan’s Thar desert for the first time.
Reko Diq is one of the largest undeveloped copper and gold deposits in the world, capable of producing 200,000 tons of copper and 250,000 ounces of gold a year for more than half a century, according to a feasibility study before the dispute. The capital investment at the time would have exceeded $3 billion.
_______________________________________________________________________
End of report
_______________________________________________________________________

This was send to me by a credible friend, but I wanted to confirm as my own Bloomberg terminal is in my home laptop, unfortunately damn thing is not working today. I did pay the annual Rs.42K subscription back in July.

Just to put things in perspective Sheikh sb told me this thing about 6 months ago during my visit to Karachi, but I didnt 100% believed, till I met Najam who too told me the same still I am not absolutely sure, called someone else while on my way back he confirms the news is true (if someone has bloomberg terminal please confirm, as soon as I could log on will do so myself), not only that Barrick want to renegotiate the deal big time, apparently Karkey threat has worked, but let us see who is the final winner of the deal.

@The Eagle , @Mangus Ortus Novem @Signalian @Verve , @graphican , @syed1 , @Shane , @Dubious , @Sine Nomine

As per my knowledge the offer was made and the consortium did some initial assessment but then backed later on as the capital investment and technical expertise required were not available and returns were too slow from just minning operations ... for some real returns refineries was also required which means further capital expenditure hence they backed out.

In the latest development GoP has reached back Barrick to re negotiate the contract ... however all of these rumours till to date ... nothing signed...