Naseebullah Khan
In 1993, the Balochistan development authority on the behalf of the government of Balochistan signed an agreement with an American company Broken Hills Properties Minerals (BHPM) as a joint venture regarding the exploration of minerals in District Chaghi_an area of 33,47226 hectares or 13,546 km sq. for which licenses were allotted. The agreement was based upon a formula of 75/25 ratio, where 25 pc was the share of the government of Balochistan. Later on, 1000 km sq. was aggregated more. The exploration period was set for 6 years.Former secretary of finance and renowned economist Mr. Mahfooz Ali Khan observes that, as per mother agreement, the company was given the right to transfer its share(s) to its Successors or Assigns, if it so desired. So BHP created a sister company by the name of MINCOR and transferred its share to the new company. MINCOR subsequently transferred its share to an Australian company, TETHYAN Copper Company, Australia. The new company did further exploration and proved the reserves economically viable and in substantial quantity. This success pushed the share price of Tethyan company and these shares skyrocketed in London Stock Exchange. This attracted a consortium dealing in Copper and GOLD, Antofagasta, 2006. This consortium included two companies, one of Chile, the largest Copper producer in the world, and Barrick Gold Corporation of Canada, the number one gold producer of the world, and the consortium jointly offered Thethyan’s shareholders to sell their shares to them in the open market. The shareholders accepted their offer and Antofagasta and Barrick of Gold, Canada, jointly and equally purchased 100% share of TCC. On February 15, 2011, the TCC company applied for a mining license to the government of Balochistan which was rejected. Consequently, the TCC filed a petition in the ICSID and ICC. The ICSID award for damages for its 2011 decision for delaying a mining lease to Tethyan Copper Company Pt limited on 12 July 2019, worth 5.84 billion USD. The unfavourable result arose some questions; 1: From the start, there had to be an agreement, one between the government of Balochistan and the BHPM, second, among the government of Balochistan, the government of Pakistan, and the BHPM. How the agreement was signed by superseding the rules and regulations? 2: During the exploration, the BHPM shared what type of information the 25% cost share of the province was to be provided to the host company after the production. It means a future liability of 300 million US dollars was given by the government of Balochistan. 3: with whom permission and on what basis the landing right was given to the host company? 4: In the presence of land laws, why the arbitration was kept in the ICC and the ICSID. 5: On what basis did the then provincial government relax 13 rules for the host company? History gesticulates that, when the agreement was being signed there was no provincial assembly and the caretaker government was running the affairs along with the then governor who had assumed charge just 10 days before the agreement. Analysts further observe that while compiling the agreement, the P@D and the other responsible departments such as mines and minerals were not taken into confidence.A project which could alter the destiny of the province has become a headache for the province. Will the responsible who mishandled the situation be ever held accountable?
