Dread Robert
MPA (400+ posts)
Hey Short Term Memory Loss Nation :
$260 Billion Mining Scam in Progress
Shaheen Sehbai reports a scam which could be labelled at mother of all corruption scams related to the Gold and Copper mines in Pakistan, for which contracts are being discussed behind closed doors. He reported that similar contracts were awarded by General Musharraf and now being replicated on much larger scale by the current Political Government and Bureaucrats.
Quietly, and below the media radar, some 20 top corporate bosses and lobbyists of two of the worlds largest gold mining groups have been meeting President Asif Zardari, Prime Minister Gilani, Governor State Bank and others in Islamabad throughout last week, pressing them to quickly hand over one of the worlds biggest gold and copper treasures found in Balochistan at Reko Diq, worth over $260 billion, to their companies, and for peanuts.
Before these highly enticing visits of the mining tycoons to clinch the deals, which followed intense behind-the-scene negotiations and bargaining through middle men, some highly bizarre developments have been taking place, leaving experts and the rest of the mining world stunned, amazed and confused.
These companies want that the mining licences should be issued by Pakistan immediately after their exploration licences expire soon. But there are legal hitches and pressure is now being put through the backdoor to get the target.
In recent years, so many games have been played to keep Pakistans share in the enormous treasure to a bare minimum, thanks to some greedy politicians and bureaucrats who sold their countrys natural wealth.
A deep study of numerous documents, statements of major players, stakeholders and competitors, interviews with key Pakistani officials, including Chief Minister of Balochistan Nawab Aslam Raisani, the picture that emerges is so murky and mind boggling that any ordinary soul just cannot fathom what is going on. Only a thorough and detailed judicial probe can untangle this mystery.
There is a plethora of documents, which prove that almost everybody involved is trying to deceive everybody else, the real picture is never presented, misleading statements and even contradictory claims have been made in the media, the issue has been kept confused as the real mega deal is maturing fast behind closed doors.
http://pkpolitics.com/2010/11/03/260-billion-mining-scam-in-progress/
Save Reko Diq
November 12, 2010
The Reko Diq copper and gold project in Chagai, Balochistan seems to be clouded in mystery.
It appears that a conspiracy is being hatched to rob the people of Balochistan of their mineral wealth.
The Tethyan Copper Co.
Ltd (TCC) a joint venture between Canadas Barrick Gold and Chiles Antofagasta Minerals were granted exploration mining rights with 75% stakes, while the Balochistan government had only 25 percent share in the project.
There are contradictions in Reko Diqs copper and gold reserves/value, though unconfirmed estimates put the figure around 4 billion tons worth 260 billion US Dollars making it the worlds largest copper/gold deposits.
Reports of secret meetings between the TCC and government high ups indicate that Reko Diq may be heading towards perhaps the biggest scam in the countrys history.
It appears that political elite both at the Centre and the province are trying to manipulate the award of mining contract to suit their vested interests.
Why is the government keeping details about Reko Diq secret from the nation? To ensure transparency, an independent Commission comprising federal and provincial experts be setup under directives of the Supreme Court to probe all aspects of the agreement with TCC so that the rights and interests of the people of Balochistan are duly protected.
TCCs feasibility report on Reko Diq including facts/figures about the areas gold and copper deposits and their true worth must also be made public.
The Supreme Court saved the Steel Mills from being sold for peanuts and is conducting hearings in the Rental Power projects mega fraud.
It must save Reko Diq from the wolves.
BRIG FAROOQ HAMEED KHAN (RETD), Lahore, November 10.
http://nation.com.pk/letters/12-Nov-2010/Save-Reko-Diq
Another Reko Diq scandal?
By Ikram Sehgal
July 10, 2014
Located in the sparsely populated Chaghi district in northwestern Balochistan and accessible from the Quetta-Zahedan highway, Reko Diq has extreme weather, ranging from searing summers to freezing winters. High wind and sandstorms demobilise local activities and trade. A large low-grade copper porphyry deposit, Reko Diq has mineral resources totalling 5.9 billion tons of ore with an average copper grade of 0.41 per cent and gold grade of 0.22 grammes/ton. The economically mineable portion has been calculated at 2.2 billion tons with an average copper grade of 0.53 per cent and gold grade of 0.30 grammes/ton.
Reko Diqs annual production is estimated at 200,000 tons of copper and 250,000 ounces of gold from 600,000 tons of concentrate. At todays international prices, the profit worked out by Tethyan Copper Company (TCC) is about $1.14 billion for copper and $2.5 billion for gold, totaling $3.64 billion approximately annually. The TCCs calculation of a $200 billion-plus profit over the 55-year life of the mine is disputed, higher estimates ranging up to $450-500 billion.
BHP Billiton initially signed the exploration licence with the Balochistan government in 1993, forming the TCC later in Australia, having 75 per cent and 25 per cent stake respectively. With gold and copper established in substantial quantity, BHP sold its stake, 37.5 per cent each to the Chilean conglomerate, Antofagasta Minerals, and Canadian company Barrick Gold.
Who gave the waiver to BHP Billiton to palm off its 75 per cent share in the TCC, and at what profit, even before a ton of ore was mined? Why were the Chileans and Canadians risking life and limb, as well as their investments, in such a dangerous area? And most mysterious of all, why were they not making the smelting plants in Pakistan, instead of shipping the concentrate abroad?
Malik Riaz Hussain, a renowned land developer, claimed in mid-June 2012 that Arsalan Iftikhar, son of the then chief justice of Pakistan, Iftikhar Chaudhry, had blackmailed him out of $3.63 million over a three-year period. Receipts, housing agreements and even passport and flight details were produced by an associate of Malik Riaz (and Arsalans friend) about Arsalans trips and hotel stays in London and Monte Carlo.
While Arsalan termed the allegations propaganda, his father launched a preemptive judicial strike, taking suo-motu action to initiate an investigation against his own son. Shoaib Suddle uncovered a lot of incriminating evidence against both, Malik Riaz and Arsalan, recommending their prosecution for massive tax evasion. Both having a lot to lose, a compromise seems to have been reached.
Arsalan is not new to controversy reflecting negatively on his father, who was accused of getting him into medical school despite insufficient grades and then getting him rapidly promoted in his first government assignment. Later, controversially appointed vice-chairman of the Balochistan Investment Board, Arsalan immediately honed in on the Reko Diq gold mines, announcing an open global tender. Jan Buledi, official spokesperson for the Balochistan government, said his government was acting on advice from the federal government, trying to reach an out-of-court settlement with the TCC as it would not be able to bear the financial losses in case a financial penalty is inflicted by the International Court of Arbitration.
Revealingly, Buledi added, It will be unfair to prevent the TCC from participating in the bidding for a licence. The legal lacuna was created on January 7, 2013 when a three-member Supreme Court bench, headed by Arsalans father, declared the July 20, 1993 agreement between the Balochistan government and the TCC void. Is it really a coincidence that the former chief justice plans to establish a consultancy office?
Attracting widespread criticism, Arsalan was forced to resign within 12 days into the Reko Diq controversy. Defending Arsalans appointment, a PML-N stalwart, Mushahidullah Khan, touted this as a reward for Iftikhar Chaudhrys many services to the nation. Was this a reward for services rendered to the nation or to the PML-N? Arsalans federally-inspired appointment was Reko Diq-specific. Who else was in on the attempted scam?
Arsalan Iftikhar is desperately trying to divert attention from the scam by attempting Imran Khans character assassination and subsequent disbarment by the Election Commission of Pakistan. Bereft of his feared seat of power, can Arsalans father rely on colleagues in his former power base to aid and abet in his machinations?
Published in The Express Tribune, July 10th, 2014.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
The writer is a defence and security analyst and chairman of the Pathfinder Group as well as director of the East West Institute
http://tribune.com.pk/story/733342/another-reko-diq-scandal/
http://balochistannewsnetwork.blogspot.com/2014/07/another-reko-diq-scandal.html
$260 Billion Mining Scam in Progress
Shaheen Sehbai reports a scam which could be labelled at mother of all corruption scams related to the Gold and Copper mines in Pakistan, for which contracts are being discussed behind closed doors. He reported that similar contracts were awarded by General Musharraf and now being replicated on much larger scale by the current Political Government and Bureaucrats.
Quietly, and below the media radar, some 20 top corporate bosses and lobbyists of two of the worlds largest gold mining groups have been meeting President Asif Zardari, Prime Minister Gilani, Governor State Bank and others in Islamabad throughout last week, pressing them to quickly hand over one of the worlds biggest gold and copper treasures found in Balochistan at Reko Diq, worth over $260 billion, to their companies, and for peanuts.
Before these highly enticing visits of the mining tycoons to clinch the deals, which followed intense behind-the-scene negotiations and bargaining through middle men, some highly bizarre developments have been taking place, leaving experts and the rest of the mining world stunned, amazed and confused.
These companies want that the mining licences should be issued by Pakistan immediately after their exploration licences expire soon. But there are legal hitches and pressure is now being put through the backdoor to get the target.
In recent years, so many games have been played to keep Pakistans share in the enormous treasure to a bare minimum, thanks to some greedy politicians and bureaucrats who sold their countrys natural wealth.
A deep study of numerous documents, statements of major players, stakeholders and competitors, interviews with key Pakistani officials, including Chief Minister of Balochistan Nawab Aslam Raisani, the picture that emerges is so murky and mind boggling that any ordinary soul just cannot fathom what is going on. Only a thorough and detailed judicial probe can untangle this mystery.
There is a plethora of documents, which prove that almost everybody involved is trying to deceive everybody else, the real picture is never presented, misleading statements and even contradictory claims have been made in the media, the issue has been kept confused as the real mega deal is maturing fast behind closed doors.
http://pkpolitics.com/2010/11/03/260-billion-mining-scam-in-progress/
Save Reko Diq
November 12, 2010
The Reko Diq copper and gold project in Chagai, Balochistan seems to be clouded in mystery.
It appears that a conspiracy is being hatched to rob the people of Balochistan of their mineral wealth.
The Tethyan Copper Co.
Ltd (TCC) a joint venture between Canadas Barrick Gold and Chiles Antofagasta Minerals were granted exploration mining rights with 75% stakes, while the Balochistan government had only 25 percent share in the project.
There are contradictions in Reko Diqs copper and gold reserves/value, though unconfirmed estimates put the figure around 4 billion tons worth 260 billion US Dollars making it the worlds largest copper/gold deposits.
Reports of secret meetings between the TCC and government high ups indicate that Reko Diq may be heading towards perhaps the biggest scam in the countrys history.
It appears that political elite both at the Centre and the province are trying to manipulate the award of mining contract to suit their vested interests.
Why is the government keeping details about Reko Diq secret from the nation? To ensure transparency, an independent Commission comprising federal and provincial experts be setup under directives of the Supreme Court to probe all aspects of the agreement with TCC so that the rights and interests of the people of Balochistan are duly protected.
TCCs feasibility report on Reko Diq including facts/figures about the areas gold and copper deposits and their true worth must also be made public.
The Supreme Court saved the Steel Mills from being sold for peanuts and is conducting hearings in the Rental Power projects mega fraud.
It must save Reko Diq from the wolves.
BRIG FAROOQ HAMEED KHAN (RETD), Lahore, November 10.
http://nation.com.pk/letters/12-Nov-2010/Save-Reko-Diq
Another Reko Diq scandal?
By Ikram Sehgal
July 10, 2014
Located in the sparsely populated Chaghi district in northwestern Balochistan and accessible from the Quetta-Zahedan highway, Reko Diq has extreme weather, ranging from searing summers to freezing winters. High wind and sandstorms demobilise local activities and trade. A large low-grade copper porphyry deposit, Reko Diq has mineral resources totalling 5.9 billion tons of ore with an average copper grade of 0.41 per cent and gold grade of 0.22 grammes/ton. The economically mineable portion has been calculated at 2.2 billion tons with an average copper grade of 0.53 per cent and gold grade of 0.30 grammes/ton.
Reko Diqs annual production is estimated at 200,000 tons of copper and 250,000 ounces of gold from 600,000 tons of concentrate. At todays international prices, the profit worked out by Tethyan Copper Company (TCC) is about $1.14 billion for copper and $2.5 billion for gold, totaling $3.64 billion approximately annually. The TCCs calculation of a $200 billion-plus profit over the 55-year life of the mine is disputed, higher estimates ranging up to $450-500 billion.
BHP Billiton initially signed the exploration licence with the Balochistan government in 1993, forming the TCC later in Australia, having 75 per cent and 25 per cent stake respectively. With gold and copper established in substantial quantity, BHP sold its stake, 37.5 per cent each to the Chilean conglomerate, Antofagasta Minerals, and Canadian company Barrick Gold.
Who gave the waiver to BHP Billiton to palm off its 75 per cent share in the TCC, and at what profit, even before a ton of ore was mined? Why were the Chileans and Canadians risking life and limb, as well as their investments, in such a dangerous area? And most mysterious of all, why were they not making the smelting plants in Pakistan, instead of shipping the concentrate abroad?
Malik Riaz Hussain, a renowned land developer, claimed in mid-June 2012 that Arsalan Iftikhar, son of the then chief justice of Pakistan, Iftikhar Chaudhry, had blackmailed him out of $3.63 million over a three-year period. Receipts, housing agreements and even passport and flight details were produced by an associate of Malik Riaz (and Arsalans friend) about Arsalans trips and hotel stays in London and Monte Carlo.
While Arsalan termed the allegations propaganda, his father launched a preemptive judicial strike, taking suo-motu action to initiate an investigation against his own son. Shoaib Suddle uncovered a lot of incriminating evidence against both, Malik Riaz and Arsalan, recommending their prosecution for massive tax evasion. Both having a lot to lose, a compromise seems to have been reached.
Arsalan is not new to controversy reflecting negatively on his father, who was accused of getting him into medical school despite insufficient grades and then getting him rapidly promoted in his first government assignment. Later, controversially appointed vice-chairman of the Balochistan Investment Board, Arsalan immediately honed in on the Reko Diq gold mines, announcing an open global tender. Jan Buledi, official spokesperson for the Balochistan government, said his government was acting on advice from the federal government, trying to reach an out-of-court settlement with the TCC as it would not be able to bear the financial losses in case a financial penalty is inflicted by the International Court of Arbitration.
Revealingly, Buledi added, It will be unfair to prevent the TCC from participating in the bidding for a licence. The legal lacuna was created on January 7, 2013 when a three-member Supreme Court bench, headed by Arsalans father, declared the July 20, 1993 agreement between the Balochistan government and the TCC void. Is it really a coincidence that the former chief justice plans to establish a consultancy office?
Attracting widespread criticism, Arsalan was forced to resign within 12 days into the Reko Diq controversy. Defending Arsalans appointment, a PML-N stalwart, Mushahidullah Khan, touted this as a reward for Iftikhar Chaudhrys many services to the nation. Was this a reward for services rendered to the nation or to the PML-N? Arsalans federally-inspired appointment was Reko Diq-specific. Who else was in on the attempted scam?
Arsalan Iftikhar is desperately trying to divert attention from the scam by attempting Imran Khans character assassination and subsequent disbarment by the Election Commission of Pakistan. Bereft of his feared seat of power, can Arsalans father rely on colleagues in his former power base to aid and abet in his machinations?
Published in The Express Tribune, July 10th, 2014.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
The writer is a defence and security analyst and chairman of the Pathfinder Group as well as director of the East West Institute
http://tribune.com.pk/story/733342/another-reko-diq-scandal/
http://balochistannewsnetwork.blogspot.com/2014/07/another-reko-diq-scandal.html
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