Tuesday, November 15, 2011

Alaska Permanent Fund--A Model For Balochistan's Mineral Wealth Sharing

The US state of Alaska has a small population of only 680,000 people and vast territory measuring 1.5 million square kilometers. The state is endowed with tremendous mineral wealth--particularly oil and gas. Alaska Permanent Fund was set up in 1976 to ensure that ordinary Alaskans get a share of this natural wealth. Currently the fund has assets of over $38 billion and each Alaskan will receive $1,174.00 in cash from it for 2011.

Pakistan's Balochistan province shares some similarities with the US state of Alaska. It is the largest of Pakistan's four provinces in terms of area (347,190 square kilometers) but the smallest in terms of population (6.6 million). With large reserves of copper, gold and natural gas, it is probably the richest of Pakistan's provinces in terms of its natural resources.



Most of the grievances of the people of Balochistan stem from a sense that they have not benefited from the resources under their land. Powerful tribal chieftains in the province have exploited this sense of deprivation to demand and receive significant funds for themselves while ordinary Balochis have remained among the poorest and most backward in Pakistan.

As Pakistan moves forward with vast new mineral discoveries such as Reko Diq in Balochistan, it's essential that there be a mechanism to equitably share with ordinary Balochis the billions of dollars in revenue expected to flow from these resources.

Balochistan Fund can be modeled on Alaska Permanent Fund. It is a constitutionally established and professionally managed fund which is run by a semi-independent corporation. Shortly after the oil from Alaska's North Slope began flowing to market through the Trans-Alaska Pipeline System, the Permanent Fund was created by an amendment to the constitution of the U.S. state of Alaska to be an investment for at least 25% of proceeds from some minerals [such as oil and gas] sale or royalties.



Similar funds should be established for other provinces as well. For example, energy-rich Sindh has large coal deposits and huge shale gas reserves which are worth at least hundreds of billions of dollars. Revenues from these resources should be shared equitably to benefit ordinary citizen of Sindh province.

Sharing of the wealth with the people in each province will give them a tangible stake in national development. It will help bring and maintain peace and stability necessary to attract badly needed investments for developing Pakistan's vast mineral resources.

Related Links:

Haq's Musings

Pakistan's Vast Shale Gas Reserves

Reko Diq Copper & Gold

Pakistan's Mineral Wealth

Thar Coal Deposits

USGS Minerals Overview For Pakistan

US Dept of Energy Report on Shale Gas

Pakistan's Twin Energy Crises

Pakistan's Electricity Crisis

Pakistan's Gas Pipeline and Distribution Network

Lure of Pakistan's Riches Calls

Israel in Alaska?

27 comments:

Shams said...

With TCC, Baluchistan was being guaranteed $400 million per year in direct payments from TCC. With the government of Pakistan, Baluchistan would get squat. The company that Samar Mubarakmund keeps talking about to replace TCC is nowhere in sight. When it does become a fact, the theft and graft prevalent in Pakistan will turn it into a PIA, Railways, Pakistan Steel Mills, Karachi Shipyard, PNSC - you name it.

There is no use of a Baluchistan fund if the entire income from its mining is given away to the Baloch government. Yes, there will be thefts. But the difference between Baluchistan and Alaska is that in Alaska, all oil is going of to the private oil firms, with very little tax back to the Alaskan government, since oil is refined elsewhere, and the royalties at lease time were federally controlled. They were set very low about 40 years ago, and those rates are still in force.

Amjad said...

Along with millions of others, I would immediately establish domicile in Balochistan (and live in California)! Wink

Riaz Haq said...

Amjad: "I would immediately establish domicile in Balochistan"

Why wait? Why not do it now in Alaska, or the lands of some of the native American tribes where wealth is shared right here in America?

Riaz Haq said...

Some readers have raised questions about the differences between Alaska and Balochistan in terms of the native populations being different from the majority of national population.

No two places are ever exactly alike, but both Alaska and Balochistan have small native populations which constitute a minority in each. Alaska has 15% native population and Balochistan has over a third of its population that are ethnic Baloch.

Almost as many ethnic Baloch people live outside of Balochistan province (in Sindh and Southern Punjab) as in Balochistan, according to Anatol Lieven (Pakistan-A Hard Country)....and they are quite well integrated with the rest of the population in Pakistan.

Asif Zardari, the current president of Pakistan, is an ethnic Baloch, as was former President Farooq Laghari.

Riaz Haq said...

Here's the latest from Dawn on Reko Diq license:

LONDON: Pakistan’s Balochistan province has rejected a mining lease application from Chilean copper producer Antofagasta and Canada’s Barrick Gold, raising questions over the future of their Reko Diq copper-gold project.

The two miners’ joint venture, Tethyan Copper, said last month it had filed a “notice of dispute” with the province over Reko Diq, after Balochistan government officials refused to meet the company’s executives or extend a deadline for a response to objections raised over the lease.

The mining lease application, for an area including the Reko Diq deposit, was submitted in February.

“Tethyan strongly believes that the Reko Diq project can contribute significantly to the development of a modern mining industry in Balochistan and will consider its options for further courses of action,” Antofagasta said in a statement on Wednesday.

Reko Diq – only the second significant project in the mineral-rich region and potentially a source of much needed inward investment for Pakistan – holds an estimated 5.9 billion tonnes of mineral resources, with an average copper grade of 0.41 per cent and an average gold grade of 0.22 grams a tonne.

The joint venture partners spent $200 million in 2006 buying the exploration licence from rival BHP Billiton.

Construction has been projected to cost some $3.3 billion, but that is expected to climb given rising costs faced by the mining industry, particularly in remote locations like Balochistan.


http://www.dawn.com/2011/11/16/pakistan-says-no-to-antofagasta-barrick-gold-mine.html

Mike said...

Really a neat idea.

It will be nice if this dividend goes back to the people of Balochistan in the form of free schools and free colleges. Free food program for schools. If they use children for labor, than compensating the parents for taking them off the labor force. Free health care. More development roads and bridges, provide employment but no free welfare.

It will be good for Balochistan and unified Pakistan.

Imran said...

The problem is if its done right, Balochis will become the most advanced ethnic group in Pakistan.

I am serious, what can we do to make this happen, writing letters to the editors ? start a campaign ? what would it take for someone to take notice...

Riaz Haq said...

Mike,

In the Alaska model, 25% of the state's royalty income from oil and gas goes into the Alaska Permanent Fund, with the rest going to Alaska treasury for spending on education, health care, infrastructure and other programs.

Using the Alaska model, at least 25% of the money will go to the independently managed fund and pay dividends to the people directly, thus keeping it out of the hands of corrupt sardar politicians who control power in Quetta and care little about their people.

Imran,

It's not just Balochistan. Sindh is now emerging as a very energy-rich province with billions of tons of coal, about 40 trillion cubic feet of shale gas, tremendous wind energy potential along the coast line, and offshore oil and gas reserves. Unless this expected wealth is shared equitably with the people of Sindh, there could be a Sindhi nationalist insurgency in the province which already contributes the most in taxes to Islamabad from its ports and industries in Karachi.

Riaz Haq said...

Here's an excerpt of a Huffington Post Op Ed on Baloch insurgents:

According to Peters, one of the most serious issues with the Baloch independence movement is "deeply troubling" infighting. In fact, he is emphatic in his condemnation of such bickering; going so far as to assert: "they are quickly becoming their own worse enemies."

In his view, individual Baloch simply don't understand that their personal feuding undermines the larger movement: "Certain Baloch fail to understand that their only hope in gaining independence is if they put their own egos and vanity aside and work together. This is the cold hard fact. They are already outgunned and outmanned. Pakistan will continue to to exploit their differences until they realize this."

So long as the Baloch continue to engage in "petty infighting," including "savaging each other in emails," (Ralph) Peters is pessimistic they can garner widespread support in the West. In fact, he warns that such infighting could eventually put off even their staunchest supporters.

As a result, he recommends that the Baloch leadership and activists set the example and halt their public bickering: "The Baloch leaders need to stop their severe personal attacks on each other and others. In the military, we say that you don't let an entire attack get bogged down by a single sniper. But, there are individuals out there who are causing divisions and attacking people. They tend to look at the debate as if you don't agree with me completely then you're my enemy. This undermines their cause."

Until these leaders and activists "support the big picture," Peters offers little hope that the broader Baloch nation will be able to "work together, put aside their deep divide, and unify." This troubles Peters as he confides: "At this point, do I believe they have a good chance of achieving independence? No. But, it would be much higher in the future if they just start working together. It's frustrating that the leaders can't unite."

Peters is also bothered by the Baloch tendancy to blame such infighting on covert operations by Pakistan's military and security services: "The region as a whole tends to blame conspiracy theories. But, I have come to believe that you never accept conspiracies when something can be explained by incompetence. There are probably a mix of things going on here. The Pakistani military and intelligence services probably have provocateurs working in Balochistan just like they do in Afghanistan. They live by the old rule of divide and conquer and they are good at that. But, the bigger issue is the Baloch's own egos. That's what needs addressed."


http://www.huffingtonpost.com/eddie-walsh/baloch-pakistan_b_1326421.html

Riaz Haq said...

Here's an Economic Times story on the wealth of Balochistan ministers:

A provincial minister in Pakistan owns a tract of land that equals a small town - 24,338 acres to be precise. Another wears diamond-studded Rolex watches while a lawmaker runs seven mines and owns 300 guns.

Balochistan Chief Minister Nawab Muhammad Aslam Khan Raisani drives a luxury sport utility vehicle Hummer H2 that was gifted to him and a Harley Davidson motorcycle brought to Pakistan after a waiver on customs duty, showed statement of assets and liabilities submitted to the Election Commission for 2010-11.

Besides owning a safety and security firm, he also has a mining company with a capital investment of Rs.106.5 million, the Dawn newspaper reported.

But, he is easily overshadowed by his Minister for Home and Tribal Affairs, Mir Zafar Ullah Khan.

Khan owns a staggering 24,338 acres of land, most of which he has inherited. He has Rs.51 million in two bank accounts.

Building Minister Agha Irfan Karim owns four properties, including a farm house, 150 acres of agricultural land and a house in Quetta.

Karim also two diamond-studded Rolex wrist watches, two more with gold and silver, 10 diamond-studded cufflinks and 200 tola of gold.

Pir Abdul Qadir Algilani, a lawmaker, too has a generous land holding.

He owns 3,200 acres of land and an under-construction farm spread over 400 acres.

That's not all.

Algilani's other properties include two coal mines, three manganese mines, one copper mine and one iron ore mine in his own and his wife's name.


http://economictimes.indiatimes.com/news/news-by-industry/et-cetera/a-pakistani-minister-mir-zafar-owns-almost-a-town/articleshow/12368249.cms

Riaz Haq said...

The districts of Awaran and Khuzdar where the earthquake hit are the center of Baloch insurgency in Pakistan, according to Washington Post :
Thousands of Pakistanis ran into the streets praying for their lives Tuesday as a powerful earthquake rocked a remote area in the southwest, killing at least 39 people and possibly creating a small island off the coast.

The Pakistani military said it was rushing troops and helicopters to Baluchistan province’s Awaran district, where the quake was centered, and the nearby area of Khuzdar. Local officials said they were sending doctors, food and 1,000 tents for people who had nowhere to sleep as strong aftershocks continued to shake the region.
--------
The area where the quake struck is at the center of an insurgency that Baluch separatists have been waging against the Pakistani government for years. The separatists regularly attack Pakistani troops and symbols of the state, such as infrastructure projects.

A Pakistani military official speaking on customary condition of anonymity said security officials were fired on while escorting doctors to Awaran. No one was wounded.

The quake was felt as far as New Delhi, the Indian capital, some 1,200 kilometers (about 740 miles) away, but no damage or injuries were immediately reported there.

The quake also jolted Pakistan’s largest city, Karachi, roughly 250 kilometers (155 miles) from the epicenter. People in the city’s tall office buildings rushed into the streets, and Pakistani television showed lights swaying as the earth shook.

“My table and computer started shaking. I thought I was feeling dizziness but soon realized they were tremors,” Karachi resident Mohammad Taimur said.

In Quetta, the capital of Baluchistan, cellphone vendor Matiullah Khan said he was in his shop with a customer when the cabinet and shelves started to shake.

“I along with customers rushed out to the main street. ... Thousands of people were standing, many in fear and reciting Quranic verses,” he said.

Baluchistan and neighboring Iran are prone to earthquakes. A magnitude-7.8 quake centered just across the border in Iran killed at least 35 people in Pakistan last April.

___

Santana reported from Islamabad. Associated Press writers Zarar Khan and Munir Ahmed in Islamabad, Adil Jawad in Karachi, and Ashok Sharma in New Delhi contributed to this report.


http://www.washingtonpost.com/world/asia_pacific/pakistani-official-magnitude-77-quake-hits-southwestern-pakistan/2013/09/24/3cd6304a-2513-11e3-9372-92606241ae9c_story.html

Riaz Haq said...

NBC News on relief effort after Balochistan quake:

Most of the food and shelter provided to displaced people is being provided by Jamaat ud Dawa - or Party of the Faithful - the fundraising arm of banned militant outfit Lashkar-e-Taiyeba, whose leadership is wanted by the U.S. for sponsoring terror.

Those difficulties were underlined Thursday when rockets were fired at a government helicopter as it passed over Mushke, an area dominated by militants.

The aircraft was carrying the head of the country's National Disaster Management Authority, a Pakistani army general in charge of relief operations and other officials, The Associated Press reported.
The quake was so powerful that it caused an island to emerge off the coast of the port city of Gwadar, in the Arabian Sea....

Tuesday’s magnitude 7.7 quake struck a remote, under-developed area gripped by separatist militants and the region’s lawlessness is hampering army-led relief efforts.

http://worldnews.nbcnews.com/_news/2013/09/26/20702945-militants-fire-rockets-at-relief-helicopter-as-pakistan-quake-death-toll-hits-349?lite

Riaz Haq said...

Balochis 40% of #Balochistan's population. #BLA, #BLF, #BRA, #UBA 3-4K fighters fighting #Pakistan are deeply divided http://shar.es/FdNz1

Riaz Haq said...

A few renegade scions belonging to Bugti, Marri and Mengal houses of sardars, on payroll of foreign powers and stationed abroad, are trying to become the face of Baloch nationalism. This reeks of crass opportunism because these very sardars demanding greater political rights, autonomy and control over their natural resources remain in themselves the main stumbling block to preventing the benefits of progress and the fruits of royalty of the natural resources from trickling to the masses.

The sardari system in Baluchistan was abolished in the early sixties, but successive governments failed to translate it into reality due to entrenched resistance by the Baloch sardars. It is a manifestation of their unbridled power that sardars, blatantly and brazenly, maintain personal militias equipped with modern weapons and challenge the writ of the state with impunity. It is heartrending as to how they can trod upon, most inhumanely, on the fundamental rights of their followers, claiming authority drawn from traditions and custom of the Baloch. It may sound unbelievable but while dispensing justice, they can still order people to walk on fire to prove innocence, grant hand of women as compensation in feuds and levy fines amounting to lakhs on perceived misdemeanor at personal discretion. They, manifestly, are a tyrannical relic of an oppressive past, which needs to accommodate change or become extinct in the process. The British treated Baluchistan markedly different than Punjab or Sindh, whereby their interest here, primarily, was not economic, but rather of a military and geopolitical in nature. They were interested in defining the Western frontiers of their empire, station garrisons to defend these frontiers and find a safe passage through the area in case of military expeditions to Afghanistan. By 1854, the Khan of Kalat had accepted the British suzerainty for an annual salary of Rs50,000. In 1876, the Khan and all his sardars signed a treaty paving the way for the implementation of the sandeman system of administration. This system changed the status of the Khan and the Baloch sardars to that of the paid agents of the British Crown. In return for this cessation of sovereignty, the sardars were provided with privy purses covering all their expenses, family needs, personal staff, body guards, tours, hospitality, maintenance of their residences, marriages and all family ceremonies etc. Under the new system, the sardars were now empowered to organize Levies Corps by recruiting tribal personnel and receiving their pays from the British, exercising the discretion of paying whatever salary they deemed necessary or none at all to their tribal members, if they so wished. As the sardars were the extension of the British authority, the system bestowed unlimited powers concerning their ability to impose whatever revenue they deemed appropriate in their tribal area. Assisted by Levies, paid for by the British, the sardars perfected a system of total submission of their tribal members, causing grave economic exploitation and political degeneration of the Baloch society.

Since the British had no economic interest tied in Baluchistan, they promoted the most repressive form of the jagirdari system to consolidate the authority of sardars. The land was collectively given to a tribe, as a whole in which the sardar established an intricate hierarchy of revenue collection and his own law enforcement apparatus constituting the tumandars, the muqaddams, the naibs and the maliks

https://www.facebook.com/notes/wasim-zaidi/sardars-and-baloch-nationalism/10152369537092296

Riaz Haq said...

Right in the heart of Balochistan, there are islands of excellence in education, service to the community and devotion to nation-building. Unfortunately, they don’t get media attention or national recognition. The commitment of these men and women so devoted to the development of Balochistan needs to be acknowledged. My visits twice to the Balochistan University of Information Technology, Engineering and Management Sciences (BUITEMS), Quetta, over the past two years, reveal a very different Balochistan than the picture we usually get about the standard of higher education or about the institution-builders in our most backward province.

The university is merely 12-year-old. It is amazing to see how this institution has transformed itself into one of the outstanding places for learning in the country. The university, first housed in an abandoned textile mill on the outskirts of the city, has re-engineered and converted the buildings into an architectural marvel. Words cannot explain this change that houses some of the best facilities, laboratories, classrooms, auditoriums and sunlit corridors, lobbies and halls. Important as they are, the physical structures tell very little about the human development they facilitate.

Having visited so many of the universities in Pakistan, old and new, BUITEMS makes a lasting impression of positive change taking place in Balochistan. First, it has highly qualified faculty members, mostly with foreign degrees, and opting to serve in their home province. The congenial atmosphere of the university also continues to attract teachers from other provinces. Just to give you an idea, it has 49 PhDs working and 137 more enrolled in some of the best universities abroad. Second, it has 7,523 students from various parts of the province with representation from other provinces and Afghanistan, facilitating provincial and national diversity. Third, more than 33 per cent of the students receive financial assistance from the university. It is refreshing to see that BUITEMS is free of disruptive student politics that have ruined a good number of national universities in Balochistan and other provinces.

It is the vision, commitment and hard work of the faculty and the Vice-Chancellor, Engineer Farooq Ahmad Bazai, who have contributed to the rise of this university that offers hope and opportunity to young men and women in Balochistan to excel. There is more. Starting with the University of Balochistan, the first-ever university to be established in the province in 1972, Balochistan now has six universities in the public sector with a lot of support from the Higher Education Commission for infrastructural development and scholarships for training of faculty in foreign universities. The present Balochistan government of Dr Abdul Malik Baloch has shown far greater commitment and ownership of public education than any government in the history of the province. It now spends about 26 per cent of the budget on education.

The point is that the usual prism and the lenses we often use to look at Balochistan and the country require some dusting and realigning. Fixed views and fixed lenses never help grasp the reality of change anywhere.

http://tribune.com.pk/story/881452/a-world-class-university-in-balochistan/

Riaz Haq said...

Brahumdagh Bugti expected soon to return to #Pakistan after 9 year self-exile to end #Balochistan insurgency. http://tribune.com.pk/story/989330/brahumdagh-bugti-expected-to-end-9-year-exile-soon-reports/ …

a source in the inner circles of Balochistan governement told RFE/RL’s Gandhara website that Bugti is months away from returning to Pakistan, marking an end of his nine-year exile which had followed the killing of his grandfather, Nawab Akbar Khan Bugti, by Pakistani security forces in 2006.

“He has agreed to come [back to Pakistan],” the website quoting an anonymous source said. “We have reached an agreement on 90 per cent of the issues.”

The source, a senior politician within Balochistan’s ruling coalition claimed Bugti indicated his willingness to return in a series of meeting with Balochistan chief minister in Switzerland this summer.

“There were two or three meetings [in July]. He [Bugti] has asked for respect and an end to all cases against him [as a pre-condition for his return],” the source was further quoted as saying.

Earlier in August, Bugti agreed to hold talks with the government on the Balochistan issue, hinting at the possibility of withdrawing demands of separation — provided that was what the people in the province wanted.

“We are ready to stay with Pakistan if our friends, well-wishers, majority of the Baloch people and political allies want the same,” the self-exiled separatist leader told the BBC Urdu in an interview in Switzerland.

This was the first time that the BRA leader, who is the grandson of former Balochistan governor and chief minister Nawab Akbar Bugti, voiced his support for talks with the government.

Riaz Haq said...

Why is organized illegal #mining flourishing in #Pakistan?

http://www.mining-technology.com/features/featurewhy-is-illegal-mining-flourishing-in-pakistan-5731542/

Many challenges face Pakistan as it strives to stamp out illegal mining and attract investment to take full advantage of its rich variety of resources. As the eight-year ban on excavation in the Northern Province of Khyber Pakhtunkhwa ends, Molly Lempriere takes a look at the challenges in this region and the country as whole, and asks what the government can do to unlock the next step in Pakistan’s mineral journey.

Mining is a crucial industry in Pakistan, but one which faces a host of challenges. Regional and national governments are working to improve the regulatory and operational landscape for miners and mining companies, but with regional instability and illegal mining pervasive, is there still a long way to go?

Pakistan is a resource-wealthy country with large quantities of coal, iron and copper, as well as gold and gemstones. Currently, Pakistan hosts the world’s second-largest coal deposits with as much as 185 billion tonnes, as well as being the third-largest producer of iron ore pigments.

Pakistan has only begun to scratch the surface of its resource potential. The last few years have seen large mineral deposits being unearthed, including an iron ore body in the central province of Punjab. This discovery, announced in 2015, reportedly contains an estimated 500 million tonnes (Mt) of iron ore and is owned by the Metallurgical Corporation of China.

However, a history of corruption and illegal mining has deterred international investment in the mining industry. Globally, mining has a long history of operating in dangerous and underdeveloped areas, but the insecurity of assets in Pakistan continues to deter many companies from investing.

A moratorium on mining excavation in the northern Khyber Pakhtunkhwa province was introduced eight years ago, but this has been repealed by an ordinance in August 2016. The ordinance brings in a series of regulations that the local government claims will increase international investment, but some have reacted with anger. The province, which has been plagued by illegal mining, highlights the widespread problems affecting the country as a whole.

Illegal competition
Illegal mining has flourished in Khyber Pakhtunkhwa since the ban; as legitimate mining efforts have ceased, mafia groups and other gangs have taken over. GlobalData head of research and analysis for mining Clifford Smee says the mafia’s presence is unsurprising, as “mining needs a somewhat sophisticated organisation to successfully operate”.

“Illegal mining is always an issue in developing countries,” Smee adds. “We see large illegal mining in major producing countries such as Indonesia (100Mt of coal is illegally mined), and we have seen issues with illegal mining in neighbouring India.

“Typically, illegal mining flourishes in periods of high prices, such as the high coal and iron ore prices which drove illegal mining of these commodities in South East Asia during the Chinese mining super cycle,” Smee continues.

"Khyber Pakhtunkhwa is an area rich in gems and semiprecious stones, with Swat alone boasting 70 million carats of emerald reserves."
Khyber Pakhtunkhwa is an area rich in gems and semiprecious stones, with Swat alone boasting 70 million carats of emerald reserves. The Mardan district has nine million carats of pink topaz reserves while Kohistan has ten million carats of peridot, all of which are currently being illegally traded by organised gangs.


Riaz Haq said...

#Pakistan PM to open 363 Km Kachhi canal to irrigate 72,000 acres farmland in Dear Bugti, #Balochistan. #agriculture

http://nation.com.pk/multan/14-Sep-2017/pm-inaugurates-kachhi-canal-project-in-dera-bugti-today


Quetta - Prime Minister Shahid Khaqan Abbasi is scheduled to arrive in Balochistan today (Thursday) for the inauguration of Kachhi Canal Project upon its completion in Dera Bugti.

As per reports, Premier Abbasi will arrive in Dera Bugti to formally inaugurate Kachhi Canal Project on Thursday for which all preparations have been finalised and he will also address a gathering of Pakistan Muslim League-Nawaz (PML-N) workers and supporters in Sui where a large number of tribal elites are expected to join the PML-N fold.

Tight security arrangements have been made for prime minister’s scheduled visit to Balochistan.

It merits mentioning here that the Kachhi Canal Project was kicked off in 2002 but delay in its completion made the cost of the project go high and the project kept on moving on a snail’s pace. After 15 years, its preliminary phase has been completed, while in the second phase the canal will irrigate more areas.

The 363-km long Kachhi Canal Project is located in Punjab whose 281 km part is in Punjab and 80 km falls in Balochistan. The canal originates from Taunsa Barrage at Indus River. The Kachhi Canal will provide sustainable irrigation water supply to 72,000 acres of agricultural land thus bringing green revolution in Balochistan.

The project embraces significant position in Balochistan water infrastructure and agriculture sector which will fuel financial progress in the province.

Balochistan Governor Muhammad Khan Achakzai, Chief Minister Nawab Sanaullah Zehri and other ministers, MPAs and security officials will be present at the inaugural ceremony of Kachhi Canal Project.

Riaz Haq said...

PM to inaugurate Kachhi canal project today

https://www.pakistantoday.com.pk/2017/09/14/pm-to-inaugurate-kachhi-canal-project-today/


DERA BUGTI: Prime Minister Shahid Khaqan Abbasi will be paying a one day visit to Dera Bugti’s Sui area to inaugurate the Kachhi canal project on Thursday. He will also be addressing the gathering at the inauguration ceremony.

The pm will be accompanied by Chief Minister Balochistan Nawab Sanaullah Zehri, Home Minister Balochistan Mir Sarfaraz Bugti and other leaders who are also expected to address the gathering.

In consideration of the occasion, a local holiday has been declared in the district of Dera Bugti today.

Kachhi canal project is of strategic importance for the development of irrigated agriculture in Balochistan. The total estimated cost of the project is around Rs80 billion. The 363km long main canal (of which 351km is lined canal) stretches from Taunsa Barrage in Muzaffargarh to Dera Bugti district.

Riaz Haq said...

THE EXPRESS TRIBUNE > BUSINESS
Balochistan can earn Pakistan up to $1 billion a year

https://tribune.com.pk/story/1543268/2-balochistan-can-earn-pakistan-1-billion-year/

Balochistan alone has the potential to earn Pakistan up to $1 billion a year from fruit and vegetable exports, according to initial findings of All Pakistan Fruit and Vegetable Exporters, Importers & Merchants Association (PFVA).

But this will happen if international good practices are adopted, added the representative organisation of fresh food exporters that has recently completed a consultative process with stakeholders in Balochistan to develop a road map for the sector.

“The PFVA’s vision would provide long-lasting solutions of problems like food security,” a press release quoted former PFVA chairman Waheed Ahmed as saying.

A PFVA delegation recently met Balochistan Governor Mohammad Khan Achakzai, growers and trade organisations and briefed them about the vision of the association to develop a national policy of horticulture.

The PFVA is gathering support throughout the country for its upcoming “National conference on Horticulture” which will be organised in February 2018.

The association briefed the governor and held consultative meetings at the Quetta Chamber of Commerce to increase the participation of farmers and other stakeholders in highlighting issues of the sector.

The current share of export volume of fruits and vegetables from the province is $45 million, which can be enhanced to $1 billion by establishing Research and Development facilities, Ahmed said.

Pakistan suffers due to low volume of exports overall, aggravating economic issues like a widening trade and current account deficit. Experts have time and again highlighted the need to increase exports and tap sectors other than textile to address economic issues.


The PFVA says that the establishment of grading, processing and packing plants as common facilities in various parts of Balochistan is imminent to achieve this objective. The governor assured to render full support and assistance is setting up common facilities centres in Balochistan, the release added.

Pakistan exported $641 million worth of horticulture products in fiscal year 2016. However, PFVA officials say the country can touch a volume of up to $7 billion within a decade if the federal and provincial governments frame friendlier policies.

Riaz Haq said...

Hoping to extend maritime reach, #China is lavishing vast amounts of aid on a small #Pakistani fishing town of #Gwadar to win over locals and build a commercial deep-water port that #America and #India suspect may also one day serve Chinese navy. #CPEC

https://www.reuters.com/article/us-china-silkroad-pakistan-insight/hoping-to-extend-maritime-reach-china-lavishes-aid-on-pakistan-town-idUSKBN1EB00J

There are early signs China’s efforts to win hearts and minds are beginning to bear fruit in Gwadar.

“Baluchistan is backward and underdeveloped, but we are seeing development after China’s arrival,” said Salam Dashti, 45, a grocer whose two children attend the new Chinese-built primary school.

But there are major pitfalls ahead.

Tens of thousands of people living by the port will have to be relocated.

For now, they live in cramped single-story concrete houses corroded by sea water on a narrow peninsula, where barefoot fishermen offload their catch on newly-paved roads strewn with rubbish. Many of the fishermen say they fear they’ll lose their livelihoods once the port starts operating.

Indigenous residents’ fear of becoming a minority is inevitable with Gwadar’s population expected to jump more than 15-fold in coming decades. On the edge of town, mansions erected by land speculators are popping up alongside the sand dunes.

Analysts say China is aware that previous efforts to develop Gwadar port failed partly due to the security threat posed by Baloch separatists, so Beijing is trying to counter the insurgents’ narrative that China wants to exploit Baluchistan.

“That weighs heavily on the minds of the Chinese,” Parks added. “It’s almost certainly true that they are trying to safeguard their investments by getting more local buy-in.”

Chinese officials, meanwhile, are promoting the infrastructure development they are funding.

“Every day you can see new changes. It shows the sincerity of Chinese for development of Gwadar,” Fijian Zhao, the deputy chief of mission at the Chinese embassy in Islamabad, tweeted last month.

NAVAL FACILITY
For its investment in Gwadar, China will receive 91 percent of revenues until the port is returned to Pakistan in four decades’ time. The operator, China Overseas Ports Holding Company, will also be exempt from major taxes for more than 20 years.

Pakistan’s maritime affairs minister, Hasil Bizenjo, said the arrival of the Chinese in the region contrasted with the experience of the past two centuries, when Russia and Britain, and later the United States and the Soviet Union, vied for control of the warm water ports of the Persian Gulf.

“The Chinese have come very smoothly, they have reached the warm waters,” Bizenjo told Reuters. “What they are investing is less than a peanut for access to warm waters.”

When a U.S. Pentagon report in June suggested Gwadar could become a military base for China, a concern that India has also expressed, Beijing dismissed the idea.

“Talk that China is building a military base in Pakistan is pure guesswork,” said a Chinese Defence Ministry spokesman, Wu Sian.

Bizenjo and other Pakistani officials say Beijing has not asked to use Gwadar for naval purposes.

“This port, they will use it mostly for their commercial interests, but it depends on the next 20 years where the world goes,” Bizenjo said.

Riaz Haq said...

According to details (of the agreement between Pakistan and Barrick Gold), Pakistan and TCC agreed to divide shares with each side getting 50 percent of them. Pertinent to mention, Pakistan had a stake of 25 percent in the previous deal.

https://www.globalvillagespace.com/breakthrough-pakistan-to-get-50-share-in-reko-diq/

Sources claim that Pakistan and TCC will most likely sign the deal in February. If finalized, the deal will avert the threat of imposition of a $10 billion dollar fine on Pakistan.

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Sources revealed to The Express Tribune that the project’s development would result in an investment of approximately $10 billion in Balochistan, including $1 billion which would be invested in social uplift projects such as roads, schools, hospitals, and the creation of technical training institute for mining. The investment is also said to result in the creation of over 8,000 jobs.

“This project shall make Balochistan the largest recipient of foreign direct investment in Pakistan and the Reko Diq project shall be one of the largest copper and gold mining projects in the world”, sources added.

50 per cent of the new project’s shares will be owned by Barrick Gold, while the remaining shares shall be owned by Pakistan, divided equally between the federal government and the provincial government of Balochistan.

The federal government’s shares of 25% shall be divided equally amongst three state-owned entities (SOE), namely Oil & Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Pakistan Limited (GHPL).

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The reconstituted project will be held 50% by Barrick and 50% by Pakistan stakeholders, comprising a 10% free-carried, non-contributing share held by the government of Balochistan, an additional 15% held by a special purpose company owned by the government of Balochistan and 25% owned by other federal state-owned enterprises. A separate agreement provides for Barrick’s partner Antofagasta PLC to be replaced in the project by the Pakistani parties.

https://www.barrick.com/English/news/news-details/2022/barrick-pakistan-and-balochistan-agree-in-principle-to-restart-reko-diq-project/default.aspx

Barrick will be the operator of the project which will be granted a mining lease, exploration licence, surface rights and a mineral agreement stabilizing the fiscal regime applicable to the project for a specified period. The process to finalize and approve definitive agreements, including the stabilization of the fiscal regime pursuant to the mineral agreement, will be fully transparent and involve the federal and provincial governments, as well as the Supreme Court of Pakistan. If the definitive agreements are executed and the conditions to closing are satisfied, the project will be reconstituted including the resolution of the damages originally awarded by the International Centre for the Settlement of Investment Disputes and disputed in the International Chamber of Commerce.

Riaz Haq said...

Barrick Gold strikes final deal with Pakistan for Reko Diq project
Published by Joe Toft, Editorial Assistant
Global Mining Review

https://www.globalminingreview.com/mining/30122022/barrick-gold-strikes-final-deal-with-pakistan-for-reko-diq-project/

Barrick Gold Corporationhas announced that it has completed the reconstitution of the Reko Diq project, having received a favourable opinion from the Supreme Court of Pakistan and the required legislation having been passed into law.
One of the largest undeveloped copper-gold projects in the world, Reko Diq is owned 50% by Barrick, 25% by three federal state-owned enterprises, 15% by the Province of Balochistan on a fully funded basis and 10% by the Province of Balochistan on a free carried basis.

Barrick president and chief executive Mark Bristow said the completion of the legal processes was a key step in progressing the development of Reko Diq into a world-class, long-life mine which would substantially expand the company’s strategically significant copper portfolio and benefit its Pakistani stakeholders for generations to come.

“We are currently updating the project’s 2010 feasibility and 2011 feasibility expansion studies. This should be completed by 2024, with 2028 targeted for first production,” Bristow said.

“With its unique combination of large scale, low strip and good grade, Reko Diq is expected to have a life of at least 40 years. We envisage a truck-and-shovel open cast operation with processing facilities producing a high-quality copper-gold concentrate. We expect it to be constructed in two phases with a combined process capacity of 80 million tpy.

Reko Diq will be a major contributor to Pakistan’s economy which is expected to have a transformative impact on the underdeveloped Balochistan province where, in addition to the economic benefits it will generate, the mine will also create jobs, promote the growth of a regional economy and invest in development programs. The province’s interest in the mine will be fully funded, which means that Balochistan will reap the dividends, royalties and other benefits of its 25% shareholding without having to contribute financially to its construction and operation.

“Reko Diq’s ownership structure is a further manifestation of Barrick’s commitment to partnership with its host countries and communities and to sharing the value our operations create fairly with all our stakeholders,” Bristow said.

“We’re making sure that Balochistan and its people will see these benefits quickly. Starting early next year, Barrick will implement a range of social development programs prioritising the improvement of healthcare, education, vocational training, food security and the provision of potable water. Our investment in these is expected to amount to around US$70 million over the feasibility and construction period. In addition, Reko Diq will advance royalties to the government of Balochistan of up to US$50 million until commercial production starts.”

During peak construction the project is expected to employ 7500 people and once in production it will create around 4000 long-term jobs. As elsewhere in the group, Barrick prioritises the employment of local people and host country nationals.

Bristow said Barrick already had the industry's best gold assets and the addition of Reko Diq would promote its copper portfolio into the world-class league, accelerating the company towards its goal of creating the world's most valued gold and copper mining business.

Riaz Haq said...

Pakistan is sitting on a gold mine


https://english.almayadeen.net/articles/analysis/pakistan-is-sitting-on-a-gold-mine


The Reko Diq mine, renowned for its massive gold and copper deposits, is thought to contain the fifth-largest gold deposit in the world.


Reko Diq is a small desert village in the Balochistan district of Chagai, 70 kilometers northwest of Naukundi and close to Pakistan's border with Iran and Afghanistan. This region is situated within the Tethyan belt, which extends from Turkey and Iran to Pakistan. Reko Diq, which in Balochi means "sandy mountain," is also the name of an extinct volcano.

The Reko Diq mine, renowned for its massive gold and copper deposits, is thought to contain the fifth-largest gold deposit in the world. The mine is in a small desert area in the northeast of Balochistan, near the border with Iran and Afghanistan.

600,000 tons of concentrate produce an estimated 200,000 tons of copper and 250,000 ounces of gold on a yearly basis. The annual profit from the mines is estimated by the TCC to be approximately $1.14 billion for copper and $2.50 billion for gold, totaling $3.64 billion annually. Independent estimates suggest the number is as high as $500 billion, which is significantly higher than the TCC's estimation of $200 billion.

Riaz Haq said...

Barrick Gold Corporation - Reko Diq Mining Company Constitutes Community Development Committee for Locally Driven Development



https://www.barrick.com/English/news/news-details/2023/reko-diq-constitutes-community-development-committee-for-locally-driven-development/default.aspx


NOKKUNDI, BALOCHISTAN – Reko Diq Mining Company (RDMC), a subsidiary of Barrick Gold Corporation, has constituted a 25-member Community Development Committee (CDC) at Nokkundi in the Chagai district. The CDC comprises local stakeholders and community leaders who will guide the company’s social investment plan in the area.

Speaking at the event, Ali Ehsan Rind, the country manager of RDMC said: “In all its operations worldwide, Barrick strives to be a good corporate citizen and a genuine partner of the host communities in locally led development. With the formation of this CDC, representing all the key local stakeholders, I am confident that our work will become a catalyst for the social development of the local communities.”

The meeting was also attended by the district commissioner of Chaghi, the deputy director of mines (Balochistan), tribal elders, local notables and a cross-section of representatives from the district.

The Nokkundi CDC was formulated after an extensive consultative process and engagement with 62 stakeholders. Its mandate includes consultation for consensus on the selection of social investment initiatives to be undertaken by the company.

Community Development Committees
CDCs are our community development partnership model, comprised of community members, elected locally and include a representative from the company to ensure projects chosen align with the five sustainable development focus areas and adhere to our policies including procurement and accountable governance.
The formation of this CDC is a concrete step taken by RDMC to ensure that the business delivers social investment projects of significant and lasting benefit to the local communities among whom it will operate. The management of RDMC values sustainable development and mutual advantage and seeks to build a harmonious partnership amongst the communities in and around the RD project area.

Reko Diq will be a multi-generational mine with a life of at least 40 years. During peak construction the project is expected to employ 7,500 people and once in production it will create 4,000 long-term jobs. Barrick’s policy of prioritizing local employment and suppliers will have a positive impact on the local economy. The company plans to finish the Reko Diq feasibility study update by the end of 2024, with 2028 targeted for first production from the giant copper-gold mine in the country’s Balochistan province. The new Reko Diq agreement ensures that benefits from the project start accruing to the people of Balochistan well before the mine goes

Riaz Haq said...

Reko Diq #Copper Mine in #Pakistan's #Balochistan has potential to be one of world’s biggest suppliers of metal needed for transition to clean #energy. #Canada's Barrick is investing in it. #SaudiArabia's #investment fund has also expressed interest. https://www.ft.com/content/7a1db3cf-a61b-4ef5-b90d-ea98fe530295


“Reko Diq is one of the bigger copper-gold undeveloped projects in the world,” said Mark Bristow, chief executive of Barrick, which aims to start mining in 2028 subject to an ongoing feasibility study. “It’s a very big deal. Any copper mine right now is a big deal.”

The project highlights how the copper shortfall is pushing miners into ever trickier markets in search of supply. Pakistan’s repeated political and economic crises have scared away all but the most determined foreign investors, and local authorities had blocked an earlier attempt involving Barrick to mine Reko Diq.


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Bristow argues that the project, in which Barrick has a 50 per cent stake alongside the Pakistan and Balochistan governments, will bring much-needed development to the region.

“Mining, when it goes into emerging markets, is obsessed with getting its money back,” he said. “We’ve learned that you start paying benefits and dividends early on.”

As countries transition to clean energy sources, copper — whose conductive properties make it crucial to transporting electricity — is only expected to become more important to the global economy.

But with supply from incumbent mines in countries such as Chile and Peru stalling, an estimated $118bn of investment by 2030 is needed to plug a supply gap that will by next decade be equivalent to 35 Reko Diq-sized projects, according to analysts at CRU Group.


Th a record of operating in riskier markets such as Mali and the Democratic Republic of Congo.

While Reko Diq adds “a lot of uncertainty” for Barrick investors, “Barrick is no stranger to frontier jurisdictions”, said Canaccord Genuity analyst Carey MacRury.

Another factor that could help steer the Reko Diq project is the presence of a new investor. Saudi Arabia’s Public Investment Fund and state mining company Ma’aden have expressed interest in a stake. Analysts said the involvement of one of Pakistan’s most important allies would help shield the project from future political U-turns.

If successful, the mine could turn the company into one of the world’s largest copper producers. Diversifying its portfolio into copper is particularly important for gold miners such as Barrick to stay relevant with investors focused on environmental, social and governance issues, since the company’s core product plays no role in the energy transition.

Reko Diq sits along the largely untapped south Asian leg of a rock formation from Europe to south-east Asia that is believed to hold rich copper deposits. Analysts believe there is the potential for more mines.

Ahsan Iqbal, who recently stepped down as Pakistan’s planning minister and worked on the project, argued that Reko Diq would “put Balochistan on the mining map of the world”.

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Reko Diq “is 50 miles from Afghanistan and 40 miles from Iran”, one person involved with the project said. “So it will be a target.”

For support, Barrick has turned to Pakistan’s powerful army, which helps control the country’s politics and helped negotiate last year’s deal to revive the project, according to a person involved.

Pakistan’s army chief also this month attended a local mining conference alongside Bristow. “The military are a steadying hand,” Bristow said. “They are absolutely essential on the security side.”

Yet rights groups have repeatedly accused the army of abuses in Balochistan, including extrajudicial executions, allegations it denies.

Bristow has welcomed the potential Saudi interest in Reko Diq and dismissed hand-wringing over whether he can see through the project.

“When you look at the world, it is more complex than when I started,” he said. “Gone are the days that you can control a mining company from a multistorey, cushy building in the developed world.”

Riaz Haq said...

Gold Billionaire Sawiris Eyes Stake in $7 Billion Reko Diq Mine


https://finance.yahoo.com/news/gold-billionaire-sawiris-eyes-stake-041314342.html

(Bloomberg) -- Egyptian billionaire Naguib Sawiris, who has forged a fortune in telecom and gold, is eyeing an investment in Barrick Gold Corp.’s $7 billion Reko Diq copper-gold project as he looks to expand his business in Pakistan.

Reko Diq, in the Balochistan region that borders Afghanistan and Iran, is one the world’s largest undeveloped copper and gold deposits, capable of producing 200,000 tons of copper and 250,000 ounces of gold a year for more than half a century. The project is jointly owned by Barrick and Pakistan.

Asked whether he was interested in investing, Sawiris, a major investor in gold miners including Endeavour Mining Plc through his La Mancha Resources Inc., said “yes.”

“I have an advantage compared to other investors. I know the country, I have friends here,” Sawiris said in an interview in Islamabad. “We want to be on the Pakistani side, because I have been here for 25 years.”

He did not elaborate on the potential scale of the investment, but added there were few other options, in part due to the lack of geological data: “We tried here to look but unfortunately there is only this one big project.”

Last month, Barrick Chief Executive Officer Mark Bristow said he was seeing newfound “interest” in Reko Diq from multinational mining firms that have to date been hesitant to venture into tricky regions of the world. The mine has also attracted interest from Saudi Arabia, whose presence could serve to stabilize the project in a contentious part of the world.

Pakistan’s state-owned energy exploration companies, which have a stake in the project, said last month they were looking into “potential engagement” with sovereign foreign investors, without giving details.

Sawiris’ Ora Developers is separately working on a luxury housing project, Eighteen, and he earlier set up one of Pakistan’s first mobile phone companies, Mobilink, now owned by Veon Ltd., and the nation’s largest cellular firm by subscriber numbers.

Pakistan’s lengthy, difficult official procedures, an unstable currency and capital restrictions are hurdles for investment, but Sawiris said he remained optimistic.

“If there is concrete in my way, I’ll drill through it and I’ll go,” he said. “I have never let anybody in my life hold me back from what I wanted to achieve.”