Blochistan Crisis - Gold Factor???



  • $1.25bn copper, gold reserves discovered


    $1.25bn copper, gold reserves discovered

    By Khaleeq Kiani

    ISLAMABAD, April 13: Major reserves of copper and gold in Balochistan’s Rekodiq area have been discovered which would contribute about $1.25 billion annually to the national economy, it is learnt.

    “This is a major discovery by all international standards”, a senior government official told Dawn on Wednesday. The president or the prime minister will make a formal announcement after completing legal formalities, he said.

    The Rekodiq mining area has proven estimated reserves of two billion tons of copper and 20 million ounces of gold. According to the current market price, the value of the deposits has been estimated at about $65 billion, which would generate thousands of jobs.

    The size of Pakistan’s national economy (GDP) at present is about $104 billion.

    Balochistan government has 25 per cent stake in the Rekodiq project. Rest of the 75 per cent stakes of the project have now been taken over on 50:50 basis by Antofagasta of Chile and Barrick Gold of Canada.

    “The discovery has ranked Rekodiq among the world’s top seven copper reserves”, said an industry expert requesting not to be named for political reasons associated with ongoing security operation in the province.

    “This is a quantum jump....the mineral resources may contribute to the national economy despite inadequate support this sector gets from the government”, he added.

    The Rekodiq project is estimated to produce 200,000 tons of copper and 400,000 ounces of gold per year, at an estimated value of $1.25 billion at current market prices. The copper and gold are currently traded at about $5,000 per ton and $600 per ounce respectively in the international market.

    The project will, however, require about $1 billion investment to start commercial production by 2010. It has so far consumed about $50 million to prove two billion tons of copper and 20 million ounces of gold.

    The presence of a mineral deposits in the area was identified by the Geological Survey of Pakistan in early 1990s in collaboration with BHP Billiton of Australia.

    Later in 2000, Tethyan Corporation (TCC) of Australia took over the project from BHP and invested $30 million by raising funds through international listing and drilled over 75,000 meters to prove the reserves.

    The TCC has recently been taken over by two of the world’s largest copper and gold mining firms — Antofagasta of Chile and Barrick Gold Corporation of Canada. The market capitalisation of Barrick alone is estimated at over $25 billion. This is the first private sector funded mining venture in Pakistan.

    The chairmen of the two mining majors — Jean Paul Luksic of Antofagasta and Gregory Charles Wilkings of Barrick — also had a meeting with Prime Minister Shaukat Aziz on Tuesday to inform him about their successful take over of TCC at 158 million Australian dollars (about $130 million or Rs8 billion).

    Pakistan is rich in mineral resources waiting to be tapped by both domestic and foreign investors by bringing in latest techniques and state-of-the-art technology in this sector, the prime minister told the two investors. He said the logistics chain would be improved throughout the country to facilitate the movement of cargo. He hoped that Gwadar Deep Sea Port would be a hub for export of mining products from Balochistan.

    http://www.dawn.com/2006/04/14/top8.htm



  • The world's fifth largest reserves of gold and copper were discovered

    in Chaghi area in Pakistan's southwest Balochistan province, local

    newspaper The News reported on Thursday.

    Director General of Provincial Department of Mineralogy Maqbool Ahmed

    said that two multinationals, Canadian and Chilean-firms, which were

    issued licenses 10 years earlier for exploration of gold in the

    Bekodik area, have completed the exploration work and have chalked out

    a project for the extraction of gold and copper.

    In the preliminary stage, the two companies will invest a billion U.S.

    dollars in the project, Ahmed said.

    According to Ahmed, 200,000 tons of copper and 400,000 ounce of gold

    will be produced annually through the said project.

    The Balochistan government will get a share of 25 percent. With the

    start of the project, employment will be provided to 3,000 youth of

    the province.

    According to Ahmed, there are gold reserve in Zhob and Lasbela

    districts of the province and nine multinationals have been issued

    licenses for their exploration.

    However, the opposition parties in the province expressing their

    reservations charged that federal government wishes to loot the

    resources of the province.

    Source: Xinhua



  • so whats the legal share of balauchis in this? 100% ? 50% ?



  • 25%, thats what the Govt is saying:

    "Balochistan government has 25 per cent stake in the Rekodiq project. Rest of the 75 per cent stakes of the project have now been taken over on 50:50 basis by Antofagasta of Chile and Barrick Gold of Canada."

    And note this:

    "The Rekodiq mining area has proven estimated reserves of two billion tons of copper and 20 million ounces of gold. According to the current market price, the value of the deposits has been estimated at about $65 billion, which would generate thousands of jobs.

    The size of Pakistan’s national economy (GDP) at present is about $104 billion."

    ARE WE EXPECTING ANOTHER DARFUR SOON????



  • you are right this might be a curse rather then a blessing. I always thought we were lucky to not have any oil since we are not capable of protecting it.

    75% we are going to give away just because we cant mine or research our own resources. Chile is no super power if their firm came from another continent to find our resources for us its a matter of shame for us.



  • I was just having a chat with a mate in Islamic Development Bank and was telling that Norway is conducting surveys in Pakistan to grow Bio-fuel especially in Desert area of Pakistan, which looks promising. If it goes through there will be significant reduction in food supplies in the country. Plus 170 million tone of coal reserves in Thel area. We are just getting ready to be invaded once more!



  • thats it

    now the looting will start.



  • This project as well as "saindak" is more of a pipe dream than anything else.

    Givin the nature of reserves, the mining cost will be so high that it will not be commercially viable to mine a substantial quantity. So the actual minerals mined will be miniscule.



  • Well there is a similar story that happened in Sudan when the mineral reserve found in the north of the country were declared not commercially viable by Western companies until China came and start extracting them. It’s the Oil lobby and Generals who are against coal mining in Thar, as the Chinese company after spending $10 million wrapped up its operation due to lack of favourable tariff offered by Mush & Co.

    Bureaucrats conspire with oil lobby to block Thar Coal power project:

    http://www.yousufnazar.com/?p=342



  • Thar coal is yet another overhyped project. Many people talk about vast 'potential reserves. But no actual mining has yet been done to ascertain teh quantity of these reserves. The sceptics of thar coal point out that the coal in thar is 'lignite' which is the lowest quality coal. Moisture content is this coal is close to 40-50%. Furthermore, the reserves are located in a desert area where mining costs are high. Additionally, tehre is no water in the area which is essential for treatment of mined coal. That water will have to be brought from 'Rinni' canal at prohibitively high cost.

    In fact, any electricity produced from Thar coal will be perhaps the most expensive 'coal based' electricty in the world. It make make much more economic sense to import coal and have coal based power plants than mining thar coal for electrcity production.

    A good option can be to fully utilize coal reserves at 'lakhra' in dadu district which are smaller in quantity but much better in quality than thar coal.



  • thats why pujab wont let baluchistan go independent.

    punjab cant survive without baluchistan and sind.

    do you think punjab can feed this huge military. it cant feed its own people,let alone its military.

    thats the reason you will find every punjabi to be super nationalist and super muslim.

    if pakistan disintegrates the biggest looser is punjab.



  • I wish I could agree with you mauafera, but it is not the truth. I only mean to contradict your observation about Punjab not being able to survive. I think it is very much able to survive, but so is the United States of America. Does this mean the United States will let go of its exploitation in other countries? Of course not. So is the case of our Punjab. Even though it is in a position to survive independently now, it will still not let go of a bird that lays golden eggs. The thinking is: why not squeeze some more juice out of this lemon if possible, and until we can.



  • rebel,

    yr right. punjab is exploiting and wont let go but frankly bunjab cant sustain this army.

    pak military is of no use anymore. it has gotten so fat now that only pakistani resources are not enough for it now thats why its selling its services to u.s. who ever the biggest bidder. the situation is going to get worst.