Reko diq project..!!

[Silent Spectator]

Reko Diq Project: Possessing Baloch Assets


Balochistan is Pakistan’s largest province having 43.5 per cent landmass of the country with only 4 per cent of the country’s overall population. Balochistan remains the most neglected province and 88 per cent of its population lives in subhuman conditions. In terms of literacy, higher education, technological development, healthcare, infrastructure development and industrialization, the province is far behind rest of the country. Nevertheless, Balochistan is endowed with some of the world's richest reserves of natural energy (gas, oil, coal); minerals (gold, copper), having strategic mountainous borders adjoining Iran and Afghanistan on the west and a coast stretching from the Persian Gulf to the Arabian Sea in the south. In 2003, with the allocation of billion of rupees for development and uplift of Balochistan by the federal government, winds of social and political change started blowing. Dozens of mega development projects in Balochistan including Gwadar Port, Coastal Highway, Mirani Dam, Kachhi Canal and Sandak Copper Gold project were initiated. The development of rail, road and sea communication originating from Gwadar in all directions is expected to generate tremendous economic activities in the areas. It will facilitate the movement of goods from China and Central Asian Republics to the countries of the Persian Gulf, Middle East, East Africa, the Indian Ocean and beyond through Gwadar. The projects are aimed at ending the sense of deprivation among the people of Balochistan.

As the mineral wealth could not be exploited in the past due to lack of interest and absence of modern technology in the country, therefore, foreign investors and companies were encouraged to invest in exploiting the riches of the province. Pakistan has proven reserves of metallic minerals i.e. copper, gold, silver, chromites, iron, lead and zinc, which are still untapped. One of the world’s largest reserves of gold and copper were discovered at Reko Diq in the Chaghi area of Pakistan’s southwest Balochistan Province. According to development experts, some 12.3 million tons of copper and 20.9 million ounces of gold lie in the Reko Diq area. The copper-gold deposits at Reko Diq are believed to be even bigger than those of Sarcheshmeh in Iran and Escondida in Chile. Three Australian mining companies, BHP Billiton, the largest Copper mining company in the world, Tethyan Copper Company (TCC) and Mincor Resources are engaged in the exploration of copper, gold and other base metals in district Chaghi, Balochistan with an investment of about US$ 152 million. Under the agreement, 75 per cent shares were given to TCC of Australia and 25 per cent to the Balochistan Development Authority (BDA). An annual production of 200 to 500 million pounds of copper is estimated. Reports emerging from various sources indicate that the US $ 65 Billion natural deposit will be sold for US $ 21 Billion to TCC. The TCC states that work on the feasibility study has commenced and the project is expected to be completed in early 2012. It is a world class copper/gold porphyry style deposit. The world copper and gold prices have been doubled from the first estimates for our reserves. Why should we give out 75% of our reserves to get 25% back after investing 25% in the project? The provincial government is seeking to get about 80 per cent of the project share.

Ever since the Balochistan crisis started, a “foreign hand” is being responsible for the troubles in Balochistan. The tug of war to reach the natural resources of CARs is generally called as “Great Power Game” with Iran, USA, India and Russia as active players promoting their respective national interests. India wants to capture oil and gas reserves from Central Asia and Iran, through Afghanistan and Pakistan. Therefore, it is reasonable to assume that India would attempt to create hurdles and would ensure that the Gwadar deepwater port does not become hub port. Washington's interests in Balochistan have become very pronounced over the period of time. The sole objective of the US was to possess the enormous natural resources of Central Asian Republics as well controlling the transit trade routes. The Baloch see the United States as a potential troublemaker. Some Pakistanis suspect that Washington would like to use Balochistan as a rear base for an attack on Iran and would also like to get China out of the region. To begin US wants to encircle China by not allowing pipeline from Iran through Western China via Pakistan. The United States, in competition with China and Iran, would like to control the oil supply lines from the Middle East and Central Asia and would also like to use its Greater Middle East initiative to dismantle the major Muslim states and redefine borders in the region.

The people of Balochistan feel dispossessed by this unjust Reko Diq project as the agreement with TCC has not only undermined the rights of the Baloch people, bur also depriving the Balochis worth billions of dollars. Realizing this, the government of Balochistan has cancelled the agreement with TCC Australian company for exploration of copper and gold in the Reko Dik area of Chaghai district. Now, the Balochistan government had handed over affairs of the project to the department of mines and mineral development and acquired the services of eminent nuclear scientist Dr Samar Mubarakmand who would head its board of governors. The proponents of scuttling the project state that the mines will create thousands of high paying jobs and give a massive boost to the local economy. However, this demands revenues generation activity (international funding) to acquire infrastructure associated with the mining industry. Secondly, it also necessitates the provision of local expertise to explore and develop deposits for export. Nevertheless, the termination of the contract with world's leading gold and copper mining firm could mar Pakistan’s image as an investment destination, and the multinational corporations would not invest in a country where deals were cancelled after finalization of the contract. The provincial government wanted TCC to establish refining and processing facilities in Balochistan to ensure export of finished copper and gold for better economic returns, but the TCC was not ready to accept this demand and wanted to export copper concentrate. The federal government has sought a detailed report from Balochistan after some foreign governments raised questions about the provincial government's decision to terminate a multi-billion-dollar agreement with TTC to develop a copper and gold mine at Reko Dik.

The strategy to end deprivation in Balochistan based on major economic development projects has failed to demonstrate tangible results for the Baloch populace. This is probably due to the emphasis focused on “material culture” (construction of mega projects), and not on the “immaterial culture”, (developing human capabilities). The government must work in developing ‘human capabilities’ & professionalism amongst the local populace of Balochistan, which is important for the labor-intensive industries. Until the focus involves both the factors and the Balochis become more involved, the development projects will continue to be reviewed as tool of exploitation. The government must re-orient the education system to enhance skills development, productivity and employment and meet the challenge of competitiveness posed by technological advancement. The renewed emphasis on the “human skill” will require on dramatic effort to educate and train workers, so they can play a larger role in the province’s economic development
Regards