Reko Diq Gold Reserves
-
Upload
javaid-iqbal -
Category
Documents
-
view
188 -
download
3
Transcript of Reko Diq Gold Reserves
REKO DIQ GOLD AND COPPER RESERVES
89th Junior Management CourseMukhtar Ahmad
Assistant Manager (CA)NPCC Islamabad
CONTENTSIntroductionLocation ReservesTethyan Copper Company (TCC) Investments ControversiesclarificationConclusion
IntroductionReko Diq is a sparsely populated
desert in Balochistan.It is famous world wide for its
huge Gold & Copper reserves.TCC is developing and will
operate a world class gold mine at this site.
Supreme court has recently passed judgment on this case.
Location of Reko Diq
LocationReko Diq is a remote location in
the North-West of Chagai district.It is close to Pakistan, Iran and
Afghanistan border.Access to the Chagai district is
via Zahidan - Quetta highway.
ClimateMostly low relief and thinly
populated desert.In Summers temperature range
is 40oC - 50oC.In Winters temperature drops to
-10oC.Windy area with sand storms.
ReservesThe deposit at Reko Diq is world 5th largest reserves.
Total reserves : 5.9 billion tons oreCopper grade of 4.1Kg/ton and
gold grade of 0.22 g/ton.Mineable portion : 2.2 billion tonsCopper grade of 5.3Kg/ton and
gold grade of 0.30 g/ton. Mining life is 56 years.
Sample Reko Diq Gold Rock
Tethyan Belt
Tethyan Copper CompanyIn 1993, the GOB signed an
agreement with Australian company BHP Billiton for exploration purposes.
TCC was formed in 2000TCC company with shares as: 25% GOB 75% BHP Billiton
Tethyan Copper Company
Tethyan Copper Company
BHP Billiton sold its share to Barrick Gold and Antofagasta in 2002.
Current share status :- Barrick Gold => 37.5% Antofagasta => 37.5% GOB => 25.0%
Investments by TCCSo far 220 million US$ have been
spent on exploration since 2006.Feasibility report was submitted to
GOB in august, 2010.3.3 billion US$ of initial investment
is required.2 billion US$ is for a 600km
pipeline from Reko Diq to Gwadar for transportation of the slurry bearing copper.
Controversies25% Share of GOB is very
small.Federal govt. is not playing good
role.MNC wants maximum profits.Local people will get no
benefits.Only copper ore will be
extracted.Smelting and refining will be
done in foreign countries.
1.Clarifications and Justifications Media is discussing only the
US$260 billion worth of Reko Diq's reserves.
They forget about financial costs, investment costs and technology.
They have the right to mine, for they discovered it.
GOB has not spending a single penny for exploration.
2.Clarifications and Justifications Balochistan Mineral Rules:
Balochistan Mineral Rules 2002 also stipulate exclusive rights of exploration to the investor with mining lease entitlement upon discovery of a viable resource.
50% of the total output when royalties, taxes and 25% profit share are taken into account comes to Govt.
3.Clarifications and Justifications Condition of the AreaMost backward and least-
developed areas of Pakistan.Very low human development
indicators.Harsh weather.Project like this can really boost
the economy and social uplift.
4.Clarifications and Justifications Smelting and RefiningSmelting captures less than 10%
of the copper economic chain value
Smelting and Refining will be done in foreign country.
This will vitalize the Gwadar port.
But now it will be done indigenously too.
5.Clarifications and JustificationsRejecting the foreign company
will impart a bad image on foreign investors.
Lack of Technology and Funds.No significant development in
local mining.Example of Saindaq and bad
image of government.
Conclusion Deal should be transparent. We should not reject the foreign
investment.We can use local investment on
other sites.We should use the opportunity
to boost our local mining industry.