After the Supreme Court of Pakistan approved the multibillion-dollar Reko Diq project contract, the Cabinet’s Economic Coordination Committee (ECC) recommended setting an escrow account for $900 million to make the project operational.
The committee also adopted a summary of Pakistan’s $717 million six-year spending plan.
Ishaq Dar presided over a virtual Cabinet committee meeting. With the approval of the federal and provincial cabinets, Pakistan and Balochistan have reached an out-of-court settlement with M/s Tethyan Copper Company Pvt Limited, Australia (TCCA) [jointly owned by Barrick Gold Corporation of Canada and M/s Antofagasta PLC of Chile] over the Reko Diq Copper-Gold Project in Chagai district (Balochistan).
Under the settlement agreement, the joint venture was divided into 50% shares by Barrick Gold Corporation, 25% by the federal government through Pakistan Minerals (Private) Limited (SOEs’ SPV), and 25% by Balochistan as 10% direct free carried plus 15% through Balochistan Mineral Resources Limited (GoB SPV), to be paid by the Pakistan government along with capital and operating expenses on the project.
