Sunday, March 8, 2009

Australian Firm To Invest In Pakistan Copper, Gold Mine

The availability of proven 167 million tonnes copper ore reserve in Reko Dik Balochistan have attracted Australia's Tethayan Copper Company (TCC), which has decided to launch a mega project and invest over $1 billion by 2010, official sources in the Ministry of Petroleum and Natural Resources told Pakistani newspaper, Daily Times, on Saturday.

The mega project would produce 250,000 tonnes of copper annually, thus bringing Pakistan for the first time on the copper-producing map of the world.

TCC finalised a feasibility study of the starter project aiming to produce 40,000 tonnes of pure copper with an investment of $200 million. As a result of extensive drilling in the area about 167 million tonnes copper ore reserves have been proved. Field studies to assess social and environmental impact of the project have also been completed. The sources further said that due to large size of the deposit M/s Antofagasta & Barrick Gold have taken over 100 percent Australian shares of the TCC. The new management has decided to launch a mega project with an investment of over $1 billion next year.

By commencement of the mining activities in the area, job opportunities were expected for about 1200 locals of Balochistan, which would help in removing deprivations of the province. Moreover commencement of the project would give impetus to foreign investment in mineral sector of Pakistan, the sources maintained.

As desired by M/s Antafagasta-Barrick Gold, Ministry of Petroleum and Natural Resources is working on the preparation of international mineral agreement to be signed between the company, government of Balochistan and the federal ministry. To solve the issues relating to the exploration/mining of Reko Dik copper-gold deposits on fast track, a high level steering committee has been constituted by the government of Pakistan having representation from all the stakeholders including the government of Balochistan.

Reko Diq is a giant copper and gold project in Chaghi, containing 12.3 million tonnes of copper and 20.9 million ounces of gold in inferred and indicated resources. The copper-gold deposits at Reko Diq were believed to be even bigger than Sarcheshmeh in Iran and Escondida in Chile. The Reko Diq copper deposits, which are in the neighborhood of Saindak copper project, are four times larger in copper ore tonnage than Saindak. The most credible international surveys suggest that Reko Diq was one of the biggest undeveloped copper projects in the world with over 11 billion pounds of copper and nine million ounces of gold.

The sources further said that potential of the country in this sector was widely recognised but the sector is not developed. The government made the development of the mining industry as ‘priority sector’ in various five years plans, but none of these efforts were materialised. Adequate institutional, human, research and development and other relevant infrastructure have been established for improvement of this sector but they remain under-utilised.

Source: Daily Times, Lahore

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