Pakistan will have to invest 4.3bn dollars in Recodic, briefing in SC

Islamabad: Foreign experts have told the Supreme Court in a briefing that an investment of 8 billion dollars is necessary in the Rekodic project at this time, if the government of Pakistan and Balochistan want to get the benefit, then the investment must also be made.

According to Leading News, a five-larger bench headed by Chief Justice Umar Atta Bandyal heard the presidential reference related to Recodek in the Supreme Court. During the hearing, international experts from the federal and Balochistan governments briefed the court on the agreement.

The foreign expert said that an investment of 8 billion dollars is necessary in the Rekodic project at the moment, if the government of Pakistan and Balochistan wants to get the benefit, then the investment must also be made.

Chief Justice Umar Atta Bandial asked a foreign expert that means the government of Pakistan and Balochistan will have to invest 4 billion dollars out of 8? How long is the current investment and when will the return be realized?

The foreign expert said that there are two phases of the present contract of Recodec, the first phase of the Recodec contract is for 5 years while the profit will start from the second phase, Pakistan will invest 4.3 billion dollars for 5 years.

Justice Yahya Afridi said that the court was told that the recent contract of Recodic is the best in the current situation, did Pakistan try to contract with the company against Barrick Gold Company?

Justice Ijazul Hassan asked whether Pakistan can enter into a recode contract with another company under the penalty of 10 billion dollars.

The foreign expert said that Barrack Gold Company has mining expertise, if Barrack Gold did not have the expertise or there was a better company than them, then Pakistan could have contracted with any company other than Barrack Gold in the public sector of Pakistan. Couldn’t be a better deal, the mine life at Rekodic is 47 years, the Rekodic contract will produce 400 tonnes of copper per year.

The Additional Attorney General said that the total profit that the Government of Balochistan will receive from the Recodec agreement in 40 years will be 32 billion dollars, thus the Government of Balochistan will get an annual profit of 0.8 billion dollars from Recodec.

The Chief Justice said that the Supreme Court is not looking at financial but legal matters in the presidential reference, what assurance does the Barrack Gold Company need from the Supreme Court? In which country will the raw minerals from Rekodik be refined? What will Pakistan get from Rekodic project?

The Chief Justice said that the question has been raised earlier in the country that Pakistan does not get a share in the gold coming out of Rekodik, on which the Additional Attorney General said that the minerals from Rekodik will be refined by the company that gives the best offer.

Later, the hearing of the case was adjourned till November 8.