Pakistan

Pakistan approves US 900 million to Antofagasta for definitive settlement

Government approved US 900 million dollars to Antofagasta for exiting the project
Reko Diq to be renamed as Barrick Reko Diq Holdings Limited (BRDHL)
OGDCL,PPL,Govt Holdings Pvt Limited (GHPL) have replaced Antofagasta

 

The Economic Coordination Committee (ECC) after the Supreme Court endorsement approved a payment of more than $900 million to the Chilean firm Antofagasta over six years to exit the Reko Diq project.

The ECC considered and approved two important agenda items related to Reko Diq project, thus paving the way for early start of the Reko Diq Project.

The decisions taken were to meet deadlines for an out-of-court settlement with the Tethyan Copper Company to avoid a looming $10bn international arbitration award. The ‘definitive agreements’ are ready to be signed by Dec 15 under the settlement deal.

OGDCL, Pakistan Petroleum Limited and Govt Holdings Pvt Limited (GHPL) — have already deposited $900m in an escrow account for payment along with interest in six years to Antofagasta Minerals of Chile to exit the project.

These entities are also required to arrange about $4.3bn equivalent funds as an equity investment in the restructured project, now named Barrick Reko Diq Holdings Limited (BRDHL), to be operated by Canada’s Barrick Gold Corporation mining company.

It was presented that government of Pakistan (GoP) and Provincial Government of Baluchistan (GoB) entered into an out-of-court dispute settlement with M/s Tethyan Copper Company Pvt Limited- a consortium of Barrick Gold Corporation of Canada and M/s Antofagasta PLC of Chile, in respect of Reko Diq Copper-Gold Project in Chaghai district of Baluchistan.

As per settlement terms, Government of Pakistan has to clear liabilities to Antofagasta PLC. In the light of the terms of agreed settlement, the ECC allowed Finance Division to direct GHPL (for its own as well as GoB’s share), OGDCL and PPL to deposit the aggregate amount of interest to the sum of US$ 22,718,173/- in the escrow account from March 31, 2022 to December 15, 2022.

Federal Minister for Power Mr. Khurram Dastgir Khan, Federal Minister for Commerce Syed Naveed Qamar, Minister of State for Petroleum Mr. Musadik Masood Malik, Minister of State for Finance and Revenue Dr. Ayesha Ghous Pasha, SAPM on Finance Mr. Tariq Bajwa, SAPM on Revenue Mr. Tariq Mehmood Pasha, Federal Secretaries, Chairman FBR and other senior officers attended the meeting.

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