2003 to 2017: $2 billion collected through Saindak project from China: Omar

Federal Minister for Energy Omar Ayub Thursday said that a total of $2 billion had been collected through Saindak project from China during 2003 to 2017. During the question hour session of the National Assembly, the minister told the House that a state-owned entity of People's Republic of China, namely M/s Metallurgical Corporation of China Ltd (MCC), has been engaged for operation of Saindak Copper Gold Project (district Chagai, Balochistan) under a documented agreement with Saindak Metals Limited (SML), duly signed between the parties on 30-11-2001. He said that the contract was awarded in accordance with the international practices after fulfilling codal formalities including competitive bidding with the approval of the federal cabinet.
He said that the contract between SML and MCC was initially made for 10 years w.e.f. October 02, 2002. He said that the contract term was extended in five years spell up to 31st October, 2022 with the consent of government of Balochistan and approval of the federal cabinet.
He said that the salient terms and conditions of the Contract are given as: (i) annual rent: US $0.500 million paid to SML; (ii) royalty; 5% of sale proceeds paid to government of Balochistan, (iii) presumptive tax; 1.00% of sale proceeds paid to government of Pakistan, (iv) EPZ Dev Surcharge: 0.50% of sale proceeds to EPZ Authority, (v) profit sharing: 50% of cash surplus to SML [of which 60% on net basis is shared with GoB under Aghaze Haqooq-e-Balochistan Package] and (vi) social uplift support: 5% of net profit will go to Miners' Welfare Board, GoB.