Changes in Reko-Diq contract terms: Centre trying to convince Balochistan government

The federal government is trying to convince the Balochistan government to withdraw its stance regarding changes in the terms and conditions for exploration of the goldmine project contract at Reko-Diq, and allow Tethyan Copper Company (TCC) to go ahead as per existing terms and conditions.
If the provincial government makes certain changes in the terms and conditions for exploration of goldmine contract at Rek-Diq area of Balchistan it would encourage other companies to claim such relaxations in future. A series of meetings between the stakeholders were held but an amicable solution till could not be reached. The Chairman of Board of Investment (BOI), Saleem Mandviwalla, confirmed that it was in the interest of the government that the existing terms and conditions between Balochistan and TCC should not be revisited.
About the reason why federal government is not in favour of changing the terms and conditions for exploration contract to TCC, he said, "In case the terms and conditions of one project are changed, the provincial government would be bound to revisit other contracts of similar nature. "It would create problems in future as other international investors would demand similar changes (in terms and conditions), which I'm sure is not a good idea".
He said that Pakistan has committed to provide level playing field based on equality to both local and international investors. "Once we change the rules for foreign investors then local investors could also claim the same concessions", he added. The Balochistan government has a view distinctly different from the federal government, and it relayed this view to the National Assembly standing committee on petroleum and natural resources. Its main grouse is that the province would receive a negligible profit of $5 billion in 56 years from the world's third largest goldmine and copper reserves under Reko-Diq copper and goldmine project.
Referring to two separate available data of deposits of Reko-Diq, the Balochistan government said that the TCC in its feasibility report confirmed 0.002 percent of uranium along with gold and copper gold reserves of Reko-Diq project. The data released by petroleum ministry also confirmed that TCC identified 11.65 million tons of copper worth $93 billion and 21.18 million ounces of gold - amounting to $30 billion. The TCC had insisted a freeze in the royalty rate at 2 percent, instead of 5.
The Balochistan cabinet decided not to go with TCC on Reko-Diq goldmine project. However, the final strategy would be chalked out when the Supreme Court gives its verdict on the matter.
An official of Balochistan government insisted that China has also expressed interest to work in the area of Reko-Diq; but denied that the government had taken any decision to extend a multi-million dollar deal for gold and copper mining in Saindak for another five years after its expiry in October 2012 with the Chinese partner Metallurgical Corp of China (MCC).