Fed govt refuses to transfer gold, copper project
20 March, 2013
ISLAMABAD: The Finance Ministry has refused to transfer the ownership of Saindak Metal Limited (SML), gold and copper mining company to Balochistan under Aghaz-e-Haqooq-e-Balochistan (AHB) package as the federal government claims that the company has to repay a Rs 27 billion loan to it.
ISLAMABAD: The Finance Ministry has refused to transfer the ownership of Saindak Metal Limited (SML), gold and copper mining company to Balochistan under Aghaz-e-Haqooq-e-Balochistan (AHB) package as the federal government claims that the company has to repay a Rs 27 billion loan to it.
This was revealed during the Senate's Standing Committee on Petroleum and Natural Resources meeting, which was chaired by Senator Muhammad Yousuf.
Under the AHB, it was decided that the company may be transferred to Balochistan, but could not honour the decision due to non-payment of the invested amount by the provincial government to the federal, it was revealed during the meeting.
SML Managing Director Muhammad Raziq Sanjrani informed the committee that the federal government had earned revenue of $220 million whereas the Balochistan government received $39 million as royalty since 2002. He said that a Chinese company Metallurgical Corp of China (MCC) had given $210 million to SML.
The meeting was informed that the federal government had invested Rs 27 billion on project infrastructure, which it claimed was a loan and Balochistan should pay it before transferring the ownership of the company to it.
A member of the committee strongly criticised the federal government for claiming a loan and was surprised to know that it had received $220 million from Sandak gold and copper project against investment and was claiming investment as a loan.
The committee was also informed that the government extended a multi-million-dollar deal for gold and copper mining in Saindak for another five years after its expiry in October 2012 to a Chinese partner MCC.
The Chinese company came under fire for refining gold and copper in some foreign company. Senators alleged that mineral reserves of Saindak project had a lot of different other minerals in addition to copper and gold but there was no monitoring to check it. The committee asked the management to get samples of gold and copper checked from a laboratory in United Kingdom (UK). The committee was also informed that the Chinese company had no refinery to process gold and copper and was refining ore from some other refinery.
The foreign company is looting the precious metals of Balochistan and major share of the national assets are going in favour of foreign country instead of government of Pakistan. There is no monitoring system, and all is done just to please the foreign company. Yousaf said the whole committee will visit the project site in Chagi, Balochistan and will collect complete records. He said local people avoid going to Balochistan but Chinese working on this project were going there and extracting copper reserves. “This is our national asset and we know how to defend it,” the chairman maintained.
Senator Abdul Nabi Bangash said that it was a criminal act to extend lease to a Chinese firm and the ownership of Saindak gold and copper project had not been transferred to Balochistan province. He said the Pakistan People's Party government had done nothing for Balochistan. “There has been the so called government in Balochistan for the last five years but still the Chinese firm succeeded to get an extension,” he added.
Another member of the committee Rubina Irfan said, “Gold and copper project was launched for the welfare of the local people, but there is no facility of school, hospital and water supply for the local people,” she added.
Muttahida Qaumi Movement's Senator Mustafa Kamal said extension in lease of Saindak project to the Chinese company was a criminal act. He also criticised the federal government for not transferring ownership of SML to Balochistan despite the former had received a huge amount against investment made in the project.
Committee chairman Yousuf said the Chinese firm had occupied gold and copper resources in Balochistan by investing $25 million. He said samples of ore from Saindak should be checked from UK laboratory.
In a meeting of parliamentary panel, Senator Abdul Nabi Bangash protested strongly over directives issued for prime minister and ministers' constituency, while ignoring areas of Kohat and Thal where oil and gas were being produced. “I have filed a petition in the Peshawar High Court to implement the directive of the prime minister to launch gas schemes in my constituency,” he said and warned that the situation of Khyber Pakhtunkhwa would become like Balochistan if gas was not provided to the local people.
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