Representing identical constitutional petitions and applications before a three-member bench of Chief Justice Iftikhar Muhammad Chaudhry in the case, Tariq Asad contended that Chagai Hills Exploration Joint Venture Agreement (CHEJVA) was executed between BHP and government of Balochistan in 1993 and the content of the agreement was contrary to the provisions of Business Rules 1970.
Asad further told the court that in 1994 the concerned authority exercised power conferred by Rule 98 of Balochistan Mineral Concession Rules 1970 and granted exemption to the joint venture on 13 counts. Asad pleaded that Rule 98 was inconsistent with Section 5 of the Regulation of Mines and Oil Fields and Mineral Development (Government control) Act 1948, saying under Section 5 an exemption could be given to any mineral or mineral oil but under Rule 98 the exemption was allowed in different activities as a special case to the joint venture.
He further contended that notification passed under Rule 98 was ultra varies of the Act, adding that since the terms of the agreement on Reko Dik mining lease between the parties was in violation of the Rules so the agreement must be deemed illegal. Asad further argued that if an agreement was declared void then there were no rights or liabilities between parties. He added that the provisions of the addendum, optional agreement and the alliance agreement were also not valid. Asad also claimed that all the subsequent CHEJVA agreements were not legal.
He prayed the court that since the Reko Diq mining lease had been refused to TCCP by Balochistan government it may be leased out through international bidding. He submitted that the guidelines to lease out the Reko Diq mines could be derived from a study undertaken by the World Bank on Aynak Copper Mine Afghanistan. Advocate General Balochistan Amanullah Kanrani contended that there were many constitutional petitions and applications relating to the instant matter pending before the bench.
Resuming his arguments in the case, Kanrani told the bench that reservations were expressed by the parties concerned on the decision of the Balochistan High Court (BHC) in June 2007 soon after the new agreement was allegedly executed between TCC and the Government of Balochistan. Later, the bench adjourned the hearing of case till today (Thursday).