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  • Dec 11th, 2012
  • Comments Off on Reko Diq case: Cabinet”s approval not sought, Supreme Court told
Balochistan''s top legal officer Amanullah Kanrani contended on Monday that Cabinet''s approval was not sought by the governor while signing the addendum to the contract in favour of BHP Billiton. A three-judge bench led by the Chief Justice Iftikhar Muhammad Chaudhry resumed the hearing of identical petitions filed against the lease awarded to foreign companies to mine gold and copper rich fields in Reko Diq in district Chaghai, Balochistan.

From the outset of hearing Chief Justice Iftikhar Muhammad Chaudhry observed that the law would take its course in the instant matter and asked Balochistan government to produce evidence in support of its contentions. Concluding his arguments Kanrani maintained that the mining lease awarded to Tethyan Copper Company (TCC) was not legal. According to him, Barrick Gold and Antofagasta Minerals became a party to the agreement without any reason. Kanrani also accused Barrick Gold Corporation of purchasing the contract from BHP at a cost of $60 million which was later sold to Antofagasta Minerals for $140 million.

Ahmer Bilal Soofi, the counsel for the Balochistan government, contended that the mining area in Reko Diq had not been specifically allotted in the agreement. To which Justice Gulzar Ahmad questioned whether the agreement was spurious. Soofi clarified that the joint agreement was limited to the feasibility phase and did not include mining and extraction of gold and copper rights. The Chief Justice observed that Balochistan Development Authority (BDA) provided a guarantee to BHP Billiton that the provincial government would issue a licence for mining Reko Diq. The hearing of case was adjourned till December 11.

Copyright Business Recorder, 2012


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