ISLAMABAD: Pakistan’s military is taking a key role in the development of one of the world’s biggest untapped copper and gold deposits, which is currently stalled by a multi-billion dollar legal wrangle with foreign mining firms, multiple sources familiar with the situation said.
The Reko Diq mine has become a test case for Prime Minister Imran Khan’s ability to attract serious foreign investment to Pakistan as it struggles to stave off an economic crisis that has forced it to seek an International Monetary Fund bailout.
Ten current and former provincial and federal government officials and mining sources familiar with the project in the Baluchistan region say the military has become the most important voice on the future of Reko Diq, which it sees as a strategic national asset.
The military will not only be in a position to decide which investors develop the deposit, but an army-controlled engineering firm, Frontier Works Organization (FWO), is positioning itself to be a member of any consortium involved, these people said.
“This has been taken over by GHQ,” said a senior Baluchistan government official, referring to the Pakistan army’s General Headquarters in the garrison city of Rawalpindi.
In a statement in response to Reuters’ questions about its role in Reko Diq, the military spokesman’s office said: “(The military) may only participate in government’s plan of development of Reko Diq, as per national requirements.”
But it acknowledged that FWO, best known for building roads through Pakistan’s rugged and lawless border regions, has developed “substantial” mining capability in recent years and would be interested in taking a role in the project.
“If an opportunity arises of participating in developing Reko Diq, FWO may work at par with other competitors (or) companies provided the project is financially viable (or) suitable,” the statement said. When asked, a spokesman declined to elaborate on the statement.
Pakistan’s Information Minister Fawad Chaudhry said civilian authorities in the insurgency-hit southwestern province of Baluchistan were in charge of Reko Diq and, along with Khan, would take a decision, but added that the military “and all other stakeholders are obviously important players.”
FWO referred questions to the military spokesman’s office. Khan’s spokesman Iftikhar Durrani said Baluchistan province was in charge of Reko Diq, and referred questions to the provincial government and the military spokesman’s office.
The manoeuvring behind the project shows how the military, which has historically dictated Pakistan’s security and foreign policy, is leveraging its sway over the civilian government at federal and provincial level to carve a growing role in the nation’s business affairs.
“The military has taken a front seat,” said Ayesha Siddiqa, author of the book “Military Inc.,” which analyzes the army’s business interests and influence in Pakistan.
“They’ve understood that the economy is important for having a strong military,” she said. “Control of the economy also gives the military a handle over expanding their business interests.”
TALKS
Buried at the foot of an extinct volcano near the frontier with Iran and Afghanistan, the mine’s development has long been delayed by a dispute with previous investors in the project, Canada’s Barrick Gold and Chile’s Antofagasta.
The government is urgently trying to settle the dispute as a World Bank arbitration tribunal, which ruled against Pakistan in 2017, is in the next few months expected to announce how much in damages the country must pay to the foreign firms, who are claiming more than $11 billion.
The dispute relates to the withholding of a mining lease.
Islamabad is also trying to find new partners to invest in the project.
But any new investors will need the blessing of Pakistan’s military, according to government officials and mining sources.
State-run companies from resource-hungry China have long coveted Reko Diq and more recently Saudi Arabia has shown interest, according to Pakistani officials.
Some Western diplomats say the Reko Diq dispute has been a significant foreign investment deterrent, with international businesses unnerved at how Pakistan dealt with the companies that had pledged to invest $3.3 billion to develop the country’s then-biggest mining project.
Barrick Gold and Antofagasta, whose joint venture Tethyan Copper Company (TCC) discovered vast mineral wealth in Reko Diq, say they had invested more than $220 million by the time the Baluchistan government, in 2011, unexpectedly refused to grant them the critical mining lease needed to keep operating.
Pakistan argued its move was legitimate because TCC’s feasibility study was incomplete and the country’s Supreme Court voided the deal in 2013. But in 2017 the World Bank’s International Center for Settlement of Investment Disputes (ICSID) ruled against Pakistan.
TCC did not respond to requests for comment and Antofagasta and Barrick Gold both declined to comment. Reuters could not determine whether either company would be willing to return to the project.
FOREIGN INVESTORS
The last serious attempt at settling the Reko Diq case was scuppered in 2016 by the military, which vetoed paying hundreds of millions of dollars to TCC, according to a senior Baluchistan official and two former senior officials in Islamabad.
But the military has since changed its stance and is more open to a settlement with TCC, according to a lawmaker close to the military and a source close to Prime Minister Khan. The military was also involved in appointing Pakistan’s current legal team.
In response to a Reuters question about blocking the previous settlement effort, the military said: “Let’s see how the case progresses.” It did not elaborate or comment on whether it was playing any role in the latest negotiations.
Some mining experts say a likely solution would be for a new investment consortium to pay the settlement fee on behalf of cash-strapped Pakistan in exchange for future royalty fees or mining rights.
Information Minister Chaudhry said Pakistan was engaged in negotiations with “both” the current investors about a settlement and also potential new investors, with interest coming from the Middle East and Europe. He declined to name the potential investors.
Pakistani Finance Minister Asad Umar said in October that Saudi Arabia has inquired about investing in Reko Diq and another government official confirmed talks were ongoing.
Saudi Arabia did not respond to a Reuters request for comment on Reko Diq. During Crown Prince bin Salman’s visit to Pakistan last month, the kingdom pledged to invest $2 billion in mineral development projects, though the provisional agreements were vague and did not mention any specific projects.
China’s state-owned miner China Metallurgical Group Corporation (MCC), which operates the Saindak copper and gold mine close to Reko Diq, has been eyeing the bigger deposit for more than a decade, according to mining and MCC officials.
A few years ago Chinese state giant Norinco also made an approach, according to two sources familiar with Norinco’s offer.
MCC and Norinco did not respond to requests for comment.
When a mining company approached former general Abdul Quadir Baloch about Reko Diq around 2016, when he was federal minister for the frontier regions, he took their proposal not only to then-premier Nawaz Sharif, but also to the army chief.
“The military has to give a (security) guarantee to any company coming in to explore or exploit this project, so they are a stakeholder,” said Baloch.
The military declined to comment on Baloch’s assertions. Sharif, who has since been jailed on corruption charges, could not be reached for comment.
The army-run FWO does not have the funds or the expertise to develop the Reko Diq project, which boasts 5.9 billion tons of ore. But it could be part of a consortium alongside global miners who have the know-how to mine such a gargantuan deposit.
The military’s role in developing natural resources in Baluchistan also carries risks, however, analysts say.
Indigenous Baloch people view outsiders with suspicion, and their anger about Islamabad exploiting the province’s vast natural resources has been one of the key themes fueling a separatist insurgency that began around 2004.
Pakistan military eyes key role developing giant copper and gold mine
Pakistan military eyes key role developing giant copper and gold mine
- Buried at the foot of an extinct volcano near the frontier with Iran and Afghanistan, Reko Diq has world’s biggest untapped copper and gold deposits
- The project boasts 5.9 billion tons of ore inviting foreign investors
Pakistan forms special task force to curb human smuggling after Morocco boat capsize
- A migrant boat capsized near Morocco’s coast on Jan. 15 while carrying 86 migrants, including 66 Pakistani nationals
- The tragedy once again underscored the perilous journeys many migrants embark on due to conflict, instability at home
ISLAMABAD: Prime Minister Shehbaz Sharif has formed a special task force to curb human smuggling in Pakistan, Sharif said on Friday, days after a migrant boat carrying over 60 Pakistanis capsized near Morocco.
The boat capsized near Morocco’s coast on Jan. 15 while carrying 86 migrants, including 66 Pakistanis, according to migrant rights group Walking Borders.
Moroccan authorities said a day later 36 people were rescued from the vessel which left Mauritania on Jan. 2, while the Pakistani Foreign Office has said the survivors include 22 Pakistanis.
Sharif announced the launch of the task force at a meeting to review action against human traffickers, his office said, adding that the prime minister will himself head the task force.
“The arrests of members of groups involved in human trafficking should be expedited,” Sharif told officials at the meeting. “All institutions, including the Ministry of Foreign Affairs, should play their full role in identifying human traffickers.”
The Morocco tragedy has once again underscored the perilous journeys many migrants, including Pakistanis, embark on due to conflict and economic instability in their home countries.
In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank in international waters off the southwestern Greek town of Pylos, marking one of the deadliest boat disasters ever recorded in the Mediterranean Sea. More recently, five Pakistani nationals died in a shipwreck off the southern Greek island of Gavdos on Dec. 14.
The Pakistani government has ramped up efforts in recent months to combat human smugglers facilitating dangerous journeys for illegal immigrants to Europe, resulting in several arrests. PM Sharif has also urged increased collaboration with international agencies like Interpol to ensure swift action against human trafficking networks.
Officials informed participants of Friday’s meeting that so far, six organized human trafficking gangs have been identified, 12 cases have been registered, three key traffickers have been arrested, and 16 names have been placed on the passport control list. They were also apprised of the details of seizure of vehicles, bank accounts and assets.
“The murderers of humanity involved in human trafficking will be brought to justice,” Sharif said.
Parliament elects ex-PM Khan aide as head of accountability body amid Pakistan political tensions
- Pakistan parliament elects ex-PM Khan aide as head of accountability body amid political tensions
- Member of the government’s team criticizes Khan’s party for calling off the parleys, says differences can only be resolved through talks
ISLAMABAD: Pakistan’s National Assembly, the lower house of parliament, on Friday elected a member of former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) opposition party as the head of its accountability committee, amid prevailing political tensions in the South Asian country.
The Public Accounts Committee is among the most powerful parliamentary bodies in Pakistan and holds the authority to summon virtually any individual or record from government departments. Its main objective is to uphold transparency and accountability across all public and constitutional institutions, promoting financial integrity and good governance.
The development came a day after ex-PM Khan called off negotiations with the government over its failure to establish judicial commissions to investigate violence at anti-government protests organized by his party. The talks, which began last month after Khan threatened a civil-disobedience movement, aimed to ease political tensions, but have not yielded desired results after three rounds.
Khan’s ouster in a parliamentary no-trust vote in 2022 has plunged Pakistan into a political crisis, particularly since he was jailed in August 2023 on corruption and other charges. His PTI party has regularly held protests to demand his release, with many of the demonstrations turning violent. At the last meeting on Jan. 16, the PTI had given the government seven days to announce the truth commissions, a deadline that expired on Thursday.
But despite the government-opposition stalemate, Junaid Akbar Khan, a lawmaker from Khan’s PTI party, was elected on Friday unopposed as the head of the National Assembly’s Public Accounts Committee (PAC), according to a statement issued by the National Assembly Secretariat. The post of the PAC chairman had been vacant since the general election in Feb. last year.
“I will move forward taking all the [committee] members with me,” Junaid was quoted as saying by the National Assembly Secretariat, as committee members assured him of their support.
The announcement of Junaid’s election as PAC chairman came hours after the PTI refused to attend the next round of talks with the government on Jan. 28
The PTI’s demands to the government revolve around the release of all political prisoners including Khan, and the formation of two judicial commissions to probe into violent protest rallies, including one on May 9, 2023, when PTI supporters rampaged through military offices and installations, and a second one on Nov. 26, 2024 to demand Khan’s release, in which the government says four troops were killed.
Speaking to reporters in Islamabad, Senator Irfan Siddiqui, a member of the government’s negotiations team, criticized the PTI for calling off the parleys.
“Come out of this confusion, and come sit with us on the 28th,” he said in televised comments, referring to Khan’s party. “Whether the commission will be formed or not, it will be decided there.”
Pakistan stick with spin as they chase West Indies series sweep
- Pakistan completed a 127-run win inside three days in the opening Test, with spinners Sajid Khan taking nine wickets
- West Indies spinner Jomel Warrican also grabbed a career-best 7-32 as 34 of the 40 wickets in the match went to spinners
MULTAN: Head coach Aaqib Javed brushed aside criticism of Pakistan’s reliance on spin bowling as they seek a clean sweep against the West Indies in the second Test starting on Saturday.
Pakistan completed a 127-run win inside three days in the opening Test, with spinners Sajid Khan taking nine wickets, Noman Ali six and Abrar Ahmed five for their third straight win at home.
West Indies left-arm spinner Jomel Warrican also grabbed a career-best 7-32 as 34 of the 40 wickets in the match went to spinners.
The second Test will also be played on a dry and grassless pitch in the central city of Multan.
Former Pakistan players and analysts hit out at the spin-heavy strategy, saying the team would struggle on away tours where pitches may not be as conducive to spin.
Aaqib, a fast bowler from an era dominated by the great pacemen Wasim Akram and Waqar Younis, insisted the spin assault would continue.
“We found that the West Indies have a weakness in dealing with the spin bowling, so we exploited that and will do that again,” Aaqib told a news conference on Friday.
West Indies skipper Kraigg Brathwaite had no qualms about Pakistan’s tactics.
“Pakistan are playing at home and if they believe spinning pitches are their strength then that’s fine and that’s how cricket is played,” Brathwaite said.
“I have played on pitches which took turn from day one but not like this, which had cracks from day one,” he said.
West Indies will be without injured pace bowler Jayden Seales, who took three wickets in the first match and will be replaced by the experienced Kemar Roach.
Pakistan are unlikely to make any changes.
Brathwaite said his batters need more faith after the first Test, in which his team managed just 137 and 123 in their two innings, with Alick Athanaze the only one to reach a half century.
“It was a difficult pitch to bat in the last game,” Brathwaite said.
“I would say you need to believe in your plan from ball one and not think of the third or fourth ball.”
Pakistan are eighth and the West Indies ninth and last on the World Test Championship table.
Another victory in Multan could see the hosts rise to seventh.
Pakistan were forced to make radical changes last year after losing the first of three Tests against England, their 11th straight home Test without a win.
The Aaqib-led selection panel dropped out-of-form batter Babar Azam and rested pace spearheads Shaheen Shah Afridi and Naseem Shah.
The tactics worked on the spin-friendly pitches in Rawalpindi and Pakistan went on to win the series 2-1.
“If we had taken these decisions earlier we would have been in the race for World Test Championship final,” Aaqib said.
Two separatists lay down arms, accuse foreign agencies of interference in Pakistan’s Balochistan
- Balochistan, Pakistan’s largest province by landmass and rich in mineral resources, has for decades faced a low-level insurgency by Baloch separatist groups
- Pakistani officials have in the past blamed hostile agencies for fanning insurgency in Balochistan to disrupt China-led development projects in the region
ISLAMABAD: Two Baloch separatist militants on Friday announced their surrender to authorities in Pakistan’s restive Balochistan province, accusing foreign intelligence agencies of interfering in the region to “destabilize” the South Asian country.
Balochistan, Pakistan’s largest province by landmass and rich in mineral resources, has for decades faced a low-level insurgency by Baloch separatist groups, who accuse Islamabad of exploiting the province’s natural resources, such as gold and copper, while neglecting the local population.
Successive Pakistani governments have denied the allegations, saying they prioritized Balochistan’s development through investments in health, education and infrastructure projects, accusing hostile intelligence agencies of inciting the Baloch youth to violence in the region.
On Friday, top counter-terrorism officials in Balochistan held a press conference alongside two Baloch separatist militants, who announced laying down arms and quitting their fight against the Pakistani state. It was unclear under what circumstances the militants addressed the press conference and whether they spoke freely or under pressure from the authorities.
Najeeb Ullah, a former commander of the Baloch Republican Army (BRA) who hails from Balochistan’s Makran division, said he had fought for years against Pakistan, but it was a meeting with “intelligence officials of a neighboring country” that made him realize that they were only being used to “destabilize” Pakistan and not for Balochistan’s separation.
“I met intelligence officials of a neighboring country and I presented before them several suggestions to further our struggle [for Balochistan’s separation],” he told reporters in Quetta.
“But they rebuked me and said, ‘We have nothing to do with your freedom. We will support you [only] to destabilize Pakistan’.”
Ullah did not name any country, neither divulge more details about the meeting, but Pakistan has in the past accused India, Iran and Afghanistan of sheltering militants that operate in the region, an allegation denied by all three.
He criticized leaders of Baloch separatist outfits for living a “life of luxury” abroad and inciting Baloch youth to violence in the impoverished region.
He said he looked into Balochistan’s affairs more deeply after his meeting with foreign intelligence officials, which eventually led him to quit militancy.
“I reached this conclusion that all of our [separatists] organizations are playing in the hands of foreign countries who are using us to achieve their ulterior motives,” Ullah said.
Abdul Rashid, another militant who remained associated with various separatist outfits in Balochistan for 15 years, also announced his surrender at the press conference, speaking to reporters in the Balochi language as he could not speak Urdu.
Pakistani officials have in the past accused foreign agencies of fanning militancy in Balochistan to disrupt China-led development projects in the region.
China has pledged over $65 billion in infrastructure, energy and other projects in Pakistan under the China-Pakistan Economic Corridor (CPEC), part of President Xi Jinping’s Belt and Road Initiative.
Pakistan this month inaugurated a Chinese-funded airport in Balochistan’s Gwadar, while Beijing is also helping Pakistan develop a deep-water port close to the new airport, a joint venture between Pakistan, Oman and China that is close to completion.
Aitzaz Goraya, the deputy inspector-general of the Balochistan Counter-Terrorism Department (CTD), said the debriefing of the two former militants had made them aware of more things that could help their investigations.
“The role of hostile intelligence agencies, which we, the government, its institutions and the CTD, knew to quite an extent, some more names and people have been brought before us, who are involved in it and how they are being funded,” he said.
“This has given us more clarity in our investigations.”
Omani, Pakistani navies hold joint exercise to enhance interoperability
- Pakistan, Oman are maritime neighbors and hold frequent port calls, joint exercises and coordinated patrols
- During visit to Port Sultan Qaboos, Pakistan Navy officials discussed maritime cooperation with Omani counterparts
ISLAMABAD: Pakistani and Omani navies have conducted a joint exercise to enhance interoperability between the two forces, Pakistan Navy said on Friday, following a port call in Muscat by two Pakistan Navy ships.
Pakistan Navy’s Tabuk and Rah Naward ships visited Port Sultan Qaboos, where they were warmly received by Omani authorities, according to the Directorate General Public Relations (DGPR) of Pakistan Navy.
During the visit, Pakistani mission commander and commanding officers held meetings with Royal Navy of Oman’s director-general operations and plans, Maritime Security Center commander and commandant of the Said bin Sultan naval base.
“During these interactions, matters of mutual interest, Navy-to-Navy engagements, and cooperation in maritime security were discussed,” the DGPR said in a statement.
“Following the port call, PNS Tabuk conducted a passage exercise with a Royal Oman Navy ship Al Shamikh. The exercise at sea aimed to enhance interoperability between the two navies and promote shared learning through coordinated activities.”
Pakistan Navy ships were also opened for visitors, including ambassadors, diplomats and military attaches of various countries as well as a large number of Pakistani community members.
Pakistan and Oman are maritime neighbors and frequent visits of dignitaries, port calls by ships, joint exercises and coordinated patrols have been a regular feature of bilateral ties between the two countries.
“The visit of PNS Tabuk and Rah Naward will further strengthen bilateral relations between the two navies,” the DGPR added.
