Antofagasta-Barrick JV says mine license refusal breaches law, Pakistan

IRJ – November 18 – The rejection of a mining license application posted by Antofagasta PLC and Barrick Gold Corporation joint venture Tethyan Copper Company (TCC) has breached Pakistan law, the partner vehicle says in statement, Friday.

The application lodged for Tethyan’s planned Reko Diq copper-gold project was rejected by the Balochistan Mining Committee in a “summary decision” earlier on in the week beginning November 14. Just last month, the company filed a notice of dispute when local leaders refused to meet with the group or provide a timescale for Tethyan to respond to objections previously raised against the proposal.

“The Licensing Authority's summary refusal to grant the Mining Licence to which TCC (Tethyan) is entitled breaches not only the Baluchistan Mineral Rules (2002), but also TCC's rights under the Chagai Hills Exploration Joint Venture Agreement (CHEJVA) and Pakistani law,” the company statement reads.

The report of refusal lodged and announced by Advocate General of Balochistan Amanullah Kanran states that the feasibility report put forward by Tethyan was incomplete. Carried out by SNC-Lavalin, the study work cost around $220 million and took between three and four years to complete, according to province officials speaking to press. On Wednesday, Chilean copper giant Antofagasta said that “Tethyan strongly believes that the Reko Diq project can contribute significantly to the development of a modern mining industry in Balochistan and will consider its options for a further course of action.”

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