Quetta: The Balochistan and Federal governments on Thursday (December 15) have signed an agreement with the Canadian company Barrick Gold to resume mining activities at Reko Diq, news sources reported.
Read: Govt signs agreement with Barrick Gold for Reko Diq mining rights
The agreement has taken effect from December 16, nullifying the USD 6.5 billion penalty imposed by an international arbitration court. Representatives of Barrick Gold Corporation and the Federal and Balochistan governments signed the historic agreement at a ceremony attended by senior officials. Under the agreement, Barrick will receive 50% of the proceeds from the Reko Diq mining site, while 25% will be shared among three Federal state-owned enterprises. Balochistan will receive 15% on a fully funded basis and 10% on a free carried basis.
Read: Cabinet approves signing of Reko Diq deal
Reko Diq is one of the largest undeveloped copper-gold projects in the world. The project was first awarded to Tethyan Copper Company Pty Limited but was later squashed by the Supreme Court. However, the new agreement has been endorsed by the Supreme Court, thus paving the way for Barrick Gold to immediately start work on the project.