Govt moves to attract investors under SIFC

Will hold Pakistan Mineral Summit on Aug 1; ministers, ambassadors, investors from world over to be in attendance

ISLAMABAD:

The incumbent government, under the Special Investment Facilitation Council (SIFC), is all set to hold a Pakistan Mineral Summit regarding Reko Diq and other mines and mineral projects on Aug 1 and has invited investors from all over the world, especially the United Arab Emirates, Saudi Arabia and other countries, to attend it.

Ministers as well as ambassadors from other countries will also be in attendance.

Barrick Gold Corporation President and Chief Executive Mark Bristow said, “I am working with the government of Pakistan and Balochistan on joint investment promotion and projects. It is a land rich in treasures and minerals.”
Bristow said, “Under the Reko Diq project, domestic and foreign investment in Pakistan, especially in Balochistan, will be greatly promoted.”

Government Holdings (Private) Limited Managing Director Masood Nabi said, “Pakistan's minerals are not only abundant but also attractive for foreign investment in the country.”

Therefore, Nabi said, “we are going to organise a historic mineral summit, which will be a very good platform for the promotion of domestic and international investors, in which discussions related to mineral resources will also be held”.

Ali Ehsan, the country manager of Reko Diq Mining Company, said, "The government of Pakistan is going to organise Pakistan Mineral Summit on Aug 1. This is the first summit organised by SIFC in which we have full cooperation."

Minister of State for Petroleum Senator Musadik Malik also confirmed that the government was holding a summit on Aug 1 in Islamabad on the “importance of minerals and their promotion”.

Malik said, “A silent revolution is coming in the world. And this revolution is closely related to rare minerals and deposits.”

Earlier in Jan on project financing, CEO Bristow said that leading financial institutions had indicated that they would finance the project, which would require $7 billion.

Of the total, $4 billion will be needed in first phase whereas $3 billion will be injected in the second one. Fifty per cent of funding will be arranged through equity whereas the remaining 50% will be debt.

Pakistan’s government has granted 15-year tax exemption to the project. However, Bristow added that they would pay royalty to Balochistan and invest in local community to execute different water and educational projects.

According to a statement, Reko Diq will be operated by Barrick Gold, which owns 50% of the project, with Balochistan holding 25% shareholding and three Pakistani state-owned enterprises sharing the remaining 25%.
The shareholding structure is in line with Barrick’s policy of benefit-sharing partnerships with its host countries.

As part of a three-day project review that began in Quetta, Bristow, accompanied by senior Barrick executives, met with Balochistan Chief Minister Abdul Quddus Bizenjo and other provincial leaders.

He briefed them on the extensive social and economic development opportunities that would be generated by the mine, which was expected to have a life of at least 40 years.

After the meeting, Bristow and Balochistan chief minister signed a memorandum of agreement, which specified a timetable for the disbursement of committed funds to the province, including advance royalty and social development financing.

It will ensure that the people of Balochistan start reaping benefits of the project well before the mine goes into production. The agreement provides for an initial payment of $3 million this month.

Barrick is working to set up community development committees to identify priority projects focused on food security, environmental management and access to education, healthcare and potable water.