Minister for Energy Hammad Azhar on Tuesday said the Federal Cabinet had approved the extension of the Saindak Mine lease to the Chinese company, already working on the project.
“As per the newly negotiated agreement, the government of Pakistan’s share in profit has increased from 50:50 to 53:47 in Pakistan’s favor,” he said in a series of tweets.
He said royalty to the Balochistan government was also enhanced from 5 percent to 6.5 percent of sales revenue, besides “social uplift support to the government of Balochistan from 5% to 6.5% of net profit & increase in annual rent by up to 40% (indexed with price),” he added.
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The minister said the newly negotiated agreement was concluded in consultation with all the stakeholders including the provincial government.
Royalty to Govt of Balochistan enhanced from 5% to 6.5% of sales revenue. Social uplift support to GOB from 5% to 6.5% of net profit & increase in annual rent by up to 40% (indexed with price).
This agreement has been concluded in consultation with all stakeholders incl GOB.— Hammad Azhar (@Hammad_Azhar) February 15, 2022
In another tweet, Hammad said Pakistan Petroleum Limited (PPL) would be taking over the operation and working share from China Zenhua Oil in the Baska Block that spanned over 2500 square kilometers of area in Dera Ismail Khan, Dera Ghazi Khan, and Musa Khel area.
“The previous company was unable to carry out exploration for oil/gas in this terrain since 2007. PPL will do so now,” he added.
PPL will be taking over operation and working share from China Zenhua Oil in the Baska Block that covers 2500 sq kms in the DI Khan, DG Khan and Musa Khel area.
The previous company was unable to carry out exploration for oil/gas in this terrain since 2007. PPL will do so now.— Hammad Azhar (@Hammad_Azhar) February 15, 2022
The Saindak Copper-Gold Project
Earlier this month, the Economic Coordination Committee (ECC) allowed 15 years’ extension of lease contract between Saindak Metals Limited (SML) and Metallurgical Construction Corporation (MCC) China for the Saindak Copper-Gold Project.
Reportedly, SML is a public sector company owned by the government of Pakistan and is engaged in managing affairs of Saindak Copper-Gold Project in District Chagai, Balochistan.
The project was developed for local ore exploration, mining and processing to blister copper.
The Federal Government has invested more than Rs29.234 billion in the project and it has been declared an Export Processing Zone (EPZ) up till October 31, 2022.
Reportedly, the operations of the project were entrusted to a state-owned entity MCC China under a lease contract with SML on November 30, 2001, awarded through an international bidding process.
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Courtesy: APP with additional input by GVS