An illustration of student-teacher collaborative discussion model in the subject of Media & Current Affairs during the Fall session 2020, Students engaged in the discussion on Reko Diq Case
Measures of Central Tendency: Mean, Median and Mode
Reko diq : Media & Current Affairs : Student Collaboration
1. REKO DIQ CASE
HISTORICAL AND RESEARCH
BASED ANALYSIS
Course Instructor: Mr. Ali Haider Saeed
Collaborator: M. Umar Bilal
2. 2
TABLE OF CONTENT..
• What is Reko Diq.
• Historical Background.
• CHEJVA
• TETHYAN COPPER COMPANY (TCC)
• Stance of federal government
• Verdict of Supreme Court
• ICSID
• Final decision.
• Stay on fine by Pakistan.
3. 3
WHAT IS REKO DIQ
3
• Reko Diq is basically a mine, located near Reko
Diq town in Chagai District, Balochistan.
• 5th largest copper and gold mines in the world located
in the south west part of Pakistan.
• Having estimated reserves of 5.9 billion tonnes of ore
copper and gold reserves amounting to 41.5 million
oz.
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REKO DIQ CASE
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• On 12th July 2019, ICSID ordered the government of
Pakistan to pay $5.9 billion in damages to TCC over
the rejection of mining lease for a project in
Baluchistan.
• The ICSID awarded a $4.08bn penalty and $1.87bn in
interest. This was the largest fine ever levied against
Pakistan by int. court and the 2nd largest fine in the
history of ICSID.
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CHEJVA
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CHEJVA:
• The story of reko diq begins in 1993 when the
Baluchistan development authority signed an
agreement with the American based mining firm
Broken Hill proprietary (BHP) minerals known as the
Chagai Hills Join Venture Agreement or CHEJVA.
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0
CHEJVA
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• It’s key features were a 75% stake for BHP in the
venture with 25% held by Baluchistan government.
• Till 2000, BHP had not made any progress in the
project and sold its stake to Australian mining
company “Tethyan copper company in 2006.
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1
TETHYAN COPPER COMPANY (TCC)
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• The new owners then signed an updated, modified
version of the CHEJVA with the government of
Balushistan in 2006.
• It’s key features were a 80% stake for TCC in the
venture with 20% held by Pakistan.
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2
Baluchistan High Court
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• MNA of jamate islami maulana abdul haq baluch filed
a petition claiming that the agreement was illegal and
corrupt and hence should be annulled.
• Baluchistan high court dismissed the petition and by
the time the appeal against the decision made it to
the Supreme Court.
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3
Stance of Federal Government
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• Federal government set up its own Reko diq mining
committee chaired by Dr samar mubarakmand, a
prominent nuclear scientist
• Dr. Samar mubarak had given testimony that the
mines at reko diq were worth hundreds of billions of
dollars, and could be easily extracted with his
expertise.
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4
TETHYAN COPPER COMPANY (TCC)
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• And so by 2010, when TCC submitted its feasibility
study along with the application for a mining license,
Baluchistan government firstly agreed but then in
November 2011, Baluchistan government rejected
mining application by Tethyan copper company.
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5
Supreme Court
15
• On 7th jaunary 2013, Supreme Court headed by chief
justice iftikhar chaudhary, gave the decision,
annulled/removed the CHEJVA on the basis of
corruption and violation of mining rules in the signing
of initial agreement in 1993.
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7
TETHYAN COPPER COMPANY (TCC)
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• According section 15.4.1 of CHEJVA, the Supreme
Court of Pakistan did not have the authority to be the
final decision maker in this case.
• After 13 days of rejection of the application, TCC filed
for damages at ICSID.
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8
ICSID
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• ICSID: International Centre for Settlement of
Investment Disputes, is an international
arbitration institution established in 1966 for
legal dispute resolution and conciliation between
international investors and States.
• The ICSID is part of and funded by the World Bank
Group, headquartered in Washington.
• It is an autonomous body to encourage international
flow of investment.
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ICSID
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• The case between the Pakistani government and the
international company continued for at least seven
years. The management of the Tethyan Copper
Company (TCC) had claimed $11.43bn in damages.
• Klaus Sachs of Germany headed the tribunal while
Stanimir Alexandrov of Bulgaria represented the
claimants and Leonard Hoffmann of United Kingdom
represented Pakistan.
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Verdict by ICSID
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• 6 years later, on 14 July 2019 ICSID ruled in favor of
TCC, it determind that Pakistan owed TCC $5.9 billion
in damages. ICISD rendered its judgement on a 700-
page ruling against Pakistan.
• In November 2019, Pakistan challenged the decision
and initiated proceedings seeking its annulment.
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ICSID
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• On 16th September the World Bank’s ICSID has
granted a stay on the enforcement of a penalty
awarded against Pakistan in the Reko Diq mining
lease dispute. The next hearing of the case will be on
21st may 2021.
• According to attorney General office” “This is a
success for Pakistan and its legal team, Pakistan will
fight again and try best to annulment the decision
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Tethyan’s stance
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• Tethyan board chair William Hayes said in a statement
the company was still “willing to strike a deal with
Pakistan, but added that “it would continue
protecting its commercial and legal interests until the
dispute was over.”
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Dr. Mubarakmand’s initiative?
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• After spending 1.6 billion rupees and achieving
virtually nothing the project shut down in 2015.
• Dr Mubarakmand now faces NAB charges in a
separate Thar Coal project where he made similarly
tall claims but was unable to deliver.