The Reko Diq Project
The Reko Diq Project
   
The Reko Diq Project

TCC Reko Diq Project – Largest ever single Foreign Direct Investment mining project in Pakistan

The Reko Diq Mining Project is a US$ 3.3 billion capital investment project that promises to build and operate a world class copper-gold open-pit mine at Reko Diq in the northwest district Chagai of Balochistan province in Pakistan.

TCC completed an extensive and detailed bankable feasibility study establishing the basis for mine development at Reko Diq during August 2010 and submitted a Mining Lease Application in February 2011, along with an Environmental and Social Impact Assessment (ESIA) report. Progress on the project came to a standstill in November 2011, when the Government of Balochistan summarily rejected the application by TCC's local operating subsidiary, Tethyan Copper Company Pakistan (Private) Limited (“TCCP”), for a mining lease in respect of Reko Diq. TCC believes that, under the Chagai Hills Joint Venture Agreement (“CHEJVA”) between TCC and the Government of Balochistan, as well as under the Balochistan Mineral Rules 2002, TCCP was legally entitled to the mining lease subject only to “routine” government requirements.

In order to protect its legal rights, in November 2011 TCC commenced international arbitration proceedings at two forums: one against the Government of Pakistan with the International Centre for Settlement of Investment Disputes, asserting breaches of the Bilateral Investment Treaty between Australia (where TCC is incorporated) and Pakistan, and another against the Government of Balochistan with the International Chamber of Commerce, asserting breaches of the CHEJVA.

Despite the initiation of arbitral proceedings in order to protect its rights, TCC remains hopeful of an opportunity to reach a negotiated resolution to the case. It is TCC’s position that a negotiated grant of the lease would provide the best outcome for the Company and the people of Balochistan and Pakistan as a whole.
   

The initial mine development plan envisages that in the processing plant about 110,000 tons of ore per day will be processed through flotation process and a 680 km concentrate pipeline will transport the product from the mine site to the port of Gwadar to a dedicated marine terminal facility at the port for storage and transfer of to shipping vessels for supply to smelters throughout the world. In order to secure optimal economies of scale efficiencies, lower mining and processing unit costs, a large scale mining and processing project is required.

The proposed processing plant will produce approximately 600,000 tons of copper concentrate a year, which will contain 28-31% copper and 7-22 g/ton gold which translates to about 200,000 tons copper and 250,000 ounces of gold per year. The commercial mining operations are anticipated to last for over 56 years with an estimated annual operating expense of about US$ 400 million of which 45%-50% will be spent nationally.

TCC is committed to the development of a mining initiative that has the potential to cause the transformation of Balochistan’s dormant mineral resources into profitable mineral reserves. The project offers the scale to significantly contribute to the uplift of the local people and strengthen the economy in general by generating long term revenues in the form of royalties, taxes, profit-sharing and employment opportunities. The project stakeholders including the Government of Balochistan and the Government of Pakistan shall be able to add significantly to their provincial and federal treasuries in order to undertake wider development projects in the best interest of the general masses. As soon as the TCC Reko Diq project goes into development, it will become a beacon for further investment into exploration and mining sectors in Balochistan and Pakistan in general. 

 

Reko Diq Location
Reko Diq is a remote desert location in the sparsely populated north-western district Chagai of Balochistan. It's significance comes from it's location on the Tethyan Magmatic Belt which is widely known for its copper-gold resources.
 

Reko Diq Resource
The deposit at Reko Diq is a large low grade copper porphyry. The mineral resource at Reko Diq is estimated at 5.9 billion tons with an average grade of 0.41% copper and 0.22 grams/ton gold. An estimated annual production of 200,000 tons of copper and 250,000 ounces of gold shall be achieved by processing 600,000 tons of concentrate every year.
 

Mining Project
This is a US$ 3.3 billion capital investment project with 56 years of mine life. Find out what will it take in terms of resources, technology, manpower and infrastructure to make it a commercially successful project.
 


About Mining
Mining is a highly specialized, large scale, technically complex, technologically intensive and long-term business venture. This section shares basic information about the mining process proposed for Reko Diq and general mining knowledge.
Quick Information
Joint Venture company of Antofagasta PLC and Barrick Gold.

Developing Reko Diq copper-gold project, district Chagai, Balochistan in Pakistan.

Spent over US$ 220 million since 2006 on exploration & technical studies.

Initial investment of US$ 3.3 billion required.

Largest single FDI in Pakistan's mining sector.

The first world class large scale mining project in Pakistan.

Partnership with the Government of Balochistan.
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