In a historic decision, the Supreme Court (SC) declared the Reko Diq revival agreement to be legal and the project can now move away from the controversy it has been embroiled in. The unanimous verdict was given after considering multiple factors that had led to the project coming to a standstill in 2011 and establishing that the reconstitution of the deal was in no way or form violating constitutional principles.
The Reko Diq agreement was officially signed back in 2006 but multiple barriers stood in the way of its implementation: the local government objected to Tethyan Copper’s lease renewal, the SC declared the agreement invalid in 2013 and by 2019, the World Bank imposed an $11 billion fine on Pakistan for failing to hold up its end of the deal. The matter was solved after the agreement was reconstituted to include the federal and Balochistan government, along with the Barrick Gold Corporation and three state-owned entities.
This process was completed keeping in mind the complex financial, technical and legal issues that plagued the deal and the SC did well to highlight that the increased level of transparency entails that there is little to worry about. Accordingly, what matters the most is that the deal is constitutional and that provincial governments have the right to amend laws pertaining to assets like minerals. An added source of comfort should be the fact that all stakeholders have pledged to uphold their civic and environmental responsibilities, thereby reducing the likelihood of exploitation taking place.
With all this, the state and Barrick Gold has been given the green light to begin mining. The immediacy with which this is needed cannot be overlooked. Balochistan has been fighting to gain some economic freedom to explore the potential that lies locked in the land and the Reko Diq project will bring immense returns. It will further open up employment opportunities for the locals. In a time when the province has been cash-strapped and struggling due to flood damages, this serves as an important source of revenue, provided mining finally begins.