By Ajay Kaul
New Delhi, Aug 29 (NVI) Notwithstanding strong opposition by the local Baloch people, Pakistan’s Reko Diq Mining Company is pushing ahead with Copper mining in occupied Balochistan and is raising hundreds of millions of dollars through loans from various international agencies and countries.
The company has recently managed 400 million dollars from the Asian Development Bank (ADB) and 450 million dollars from the International Finance Corporation (IFC).
It has now made a formal request for a loan of 100 million dollars to the Export-Import (EXIM) Bank of the US.
The mine project, having 50% investment from Canada-based mining giant Barrick Gold Corporation, and 25 per cent each by the Governments of Pakistan and Balochistan, is being strongly opposed by the local Baloch people who see it as a tool of exploitation of the occupied region’s resources.
The project is also seen as a means of enriching the Pakistani Army Generals, who directly or indirectly control such major projects which are ostensibly commercial in nature.
The projected is estimated to cost 6.6 billion dollars.
The US EXIM Bank has said that Reko Diq Mining Company has applied for “long-term loans or financial guarantees in excess of $100 million” and sought comments on it within 26 days, following which its Board of Directors will take the final call.
In its application, the company has said the loan amount would be utilised to finance the import of equipment for the development of the mine, including trucks, crushers, solar panels, and other machinery, along with consultancy services from the US.
The company has identified seven suppliers with facilities across the US, including Caterpillar, First Solar, Komatsu, and Wabtec.
Earlier, on August 22, the ADB Board of Directors authorised a loan of 300 million dollars to Reko Diq Mining Company, and 150 million dollars as partial credit guarantee to cover the Balochistan government’s equity component.
“Financing for the project will be the largest foreign direct investment in Pakistan’s history,” the ADB said in a press release.
Prior to that in June, the IFC’s Board approved a loan of 450 million dollars as part of a proposed financing package totalling 700 million dollars for the Reko Diq mine’s development.
The ADB expects the Reko Diq mine to start production in late 2028.
The project has been opposed and viewed with concern by the local Baloch people because of the fear of poisoning and other health hazards.
Even the Supreme Court of Pakistan has voiced concerns over the project because of fers of respiratory illnesses and other chronic diseases to humans and animals. (NVI)
