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Controversy of Riko Diq Reserve for Gold Prices in Pakistan

 

Pakistan government did not interfered on the decision of the Australian company BHP Billiton sold its stake in the copper project of Riko Diq to a newly developed Tethyan Copper Company limited, which is an Australian company. This is the world’s largest copper reserve.

 

Pakistan government gave this contract to BHP Billiton in 1994 to discover copper and gold resources in Chagai range of Baloshictan that even involves Riko Diq. This place has the capacity to produce more than 500 million tonnes of copper every year. One of the best research shows that Riko DIq is one of the best and largest undeveloped copper plan with around 11 billion pounds of copper and 9 million ounces of gold.

 

The very obvious question is why the government did not interfere in this economic decision of transferring the stake to some new company. Pakistan has always been a hot spot for gold resources and therefore let the world’s biggest companies to move to the place for bidding for Riko Diq, but this doesn’t happen.

 

Today Tethyan owns 75% of stake in this copper reserve and the Balochistan government has only 25% of it. Moreover, the controversy deepens when it was observed that the government despite of knowing about the zero year experience in mining gave the contract. The company even doesn’t have stable financial strength to take such a huge project.

 

Only in just few months, Tethyan showed appearance of gold in the Riko Diq reserve and made headlines. Many complexities emerged as drilling only four holes in the reserve called H36 has shown great gold values. This made the Australian company’s shares to shoot up by 11% the same day.

 

These controversies are very complicated and not been solved until now. Despite the biggest organizations ready to interfere in the project, the stake was given to a newly formed company with just a year old background.

 

 

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