News
Saturday, November 17, 2012
Reko Diq case : SC cautions govt against adverse int’l arbitration* Balochistan advocate general submits record pertaining to lease
* Court directs all parties to assist it under which law Reko Diq agreement was challenged at international forum
Staff Report
ISLAMABAD: The Supreme Court on Friday said the government would be responsible if the International Centre for Settlement of Investment Disputes (ICSID) announced an adverse verdict on a dispute between Pakistan and the Tethyan Copper Company-Australia (TCCA) over Reko Diq mining lease.
A three-member bench, headed by Chief Justice of Pakistan Iftikhar Muhammad Chaudhry, was hearing application filed by Raza Kazim, on behalf of Abdul Haque Baloch, Former Jamaat-e-Islami lawmaker, under Order V, Rule 2(8) read with Order XXXIII, Rule 6 of the Supreme Court of Pakistan Rules 1980 for permission to raise additional grounds and for placing additional documents on record regarding leasing of Reko Diq gold and copper mines in Balochistan to foreign exploration and mining companies in violation of law.
The court has categorically observed that it would seek satisfactory explanation from the parties of the case as to how and under what law TCC was given mining rights in Pakistan.
The CJP asked that what provoked the TCC to approach ICSID Tribunal if the agreement was transparent and legal.
Balochistan Advocate General Amanullah Kinrani submitted documentary record pertaining to the Reko Diq lease, saying that the agreement of the provincial government with BHP Minerals Intermediate Exploration was signed only for search of the mineral resource.
He informed the bench that ICSID had clearly questioned during the hearing that who would be responsible to pay compensation to the TCC in case the tribunal declares the contract null and void.
Upon this, the court directed all the parties to assist the court under which law the Reko Diq agreement was challenged at an international forum with the objective for mediation during next hearing. Raza Kazim argued that Chagai Hill Exploration Joint Venture Agreement (CHEJVA) was tainted with corruption, adding that the agreement was for a limited purpose, signed in 1993, for the exploration purpose.
He said the treaty is between Pakistan and Australian government and they are the real party, but in this case TCCA is only investor. He said that the Foreign Office should not have given a 40-page reply in response to the Australian High Commissioner statement. The CJP inquired from him that the Foreign Office instead of approaching the ICSID should have come to the Supreme Court for the resolution of the case, which had not done? Kazam replied in affirmation. He pleaded that if the investment is found to be defective, for any reason, under Pakistani law then it ceases.
Kazim requested the court to exercise its full constitutional authority in deciding and defining Pakistan’s sovereignty and pass all necessary orders to give practical and conclusive effect to its decisions in the case. He also said that the people of Balochistan and Pakistan were not given correct information relating to actual amount of copper and gold discovered in Reko Diq. Later, the court adjourned the hearing of the case until November 19.
Courtesy www.dailytimes.com.pk