Western Gold Mining Giants Plunder Pakistan's Balochistan, as Locals Live in Poverty
17:55 23.01.2024 (Updated: 17:56 23.01.2024)
© AP Photo / Naseem James
Subscribe
Pakistan's resource-rich but poorest province, Balochistan, is home to Canada's Barrick Gold and Australia's BHP Billiton that rake in millions from mining there while the local population remains trapped in poverty: despite having gas fields practically beneath their feet, the Balochs are deprived of even basic access to this fuel in their homes.
Discontent is growing in Balochistan, Pakistan, as the residents near the Reko-Diq and Saindak gold and copper mines feel marginalized from the wealth being extracted from the area.
In addition to these mining projects, back in 1953, Pakistan discovered a gas field in Balochistan known as Sui, but people of the same land is deprived of it.
Reko-Diq: The Copper & Gold Mine Project
The Reko Diq Mine, located near Reko Diq town in Chagi District Balochistan, Pakistan, holds one of the world's largest copper and gold reserves.
With estimated reserves of 5.9 billion tonnes of ore grading 0.41% copper and 41.5 million oz of gold, it has a mining life of at least 40 years.
In 1993, the government of Balochistan entered into a Joint Venture Agreement (JVA) with American Company Broken Hill Properties Minerals (BHPM) to explore and mine the area. Since then, various international companies, including Australian company ‘Tethyan Copper Company Pvt. Ltd.’ and Barrick Gold of Canadian company; have been involved in extracting these natural resources from Balochistan.
In 2023, Mark Bristow, Barrick Gold Corporation's CEO has announced that the company aims to begin production at the massive copper-gold mine in Reko Diq, Balochistan, by 2028.
During the Barrick, annual shareholder meetings in Canada, last year 2023, Canadian-based Baloch human rights defender Lateef Johar from Balochistan questioned the CEO and Barrick's new Reko Diq mining agreements, alleging human rights abuse. But Mark Bristow, Chief Executive officer responded with an insulting and racist tirade, using Lateef's asylum status to discredit and undermine him, instead of addressing his concerns.
Western Firms Exploit Resources, Leaving Baloch People to Bear the Costs of Their Plunder
Sputnik managed to get comments from exiled activist Lateef Johar, who revealed that “not only Western companies, but also regional firms, are involved in extracting natural resources in Balochistan without taking the local people on board. Even the regional government of Balochistan is unaware of the full extent of these activities. There is a strong influence of Western companies on the Pakistani government's decision-making regarding mining agreements.”
“Western companies exploit resources, leaving the people to bear the environmental and social consequences. The fear of instability drives rapid resource extraction, and those who speak out face pressure and intimidation.”
However, as per official report, Barrick Gold has made the first payment of $3million to Balochistan government, as part of the Reko Diq partnership.
East India Company's Heritage in Pakistan
Dr Taimur Rahman, Secretary-General of the Mazdoor Kisan Party (MKP), pointed to the historical role of the East India Company that arrived in 18th century India and used to exploit the entire Indian subcontinent. Drawing parallels, he emphasized that similar exploitative practices are being carried out by foreign companies in Pakistan: “These companies extract resources from third world countries, leaving them in crisis, thus perpetuating a form of capital imperialism.”
“As a less affluent country, Pakistan is caught in this exploitative cycle. The Reko Diq case exemplifies the predatory nature of these companies and exposes the fundamental flaws of a neoliberal development model that is heavily reliant on foreign capital,” Dr. Rahman, who is a Marxist, said.
Pakistan suffered losses in the initial stages of this project due to hasty and unfavorable agreements. In other words, neither Pakistan nor the Baloch people reaped any benefits or profits from Reko Diq.
Saindak Copper Gold Project
Saindak Copper-Gold Mine is located near Saindak town in Chagai District of Balochistan, Pakistan. The discovery of copper deposits at Saindak was made in the 1970s in collaboration with a Chinese engineering firm.
The Saindak Copper-Gold Project was set up by Saindak Metals Ltd, a company fully owned by the Government of Pakistan, by the end of 1995 at a cost of PKR 13.5 billion.
A formal contract worth $350 million for the mine's development was signed between Pakistan and China, granting a 10-year lease to the Metallurgical Corporation of China Ltd. (MCC), a subsidiary of China Metallurgical Group Corporation.
The agreement stipulated that 50% of revenues from the mine would go to MCC, 48% to the Government of Pakistan, and 2% to the Balochistan provincial government.
"The reality of the benefits of these extraction projects and mining activities is quite different. In regions where mining and extraction are taking place, the local population is experiencing climate changes, drought including temperature fluctuations and agricultural soil erosion due to these projects. This has led to the people of Chaghi district being forced to abandon their homes due to the impact of climate changes and the resulting decline in agricultural productivity," a former Provincial Minister of that area told Sputnik on condition of anonymity.
“The people of Balochistan are facing are compelled to live under the burden of absolute poverty, high illiteracy, and unemployment, the core reasons are these western companies,” he underlined.
Do Colonial Practices Still Live On in Balochistan?
Irony is that despite all of these copper, gold mines and mega projects in Balochistan, which have been giving billions to the companies and states since decades, people of land and owner of the resources are not getting any of it.
“The Western company-oriented projects, such as Reko Diq, are not yet fully operational, with a planned start in 2027. The main hurdle for these projects is the conflict between the provincial and federal authorities, stemming from long-standing misunderstandings. So we cannot estimate the implication right now,” Adnan Aamir, analyst and journalist at Nikkei Asia told Sputnik, adding that Balochistan's problems are not solely tied to these projects, but are rooted in a “complex history of deprivation and suffering”, and highlight “flaws in Pakistan's federal system.”
In 2023, Mr. Shahzaib Kamal Advocate, President of District Bar Association Hub Balochistan, and Central Organizer of National Democratic Party, filed a petition in the High Court of Balochistan about the grievances of Baloch people, mal-practices and corruption in these mega projects, but his petition was rejected last week.
In the petition, he and his legal team requested the country’s court to take action against unconstitutional practices by western companies in Balochistan for failing to share information about their gold mining projects and activities with the general public.
Speaking to Sputnik, Shahzaib Kamal said that the “local and indigenous people have concerns about the Reko-Diq projects because public is still unaware of the details, including who is involved, the distribution of benefits, or shares, and the main beneficiaries of these projects. People of the province are still compelled to live in poverty and miseries.”
“Colonial practices are still ongoing in Balochistan, such as the occupation of lands and confiscation of property. These actions are carried out to facilitate foreign companies in extracting natural resources, while disregarding the welfare of the local population,” he added.
