Chinese investors threaten to move capital from KP to Balochistan

Zahir Shah Sherazi Published April 16, 2014

PESHAWAR: Expressing lack of confidence in the KP provincial government, a representative of a group of Chinese investors threatened to shift their mining projects from KP to Balochistan.

The representative has also alleged that Ziauddin Afridi, an advisor of Chief Minister KP Pervaiz Khattak on Mines, was causing hindrances in the ventures.

Speaking at a press conference at the Peshawar Press Club, the representative of Chinese Investors Joint Venture, Fu QuinFeng, said the joint venture had been working in Pakistan for the past 17 years.

He added that it had been nine months that the KP government had not been providing the investors he was representing with a license.

Afridi, who advises Chief Minister Khattak on Minerals, has been creating roadblocks in the way of obtaining a license which was why the investors were interested in taking his business to Balochistan instead, it was alleged.

Fu QuinFeng has also demanded that Pakistan Tehreek-i-Insaaf (PTI) chairman Imran Khan take notice of the matter.

He said that despite getting reassurances from KP Chief Minister during a meeting held on March 24th to settle the issue, Ziaullah Afrridi refused to meet and resolve the issue and hence the investors decided to move to Balochistan and withdraw their investment from Khyber Pakhtunkhwa.

QuinFeng said that "because of a lot of pressure and threats from Mr Zia Ullah Afridi, the most powerful government officer in KP, our Chinese investors would have to stop all mining projects, dismiss thousands of Pakistani workers, accept losing huge investments made in KP and go to Balochistan for further mining works.

He said that Mr Ziaullah after taking charge had cancelled all the leases, stopped the companies from working without any reason and had directed the firms not to supply extracted antimony ore to China vide letter no 2957 issued by director general Mines and Mineral Department on March 10, 2014.

He further said that despite the rules to decide on our application in 90 days, no decision has been made even after the passage of four months and added that when the issue was brought to the notice of the PTI leadership, Mr Ziaullah threatened to cancel all leases.

On the other hand, Advisor to the Chief Minister on Mines, Ziaullah Afridi said that that the firm had requested for mining license but they were given a license for Exploration which was against the procedures and inquiry is being conducted against the responsible officers, also the firm carried out illegal minining and export to China.

He also claimed that the firms involved in this regard had not fullfilled the legal formalities

Afridi said that the Instead of sending samples the firm exported above 500 tons of ore to China and sold it out, which was a violation of Rule 20 B of Mining MCR.

He further said that the department have also served notices on the concerned firm and if its reply is found unsatisfactory, the lease will be cancelled ,

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Pakistan

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Ahmad noor

Apr 16, 2014 07:21pm

Although china is our friend, but not all chinese firms do business with transparent and clean procedure. I agree with the inquiry, the only objection could be the time it has taken. I don't agree with the headline which seems to malign the KPK government.

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Taimoor Khan

Apr 16, 2014 07:31pm

It seems the Chinese are taking away Pakistani mineral wealth for their own good. Pakistan must ensure that it should avoid any foreign company in the business of mineral extraction and its processing because at the end of the day, these minerals are national wealth. They should not be taken away from Pakistan under any pretext.

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JKN

Apr 16, 2014 07:52pm

Resurgence of Mr. 10% or may be more- We had one from Sindh, now one from KPK.

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Ahmed Mujtaba

Apr 16, 2014 08:11pm

Yeah better go and loot Balochistan like you have been looting Pakistan for 17 years. Giving only 2 percent royalty in rikodiq to Balochistan. KPK's new mining policy require at least 20 percent share of provincial govt. Either give due share or leave.

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Sayyar Khan

Apr 16, 2014 08:31pm

Chinese companies have been mining and destroying countries all over. Good step by KPK Govt to keep a tight leash on them.

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Tanvir

Apr 16, 2014 09:01pm

Our negotiators are famous for giving lucarative terms to attract foreign investments specially from China. If we want to learn, we should study Contracts awarded by India to foreign companies. It is made 100% to favour India. Through foreign firms profits should be there but plunder should be stopped. I admire KPK govt. as they are working and creating a system to block all forms of looting and plunder. Since this a major shift compared to practices of the past, Chinese firm is a bit taken back and is surprised. Ignore their threates.

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Laing

Apr 16, 2014 09:12pm

@Ahmad noor: Can't agree more. I am a Chinese journalist majoring on economic matters to be dispatched to Islamabad. I totally agree with any lawful measures taken by Pakistani government against unlawful business activities. This case aside, Any unlawful business activities shall be treated as stain on the China Pakistan relationship thus wiped out of it, not protected by it. Inshalla.

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AJamal

Apr 16, 2014 09:23pm

Looks like these thugs had way during PPP-ANP times and wanted that to continue.

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monpassant

Apr 16, 2014 09:29pm

KP government must clarify its position on the issue

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Ahmer

Apr 16, 2014 09:44pm

Though China is a close friend but our national wealth is no less dear to us. Removing 500 tons of our ore in connivance with low ranking officials and without a licence or permission from apprpriate authority is nothing but smuggling if not theft. Nothing should be exported out of the country by land route.

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usama

Apr 16, 2014 10:09pm

The inquiry should take its course and the company should be penalized and blacklisted if proven guilty

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Imran Siddiqui

Apr 16, 2014 10:10pm

Full support for Mr. Afridi, he is right. We can't allow investors to break the laws just because they are investors. There will be more investors insha-Allah for KPK and Pakistan if we ensure transparency.

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Nasir

Apr 16, 2014 10:25pm

It will be the smartest decision ever to move the Capital to Baluchistan. KP is the waste of time for anything. Only drones should be send there.............

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Last Word

Apr 16, 2014 11:04pm

The Chinese are really taking undue advantage of Pakistan's hospitality and have been fleecing this country for many a decades. The Chinese sold poor quality railway locomotives which are now lying in the graveyard and obsolete JF-17 Thunder or Blunder which cannot match Indian jets and lying unsold as well. The business-minded Chinese would now fleece Pakistan of its precious minerals and give back practically nothing in return besides dictating unsuitable terms.

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Salma

Apr 16, 2014 11:19pm

We don't know what the real story and the whole truth is but our Chinese friends should not take advantage of our friendship and should not do something which can strain our cordial bond. We should also discourge the media which creates wrong news headlines and do a biased journalism to score against PTI.

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Shahpur

Apr 17, 2014 12:18am

@monpassant: KPK Officials should also have a Press Conference at Peshawar Press Club, supported by documentation, in response to the allegations.

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sajid ali

Apr 17, 2014 12:19am

Churchill once said, "there are no permanent friends nor perpetual enemies, the only thing which is permanent and perpetual is your interest"

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Zee

Apr 17, 2014 12:21am

@JKN: And many from Punjab as they have been running the country since inception.

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Omar

Apr 17, 2014 12:25am

Good job KP govt.

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Zee

Apr 17, 2014 12:26am

Chinese are getting all contracts of power plants, roads and many and they more corrupt compare. They are looting Pakistan and if not stopped they destroy Pakistan and will get away with it. Good work KPK govt keep it up we are with you.

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najib khan

Apr 17, 2014 12:43am

@Nasir: Your comments are an indication of some mishaps done to you by a pakhtoon, I presume! If that's the case, then accept my apology, and stop living in that horror, please!

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Zak

Apr 17, 2014 12:53am

We lost the Disney contract and now these Chinese. What's going wrong. Is corruption so embedded. Imran khan please clean up inside the offices.

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@expat

Apr 17, 2014 12:54am

A political blackmail attempt by a Chinese company? This company should be investigated for its unprofessional conduct and should be black listed.

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Apr 17, 2014 01:07am

I have personal experience of working with Chinese. They usually hide things and try to take advantage in every matter. All Chinese companies operating in Pakistan employees only Chinese at officer grade. Be it civil infra development company or telecom company. I think Pakistanis should understand reality before its too late,,,,

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Riaz

Apr 17, 2014 04:08am

@Laing: Welcome to Pakistan ! These unlawful and illegal activities polluted your country and now it's Pakistan turn. Holding a press conference doesn't make you any good. I hope that the KPK government is sensible enough to deal with this problem because such things are national assets. These cruel firms should not be permitted who loot, exploit, pollute and then disappear.

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String theory

Apr 17, 2014 04:15am

THat one thing Pakistan must understand that , Pak dont have fine or sophisticated mining technology. Only few countries in world have that technology including Australia , Canada , USA and some how china. And these countries are eating all world resources by going and exploring them. As Pakistan dont have mining technology therefore we could not explore Thar coal and rikodeck gold mines. And if we give that places to foreign investors they will do plunder as Canadian agreement with Baluchistan shows , That we are lucky Baluchistan has unrest and these companies could not start mining there or sorry I mean plundering . .. What Pakistan can do is to invest in mining engineering it is hard sciences and need very talented engineers but trust that is the only way as our neighbor Afghanistan has also lot mines, therefore Pakistan should built Mining engineering college as soon as possible to tap these resources. Just plz try to grab the issue we dont have mining technology

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Moby

Apr 17, 2014 04:22am

Quote 1: According to statistics from the US Geological Survey (USGS), current global reserves of antimony will be depleted in 13 years. However, the United States Geological Survey expects more resources will be found. Quote 2: Antimony was ranked first in a Risk List published by the British Geological Survey in the second half 2011. The list provides an indication of the relative risk to the supply of chemical elements or element groups required to maintain the current British economy and lifestyle. Quote 3: Reported production of antimony in China fell in 2010 and is unlikely to increase in the coming years, according to the Roskill report. No significant antimony deposits in China have been developed for about ten years, and the remaining economic reserves are being rapidly depleted. Ref: http://en.wikipedia.org/wiki/Antimony http://www.bgs.ac.uk/mineralsuk/statistics/riskList.html

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IQBAL Z KHAN

Apr 17, 2014 04:23am

No matter who it is, Pakistani or Chinese no one should be allowed to loot the country. Well done PTI. You are the trend setters.

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syed

Apr 17, 2014 06:55am

today's china is all about business, here isn't no friendship in today's race where China is bulking up its supplies for the future. look what they are doing to Africa, look closer and take Taiwan, they are even exploiting north korea for their gains. its a new whole new ball game boys, so you better buckle up !!! They got so much money, they will break any barrier to get to a resources they want. They don't play fair either, so its time you save your resources and wake up, time for paki cheen dosti is long over !!!

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Ahmer

Apr 17, 2014 07:07am

Friendship must be a two way street. We cannot afford another East India Company.

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roza

Apr 17, 2014 07:33am

Now , friendship with India is better than anyone.

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rudra

Apr 17, 2014 08:21am

To all my pakistani friends. China is taking advantage of you due to your dislike of india. China wants to make money out of pakistan..... period. I think india will be a more loyal friend to pakistan than china.

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fida sayani

Apr 17, 2014 08:29am

When a citizen of foreign country uses such allegation against the provincial government, it is the duty of Federal government to take action and put before the people of Pakistan the true story. Looks like Nawaz Sharif and Ishaq Dar are sleeping. Take for example the revaluation of PAK Rupee. The price of a commodities should decrease, instead the Multinational companies are increasing the price, getting double windfall. The increase in prices gives them more profit and they send the same profit overseas to there parent company giving them more dollars. Nawaz/Dar wake up.

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Sher Khan

Apr 17, 2014 12:02pm

@Laing: Absolutely. This is a very sensitive matter. I think the KP government is doing a due inquiry, so let the justice take its course.

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Malik

Apr 17, 2014 12:10pm

@roza: And how is that.... While she is trying to isolate Pakistan on each international forum, be it sports or economy. And making illegal reservoirs on agreed upon water channels.

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John

Apr 17, 2014 07:45pm

Dawn: Please give a reason if you block a comment (e.g link to a policy), and how it was violated > firm carried out illegal minining and export to China. To be honest, I expected to see Pak-Chin bhai-bhai, and it was a surprise to see many comments towards national interest. Please look at what chinese companies did in Africa, learn the lesson soon, educate your populice from being looted/disrespected and then thrown paisas not worh, and exporting the loot to China. Remember one thing, there is nothing called "chinese private companies" (all companies in China are under control of Chinese govt - they are not independent decission makers). Wake up before getting taken for a ride.

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John

Apr 17, 2014 07:49pm

@Zee: As a bonus they put some malware embedded in their chip, so they can remote-destroy/control if Pak policies go against chinese in future :). I also see Pak having telecom alliances, that's one more danger industry that should be handled internally or a country that is far from your borders.

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John

Apr 17, 2014 07:52pm

@JK: good observation about labor migration (and discrimination of local population). Doesn't pak govt put some of their ISI money to figure out what chinese companies (i.e stooges for chinese govt) did in african countries and other places?

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Muhibullah

Apr 17, 2014 08:23pm

I've worked for many years in a Chinese firm and I know their way of doing business is obtaining contracts through bribery & corruption of government officials. So, Chinese investors threatening to quit possibly means that Ziauddin Afridi is a hurdle in business-as-usual and awarding contracts and licenses on basis of merit rather than bribes.

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zohaib

Apr 18, 2014 07:58am

What are our mining engineers doing? As far as i know there is a mining discipline in mehran university of engineering atleast. It's about time we invested in acquiring latest mining technology even by sending young engineers abroad for training on schlarship. That way we could save billions of dollars worth of natural resources which goes in the coffers of foreign companies. We are a resource rich country and should seriously think on these lines. But then again there are so many things to be put right in this country. It seems pakistan has always been ruled by its enemies. Chinese needs pakistan as a friend more than we need chinese so we stop being a slave to them and be exploited by them

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ssf

Apr 18, 2014 08:25am

@JKN: Yes, after 10%, the license will be issued.

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ssf

Apr 18, 2014 08:48am

the chinese are overall exploiters and are deeply interested in their own welfare while taking advantage of the friendship. They have done the same with the US while keeping tight control of import from the US they have almost developed their country by copying US technolgy manufacturing and then exporting.to that country. In the US almost everything is made in China. Pakistan better watch out. China is also doing the same in Africa and Latin America.They are no friend and I don't blame them. Remember what they did to India while India supported them.

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ssf

Apr 18, 2014 08:57am

Pak chin bhai bhai I dont think so. They exploited KP now they want to go to Blochistan make sense for them.

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shani

Apr 18, 2014 09:42am

take a break....this is just one side of the picture, please manage to get a complete view. n respected media this is ur ethical obligation to publish the whole story not the part u like !!! if someone manages to give a press conference this must never mean that his opinion is the only thing worth publishing ... hope no offenses made here, m just 'having a say' :)

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Devil

Apr 18, 2014 10:05am

Pakistan's all weather friend just revealed his real face ! But it will again be concealed behind the facade ! South Asians are emotional fools !

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Hakim

Apr 18, 2014 11:42am

Most people commenting here seem to be from India and trying to damage the friendly relations between Pakistan and China.

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Imran Jiwani

Apr 18, 2014 01:30pm

@Ahmad noor: I agree the headline should change to something like " Ziauddin Afridi, an advisor of Chief Minister KP Pervaiz Khattak on Mines served notices to representative of a group of Chinese investors"

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Imran Jiwani

Apr 18, 2014 01:34pm

@Last Word: Thanks for sharing this info, any link to your source would be appreciated. Thanks.

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Insaf Khan

Apr 18, 2014 06:55pm

Here is the Government of KP Version: http://www.dawn.com/news/1100718/kp-govt-accuses-chinese-firm-of-illegal-mineral-export http://www.thenews.com.pk/Todays-News-7-244863-Chinese-firm-illegally-exported-500-ton

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ahsan7979

Apr 18, 2014 08:13pm

@Nasir: Perhaps Drones should be sent to your house...

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Agha Ata

Apr 18, 2014 08:28pm

Chinese are learning to understand Pakistanis.

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Azmat Khan

Apr 18, 2014 10:58pm

What is this PTI and IK? Corruption , mismanagement and bad governance only are staring out of this fuss.Please do not treat the province in this way.

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Azam

Apr 18, 2014 11:51pm

@Taimoor Khan: are they taking minerals of Pakistan free of cost? this stupid nation will never developer unless people like you are not changing mindset. no one is willing to come to Pakistan to invest. textile industry is shifting to Bangladesh due to security and red tape. Chinese are investing in this country and narrow mind pathan idiots are creating issues like it is another Kalabagh dam. illiteracy and this tribal nations are curse for Pakistan.

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Azam

Apr 18, 2014 11:57pm

@Imran Siddiqui: law should be equal for all. it is either foreign investor or local. if it is not according to law then such companies should be immediately blacklisted and kicked out.

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Ahmer

Apr 19, 2014 11:14pm

Our friendship with China has become too emotional and consequently, one sided. The only All Weather friend China has is a dollar. What have we gained in real terms from our friend since 1961 when Bhutto embraced them?

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