The Reko-Dik mining project has potential to emerge as the second mega copper and gold project after Saindak in Balochistan. The Saindak copper and gold project is already in operation in district Chaghi under the Chinese engineers and experts. It started production from August 2003.

An Australian mineral exploration firm - the Tethyan Copper Company (TCC) is investing one billion dollars in the Reko-Dik Copper Project in Chaghi. The company had planned to start the project in 2003 with an investment of $130 million.

The TCC has been actively involved in exploration work at the Reko-Dik for last three years. The company's drilling activities led to the discovery of significant copper deposits known as the H4 project on which a detailed study has been completed.

The H4 zone mine so developed will have a life of 23 years during which the government will earn directly projected revenue of nearly $200 million in royalty and taxes, and about $40 million as share in profits. Expectations are high that the development of one mine may spark a mineral exploration boom in Balochistan.

The company has a joint venture with the government of Balochistan. It was granted four exploration licenses covering an area of 920.77 sq km for a period of three years in Chaghi with effect from March 20, 2000.

Feasibility study has been completed for initiating development of copper resources at the Reko Dik. Pre-feasibility studies have also confirmed that the copper metal can be produced at the site through solvent extraction and electro-mining process.

This project will be the first of its kind in the mining of indigenous ore. Additional work has identified potentials at the Reko-Dik for a major world-class copper-gold mine.The company has already spent $10 million on a feasibility study to initially invest $130 million in the project.It will provide 300 jobs.

Managing Director David Moore of the TCC has recently disclosed that the company would be listed on the Australia Stock Exchange for bringing foreign direct investment into Pakistan. This investment is purported to explore and develop copper and gold resources at the Reko-Dik.

The Reko-Dik is one of the most backward areas of the province. It lacks essential infrastructure like roads and other communication networks. People have no drinking water, electricity, educational and health facilities in the area.

The provincial governor has suggested to the company to provide funds for electric supply through the national grid and has also assured provision of cheap electricity, besides facilitating the local people with power connections.

People here generally ask why was this project was not given to the Chinese on lease like the one at Saindak in the same district? The Chinese were pioneer in transferring less expensive technology in metal mining to Pakistan as against the costly Western technology for exploiting copper reserves at Saindak.

The Chinese are also committed to train Pakistanis by offering them on-job training enabling them to run the plant efficiently and confidently once the Chinese complete their legal obligations at the expiry of the lease period.

The Chinese acquired the Saindak project on lease for a period of 10 years. According to the contract, the Chinese will pay $500,000 monthly to the government of Pakistan over next 10 years plus 50 per cent of the total revenue from mineral sale.

The government of Balochistan will also receive $0.7 million per year as royalty. They are committed to replace the Chinese experts by Pakistanis gradually.

Besides, the Saindak project will create 1,288 direct and 11,000 indirect jobs for the people. On the other hand, the Reko-Dik project under the Australians would not bring such larger benefits for Pakistan and the people of Balochistan.