ISLAMABAD, July 30: The country’s one of the mega projects - Saindak Copper-Gold project in Balochistan - will start much awaited commercial production by the end of this year.

A team of over 50 experts of Metallurgical Company of China (MCC) has initiated the job at the project while the full-fledged work at the project would commence by December this year, official sources said on Tuesday.

As soon as the work in full swing starts simultaneously the project will start commercial production.

Pakistan and China had signed the contract of $350 million during the visit of Chinese Prime Minister to Pakistan, last year.

The Chinese company has been awarded lease for Saindak Copper-Gold project for the period of 10 years with the conditions.

Under the agreement, the MCC would invest an estimated amount of $9 million and would pay $0.5 million annually as rental.

The MCC would share 50 per cent of the cash surplus, if generated for the sale of metals to be recovered from the project.

The government of Balochistan will also receive $0.7 million annually as royalty and the MCC would pay royalty after negotiation with Government of Balochistan with the support of Government of Pakistan.

The MCC share in the surplus cash flow generated from the project shall be in the first place directed to recover the MCC working capital and thereafter remaining cash surplus shall be reinvested in the project as equity.

Initially, the Chinese company will invest $39 million as working capital to make the project operational.—APP