Daily Times

Saindak copper and gold mine is included in the Baloch mineral resources that mark Balochistan as a rich land. Despite existence of gold and copper of great value, the Baloch nation is unable to benefit from it because the Chinese exploitation of Baloch resources is continued with great assistance of the State and establishment. The Saindak production or the so-called Baloch share has never been utilised for the development of the Baloch and Balochistan.

The Saindak Copper and Gold mine is located in the Chagi district of Balochistan. Discovery of copper deposits at Saindak was made in the 1970s in collaboration with a Chinese engineering firm and the feasibility study of the Saindak project started in 1975. The Saindak mine was estimated to have ore reserves of 412 million tones, containing on average 0.5 gram of gold per ton and 1.5 grams of silver per ton. According to official estimates, the project has the capacity to produce 15,800 ton of blister copper annually, containing 1.5 ton of gold and 2.8 ton of silver.

In 1995, production at the Saindak copper and gold mine started with the funding of the government of Pakistan. The Saindak Copper-Gold Project was set up by Saindak Metals Ltd, a company owned by Pakistan, by the end of 1995, at the cost of 13.5 billion rupees. In the initial trial months, the monthly production rate was 1,700 tons of copper, 6,000 ounces of gold and 12,000 ounces of silver. At first, the copper was to be refined in China, the technical partner in the project, but then it was suggested that a refinery be built at Saindak. However, even after a decade it has not been done.

The Benazir Bhutto government closed down the project late in 1995, citing the reason as being the lack of funds to continue the project and the low price of copper in the international market. The Nawaz Sharif government did not take interest in re-starting the project. In addition, it is said that the State bureaucracy opposed the Saindak project on the issue of building the necessary infrastructure, including the RCD Highway section from Dalbandin to Saindak, taking the rail to Saindak from Taftan and other facilities. It also remained a big shock for the people of Balochistan when for the first time a number of Baloch people were employed. It should be noted that the above-mentioned development was made merely for the Chinese interest and benefit.

The government of Pakistan in 2002 invited foreign investors to arrange funding for the project and awarded the mining project to the Metallurgical Corporation of China (MCC) Ltd under a 10-year lease due to expire in October 2012. MCC agreed to pay an annual rent of $500,000 for the mine to the government of Pakistan. The distribution of profits was according to a formula beyond anyone’s understanding. The Chinese company took 75 percent, the federal government 24, and only one percent of the revenue was given to the Balochistan government.

In short, the Saindak Copper-Gold Project (SCGP) is a copper mining project that has been of no use or benefit for the Baloch people. The initial operational agreement between MCC and government of Pakistan was for 10 years up to October 15, 2012, which was extended for a period of five years. MCC is running this project through its subsidiary MRDL (MCC Resources Development Company Pvt Limited) registered with Securities and Exchange Commission of Pakistan.

Unfortunately, there is no detailed examination of minerals from any international laboratory with the view to know the exact ratio of copper and gold in the minerals being extracted from the Saindak mines and there is exact estimate of the costly ores of copper and gold being extracted by the Chinese company. China seems to have been given a free hand to exploit the Baloch resources. The minerals valuing billions of dollars are being swindled since the Chinese company invested only 23 million dollars and, in return, it holds the entire resources of the Saindak project, with no independent monitoring of the project.

The agreement and handing over of the Saindak project has always been against the will of the Baloch people; even the so-called governments have not been consulted, as in 2012, the federal cabinet approved a five-year extension in the lease of the Saindak project, which will end in 2017.

The company claims to have paid 13.4 million dollars as the presumption tax and a six-million dollar surcharge between the period of 2002 to 2012. It also claims a provision of jobs to 1,600 local people in mining and running the plant. The company says that it is upgrading schools and health services and providing scholarships to students of the area; however, the claims go against the reality. According to the local people, the project area is a no-go area for the Baloch people and the people employed in the project belong to the other provinces or are non-Baloch, meaning the presence of Baloch in the project is equal to none. The people in the surrounding areas of the village and district say that there is no development in any sector of life initiated by the Chinese company. The district officials of Chagi confirm that no money from this project has been utilised for the development of the district.

Ransacking of the Saindak copper and gold proves that the federation is only interested to exploit Baloch resources with the help of China. This project could have brought a great economic change in the conditions of the entire Balochistan, but it did not even develop the nearby villages and district since it became operational.

The enormous pillage of copper and gold from the land of Balochistan by China is not justified, as there is no return in the shape of development or funds. However, the resistance movement in Balochistan and the political struggle justifies that the Baloch movement for their rights and ownership of land is right and on the basis of realism. Because the Saindak project is only a single example and we can find numbers of instances in which the Baloch people are underappreciated and Baloch resources are robbed from both ends, particularly by China.

The writer is a Baloch author and human rights activist. Currently, he is a sub-editor at the monthly Bolan Voice Quetta, a staff writer at The Baloch Hal and a freelance online columnist