ISLAMABAD: Pakistan on Tuesday approved a renegotiated deal with the Chinese company for Saindak mine which involves an increase in the country’s profit share and an enhanced royalty for the Balochistan government.
The details were shared by Federal Minister for Energy Hammad Azhar from his Twitter handle, who said that the federal cabinet has given approval for the extension on the duration of Saindak Mine’s lease to the same Chinese company.
He shared that as per the newly negotiated agreement, the government of Pakistan’s share in profit has increased from 50:50 to 53:47 in Pakistan’s favour.“Royalty to [government] of Balochistan enhanced from 5% to 6.5% of sales revenue,” Hammad Azhar said and added, “Social uplift support to GOB from 5% to 6.5% of net profit and increase in annual rent by up to 40% (indexed with price).”
To get feedback, the GoB and pertinent Ministries/Divisions were given copies of the draft summary and its appendices. With a few small adjustments that are included in the Addendum that is being filed with this document, the Ministry of Law & Justice has approved the proposed Addendum No. 4 to the Lease Contract. Addendum No. 4 has been authorized by the GoB. There has also been approval from FBR, the Ministry of Industries and Production, and the Finance Division.
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