Federal Minister for Energy Omar Ayub informed the National Assembly that a state-owned entity of People’s Republic of China, namely M/s Metallurgical Corporation of China Ltd (MCC), has been engaged for operation of Saindak Copper Gold Project (district Chagai, Balochistan) under a documented agreement with Saindak Metals Limited (SML), duly signed between the parties on 30-11-2001. Up till now around US$2Bn has been collected through the Saindak project from China.
The contract between SML and MCC was initially made for 10 years w.e.f. October 02, 2002. Later the contract term was extended in five years spell up to 31st October, 2022 with the consent of government of Balochistan and approval of the federal cabinet.
The terms and conditions of the Contract are: (i) annual rent: US $0.500 million paid to SML; (ii) royalty; 5% of sale proceeds paid to government of Balochistan, (iii) presumptive tax; 1.00% of sale proceeds paid to government of Pakistan, (iv) EPZ Dev Surcharge: 0.50% of sale proceeds to EPZ Authority, (v) profit sharing: 50% of cash surplus to SML [of which 60% on net basis is shared with GoB under Aghaze Haqooq-e-Balochistan Package] and (vi) social uplift support: 5% of net profit will go to Miners’ Welfare Board, GoB.