Cabinet approves lease extension of Saindak Mine project

 February 15, 2022 (MLN): The Federal Cabinet has given approval for the extension on the duration of the Saindak Mine lease for another 15-years to the Chinese company working on the Saindak Gold and Copper Mine project in Balochistan, Minister of Energy, Hammad Azhar via his official Twitter handle informed today.

The minister said that as per the newly negotiated agreement, the share of the government of Pakistan has been increased by 3% from 50:50 to 53:47 in Pakistan's favour.

While the Chinese company has also agreed to enhance rent, royalty and social uplift payments to the federal and Balochistan governments. Accordingly, the Royalty to the government of Balochistan (GoB) has been enhanced from 5% to 6.5% of sales revenue, social uplift support to GoB has been raised from 5% to 6.5% of the net profit while annual rent has been increased by up to 40% (indexed with price).

The aforementioned agreement has been concluded in consultation with all stakeholders including GOB, the minister added.

Earlier, the Ministry of Energy, submitted a summary before the ECC on 15 years’ extension of the lease contract between the Saindak Metals Limited (SML) of Pakistan and the Metrological Construction Company of China (MCC) for the Saindak Copper-Gold Project, according to a press statement issued by the Ministry of Finance.

The ECC after a detailed discussion allowed the extension of the lease contract and recommended to review financial aspect of the project annually by the professional experts.

 To note, the lease contract was to expire on Oct 31, 2022, which would now be valid till 2037.

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