White & Case advises Pakistan on reconstitution of Reko Diq project and resolution of US$11 billion dispute
2 min read
Global law firm White & Case LLP has advised the Federal Government of Pakistan, the Provincial Government of Balochistan, Government Holdings (Private) Limited (GHPL), Oil & Gas Development Company (OGDCL) and Pakistan Petroleum Limited (PPL) on the reconstitution of the Reko Diq project and the comprehensive resolution of a US$11 billion dispute.
White & Case partner Kamran Ahmad, who co-led the Firm's team, said: "Our role advising the Federal Government of Pakistan, the Provincial Government of Balochistan, GHPL, OGDCL and PPL has helped turn the albatross of the second-largest ICSID Award ever rendered against a sovereign into a multi-generational, multi-billion dollar investment and development opportunity."
The reconstitution has allowed the Federal and Provincial Governments, GHPL, OGDCL, PPL, and Barrick Gold respectively to reach an agreement regarding the development of Reko Diq, one of the largest undeveloped copper-gold projects in the world, which has been in dispute for over a decade.
White & Case partner Rebecca Campbell, head of the Firm's Global Mining & Metals Industry Group, who co-led the Firm's team, added: "The successful conclusion of this highly complex landmark reconstitution transaction is testament to our capabilities as a leading advisor in Pakistan and the mining & metals industry as well as our commitment to serve our clients. The reconstitution will unlock large volumes of investment and tax revenues for the Federal Government of Pakistan and Provincial Government of Balochistan and progress a nationally significant mining project that s been mired in controversy for years."
Reko Diq will be owned 50 percent by Barrick, 25 percent by Pakistani state-owned enterprises GHPL, OGDCL and PPL and 15 percent by the Province of Balochistan on a fully funded basis and 10 percent by the Province of Balochistan on a free carried basis.
Barrick is reportedly planning to invest as much as US$7 billion over two construction and expansion phases in the coming years as a result of the reconstituted agreements. During peak construction the project is expected to employ 7,500 people and once in production it will create approximately 4,000 long-term jobs, with the employment of local communities prioritised. Balochistan's interest in the project will be fully funded, meaning that the province will reap the dividends, royalties and other benefits of its shareholding without having to contribute financially.
The White & Case team in London which advised on the matter was led by partners Rebecca Campbell, Kamran Ahmad, Andrea Menaker and Mark Richardson and included associates Alex Field, Asad Khan, Agnieszka Zarowna, Kit Goodfellow and Omar Anwar.
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