Gold imports increasing
rivers and river beds in Pakistan are sources of placer gold deposits.
The Saindak Copper and Gold mine is located near Saindak in the Chagai District of Baluchistan. The discovery of copper deposits was made in 1970 with collaboration of a Chinese engineering firm and the project was set up by end of 1995.
About 13.5 million dollars were invested by the government of Pakistan in the project. For developing the Saindak mine, a formal contract for $350 million was entered into with China Metallurgical Group Corporation during 2002 and the mine was leased for a period of ten years.
The lease was further extended by another 5 years from October, 2012. Mine, withan average of 0.5 gram of gold per ton and 1.5 grams of silver per ton. The mine is capable of producing 1.5 ton of gold annually.
Antofagasta, the company possessing the RekoDiq field has targeted an initial production of 1, 70,000 MT of copper and 3, 00,000 ounces of gold a year.
Sarhad Development authority has reported its finding of several gold bearing horizons in the region of Chitral. The mineralized horizon contains the mineral boulangerite which carries significant amount of silver and gold. Gold, silver and copper anomalies are also found near the village of Zaluka, Dir. Sample analyzed from this zonecontains 3-11 ppm gold along with silver and copper content.
Recently Pakistan had discovered a gold source that is the second biggest near the district of Chiniot which is in the Punjab province. Estimates say that this district may contain up to 500 million ton of gold in its 28 km area and will have a total worth of about a trillion dollars.
There are many gold mines in Pakistan
which is operated by Barrick Gold RekoDiq's mineral resource estimates to about 5.9 billion ton with average gold grade (0.22 g per ton) and average copper grade (0.41pc). This attributes to about 37.5pc and is worth about 2.2 bn ton.
Magic mountain's: The RekoDiq gold
and copper mining project
In 1993, SiahRek and its nearby village Humai got another name: RekoDiq gold and copper mining project.
Rutti is a midpoint in the vast triangle that is Chagai district, wedged between Quetta to the northeast, Taftan(on the Pak-Iran border) to the southwest and Hamun-e-Mashkellake to the southeast. To the east of the village is an area that has both water and vegetation and to its west is an immense nothingness: tiny hamlets separated by enormous stretches of desert,SiahRek being one of them.
In 1993, SiahRek and its nearby village Humai got another name: the RekoDiq gold and copper mining project. In the Balochi language, the name evokes infiniteriches, sand (rek) and mounds (diq) of gold.
In 1995, the government launched a gold and copper mining project at Saindak but closed it down after a trial run of a few months, due to a lack of funds and falling prices of copper, gold and silver in the international market. The project was restarted in 2001, after the federal government awarded a mining contract to a state owned Chinese firm, Metallurgical Corporation of China (MCC). The contract was initially valid for 10 years but later it was extended for another five years. It gives Balochistan only two percent royalty; the federal government owns 48 percent stake in it, while MCC has 50 percent share in its ownership and profits.
The Chinese company has been interested in RekoDiq since the 1990s. Even when TCC was conducting its prospecting and exploration work there, MCC approached the provincial and federal governments with a proposal to develop the RekoDiq project. On January 23, 2009, the steering committee rejected MCC's proposal. Speculation about a possible role for the Chinese firm in the future development of the RekoDiq project did not end. A successful bid for involvement in the RekoDiq project, either for a part or the whole of it, may help MCC get out of a mining project in Afghanistan where it no longer seems interested in operating. In early 2013, news reports appeared about a conflict between the Afghan government and MCC over MesAynak copper mining project in Logar province, southeast of Kabul, Wikipedia said.
In 1995, the government launched a gold and copper mining project at Saindak but closed it down after a trial run of a few months, due to a lack of funds and falling prices of copper, gold and silver in the international market. The project was restarted in 2001, after the federal government awarded a mining contract to a state-owned Chinese firm, Metallurgical Corporation of China (MCC). The contract was initially valid for 10 years but later it was extended for another five years. It gives Balochistan only two per cent royalty; the federal government owns 48 percent stake in it, while MCC has 50 percent share in its ownership and profits.
The fifthlargest deposit in the world remains under ground in Pakistan as a dis- pute over thatwhohas the right to develop that halts progress.
Tethyan Copper Company (TCC) is a joint venture of Barrick Gold of Canada and Antofagasta of Chile, had been awarded a licence for exploration in the RekoDiq area in 2006. In 2011, TCC's application for a mining lease for the project was rejected by the Balochistan government of the then-chief minister AslamRaisani, who decided to run the project on its own.
TCC took the case to the international arbitration court claiming damages because it had invested more than $500 million in exploration and feasibility studies.
There is potential, for multiple mine developments over the next few decades. By refusing a mining licence without good grounds, it's sending quite a negative signal to the mining community said Tim Livesey, the chief executive of TCC, in 2012.
The rejection of a mining licence to the company after an exploration permit had been granted was an unusual decision by the government. Raisani abruptly closed off communication with the company and even refused to meet its executives.
Balochistan has always been on the country's political periphery, and has suffered years of neglect. The Baloch nationalist parties had reservations about the RekoDiq deal, signed with a foreign firm by the government of former president Pervez Musharaf without taking local leadership into their confidence.
Soon after the rejection of TCC's bid, the Metallurgical Corporation of China (MCC) came with a counter proposal for a mining lease for RekoDiq and offered Balochistan a larger share in income and royalty.
In 2002, MCC had acquired a lease the Saindak copper and gold project in the same district as Chagai, which was toexpired in 2012. If the Raisani government was serious in its desire to develop deposits using local firms, why did it not oppose the fiveyear extension in the lease period of the Saindakproject.
The RekoDiq project became controversial after news stories alleged that the RekoDiq gold mines were being secretly sold to foreign firms for a negligible price.
The dispute between TCC and Balochistan began after the resignation of Mr Musharraf in 2008. Under his administration, TCC was awarded the project with mining rights and it signed a joint venture agreement with Balochistan holding 25percent interest in the project. But in December 2009, Balochistan said it was cancelling the TCC deal.That triggered a blame game, with each side accusing the other of violating mineral rules. In January 2013, former chief justice of the Supreme Court Iftikhar Chaudhry declared the RekoDiq contract between the Balochistan and TCC void.
Crucially, the general elections of May last year brought a new government to Balochistan, with Abdul Baloch replacing Raisani as chief minister.
Baloch's government is now considering renegotiating the deal with the TCC. Both the federal and provincial governments now wish for an out-of-court settlement with the TCC. If a deal with TCC is now the best choice, why did the previous government reject the company's bid for a mining lease?
In early 2013, Raisani was removed from the post as the law and order situation in Balochistan broke down. After stepping down, he linked his removal to his decision to scrap RekoDiq deal.
The former chief minister failed to serve the interest of Balochistan when he tore up the TCC deal.
For instance, how would the cashstarved province, which is unable to pay even the fee for legal experts, pay the damages if the international court rules in favour of TCC. In case of an out-of-court settlement, TCC would be in a stronger position to bargain over the issues related to the development of the gold mine. The RekoDiq project could lead to the development of a modern mining industry and change the destiny of the country's least developed province.
Arbitration proceedings have further delayed the mine's development, which has not been worked since 1993 when BHP Billiton signed a deal with Balochistan. While BHP had an exploration deal, it did no practical work and sold its 75 percent interest to TCC in 2000. In 2006, TCC was taken over by Antofagasta and Barrick Gold.
TCC deserves credit for the discovery of the huge RekoDiq deposits. The company was willing to make an investment of $5bn over five years. It could have been the biggest foreignfinanced project in the country's history.
The custom andimport taxes are: General duty applicable in Pakistan is 0.17 pc
According to import and export of Gold, Gold Jewelry and Gemstones Order, 2001, there are few norms and standards to be maintained and kept in mind while conducting export, import under the said Order.
Duties and Taxes
Import of gold and gemstones under all schemes shall be exempt from normal import tariffs. The import of other raw materials, tools, machinery and equipment under import of gold and gemstones against export of jewelry or import entitlement shall be allowed free of customs duties and advance income tax. In case an exporter uses dutypaid raw materials procured from the market, duty drawback shall be admissible according to the standard duty drawback system in force. Sales Tax on export of Gold Jewelry and Gemstones is zero-rated. An exporter can claim refund of Sales Tax paid on raw material inputs. Advance Tax at the rate of 75pc shall be charged on export of Gold Jewelry and Gemstones along with 0.25pc Export development surcharge.
Pakistan imported over 500 kg of gold in fiscal 2018.
The gold imports into the country increased by 24.28 percent during the fiscal year 2017-18 against the imports of the corresponding period of last year, Pakistan Bureau of Statistics ( PBS) reported.
In terms of quantity, Pakistan imported 509 kilograms of gold during the period under review compared to the imports of 440 kg during last year, showing an increase of 15.68 percent.the
Meanwhile, on a year-on-year basis, the gold imports into the country increased by 86.70 percent in June 2018 compared to same month of last year. The gold imports in June 2018 were recorded at $1.404 million against the imports of $0.752 million. Gold and Silver Rates in Pakistan
For centuries, gold has been the most popular precious metal and has been used as an investment by countless individuals. Many investors prefer to buy gold as it prevents the risk of loss by diversifying it through the utilization of derivatives and future contracts. Recently, the Gold Rates in global and domestic markets had closed at flat rates on technical ground due to various reasons. Pakistan seeking help from the International Monetary Fund (IMF) had severely shaken the country's economy. However, because of Saudi loan, According to the experts, the Future Gold and Silver rates inPakistan has been on a rise ever since the prices had gone up during late October. Recently, the Gold rates in Pakistan closed at $1,337 an ounce with a stunning $1 upward variation in price value of the precious metal and the previous trading session and domestic bullion also witnessed the same trend of price hike. Gold in 24 karat closed at Rs 51,097 per 10 grams, while per tola in 24 karat gold at Rs 59,600, according to dealers.
One can find live international gold rates in accurately converted Pakistani rupee rates in various karats including, 24K per Tola, 24K per10gm and 22K/Tola and 22K per10gm. Additionally, the association of KaracprehiSaraf Jeweler, which is responsible for setting and managing the gold rates for local markets in Karachi provide the rates for 24K/Tola, 24/10gm, and karat 22K/Tola, 22K/10gm and silver per 10/gm per ording to different cities such as Karachi, Islamabad, Lahore and Rawalpindi. The rates are updated on a daily basis.
The country World's Largest
Producer of Gold
China produces more gold than any other country in the world, followed by Australia, Russia, and the United States.
The production of gold is so important What are the trends and the economic influences that drive production and also price. To understand the first pointone has to understand the demands for gold. Gold has commercial demand that it is fashioned into jewelry but also a financial demand as it is used to manage risk in financial portfolios and to protect the wealth of many. It also has peripheral uses in technologies such as the smartphone.
China produces more gold than any other country in the world. Asia as a whole produces 22pc of the world's total production. Central and South America account for 17pc with North America contributing 15pc. Africa produces 20pc and the former Soviet Union C.I.S region 14pc. Amazingly, gold recycling accounts for one third of the total production.
Below taken list of the top gold producing countries in the world.All numbers taken from the US Geological Survey.
Top Gold Producers
1. China - 440 Tons
In 1990 the Chinese Government passed laws making it easier to buy gold. As a result, demand rose, as did investment in bars and coins. Today, China produces 440 metric tons of gold every year, more than anywhere else in the world. Another factor that may be responsible for the demand of gold is the growth of wealth in China. Since 1980 an increase of 20pc of the population of China chose to live in urban areas. As the wealth per capita increased so did the demand for gold. Most of the gold that is produced in China remains in the country.
List of countries by gold exports
The following is a list of countries by gold exports. Data is for 2016, in millions of United States dollars, as reported by The Observatory of Economic Complexity. Currently the top twenty countries, as of 2016, are listed, their 2012 figures are also provided by Wikipedia.
India is importing gold from more than 40 countries across the world. Switzerland, UAE, USA, Ghana and South Africa are the top gold exporter countries of India. India's gold import represents 8.4pc of world imports during the year 2016. India recorded gold import value of USD 22944490 thousand in 2016.
Gold in India traditionally seen as storage of wealth by buyers while the Indian government considers it unproductive as it leads to idle savings rather than the investments. The gold demand in India is approximately 700 to 800 ton per annum. With an aim to reduce demand for gold coins manufactured outside India and to recycle the gold available in the country. The government has also introduced India gold coin in the year 2015 to reduce the import.