The government has given the approval to extend the lease agreement between Saindak Metals Limited (SML) and Metallurgy Corporation of China (MCC) for the Saindak Copper-Gold Project.

According to the details available with ProPakistani, the extension of the leasing agreement between SML and MCC for extraction of Copper and Gold deposits along with the development of the mines is in accordance with clause four of the lease agreement and got approval from the Ministry of Law as well.

Chinese state-owned company, MCC, is already in operations in the Chaghi district of Baluchistan since 2002, and the project is becoming fruitful for both SML and MCC in terms of profitability and sustainability.

Metallurgical Corporation of China (MCC) and state-owned Saindak Metals Ltd. (SML) signed an agreement in 2017, under which the Chinese firm kept on operating the Saindak Copper-Gold project for five years. The lease is set to expire on 30 October 2022. The two companies had originally signed in 2002 a 10-year contract, which was extended for five years in 2012. The terms of the contract have been kept confidential all along.

MCC is now interested in bidding for Pakistan Steel Mills and is looking for fresh investments in special economic zones (SEZs) that are being set up under CPEC. The deal is believed to involve the provincial government with about 25 percent of the net profit, along with royalties and duties.

The provincial government holds 35 percent shares in the project while the federal government owns 15 percent. The remaining 50 percent stakes are held by MCC. Later, the provincial government signed a separate agreement with the MCC-SML consortium that is valid until 31 October 2022.

The ECC, which met under the chairmanship of Finance Minister, Shaukat Tarin, after a detailed deliberation, approved the summary to extend the existing lease agreement between the SML and MCC for another 15 years, with effect, from November 1, 2022, to October 31, 2037.