Balochistan: the reality – III
  Posted on Tue 20 Feb 2007 by Admin (1741 reads)
BY:Mir Mohammad Ali Talpur

A sense of desperation and urgency seems to grip the Establishment in its policies regarding Balochistan. This is particularly evident in its militarization, its exploitation of resources and grabbing of real estate. Their urge is so overpowering that they have become heedless to the resentment and hostility that these policies generate among the people.

In Balochistan, militarization and exploitation simply cannot be divorced. In fact resources are the reason behind all the confrontational policies that have been pursued and implemented since partition. The calamity has been aggravated by incompetence, corruption and downright knavery in all projects and ventures undertaken there.

Syed Fazl-e-Haider, a respected analyst, has this to say: “The Saindak saga is also a story of financial mismanagement and administrative mishandling by government planners and economic managers in Islamabad. A project originally estimated to cost Rs 6 billion ended up costing more than Rs 14 billion.”

This project was supposed to employ and train local youth but the required Rs1.5 billion working capital wasn’t provided by the Centre so it failed. It has been revived under the Chinese with terms that are exceptionally unfavorable for Balochistan and its people.

They have a contract to run it in return for 50 percent of the profits. The company, MCC, will pay $ 500,000 monthly to Pakistan over the next 10 years plus 50 percent of total revenue from mineral sales. Of this 48 percent will be pocketed by the federal government and only a measly 2 percent will go to Balochistan. It is anybody’s guess how much of this will be used for the benefit of the people. Balochistan will receive only $ 0.7 million/year as royalty. The contrast is indeed striking.

These contracts are entirely to the disadvantage and dislike of the Baloch people and that too on three counts: firstly, they are robbed of their resources; secondly, they do not benefit in any way, and thirdly, are left to live with environmental degradation. The government seems least bothered about the fate of the people of Balochistan as long as it gets its pound of flesh.

It is pertinent to point out that the estimate of 412 million tons copper along with gold, silver, pyrite and magnetite, all worth more than $ 4 billion is based on a UN assisted study of the 1970s when the price of copper was $1/lb. Prices have risen manifold since. So deals based on old estimates make them doubly unfavorable.

There is a more objectionable and sinister aspect to this deal. Syed Fazl-e-Haider says, “Higher-than-anticipated production of blister copper at the site in the Chaghai district may reduce the estimated 19-year life of the mine. If the rate of mining continues unchecked, the Chinese contractors will exploit all the resource within the 10-year lease period, leaving no copper or gold for Pakistan to mine from Saindak after the lease contract comes to an end.

The Saindak project was based on estimated ore reserves of 412 million tons containing on average 0.5 gram of gold per ton and 1.5 grams of silver per ton. The mine is reported to have produced about 50,000 tons since October 2003. According to official estimates, the project has the capacity to produce 15,800 tons of blister copper annually, containing 1.5 tons of gold and 2.8 tons of silver. The reported production results, however, have generally remained on average more than 2,000 tons per month, which means that more than production of 24,000 tons per year has been taking place.

At present, two non-executive directors of the Saindak board are responsible for monitoring activities. As they are based in Islamabad however, it is not practical for them to monitor the project.

The Saindak project produced about $ 70 million worth of copper during the last financial year and contributed about $ 10 million to Islamabad in export and royalty earnings. It was earlier estimated that the project would generate annual revenue of about $ 65 million.”

The Chinese have been given carte blanche to exploit these resources. Copper is crucial to China’s development. Its present consumption of 16 percent of world copper production is the highest in the world; it outstripped the US in 2002 and will be consuming 23 percent in 2008.

It may interest the reader to know the difference in the price of blister copper (99.5 percent pure) in the US, $ 2.4952/ton and China, $ 3.2446/ton. Copper prices can only rise; cathode copper, its purest form, saw an increase of 45 percent in 2006 and touched $ 10,775 a ton on May 15, 2006 in China. It will import 880,000 tons this year to plug the shortfall. So the richer others become, the poorer Balochistan becomes.

According to Fazl-e-Haider, “Government of Pakistan has also signed a MoU with China Metallurgical Construction Company (MCC) on March 22, 2002 for the Duddar Lead-Zinc Project in Balochistan. The lead-zinc deposits at Duddar are located in Lasbela. Under the agreement, the company is committed to investing up to $ 80 million there. The lead-zinc deposits are estimated at over 17 million tons.

The Duddar project has mining and concentrating capacity of 660,000 tons a year. Once completed, the mine will be able to enhance its production to 100,354 tons of zinc concentrate and 32,584 tons of lead concentrates annually. The project will commence production by the end of 2007.”

The contract terms are unknown but one can only expect the worst. The lead and zinc prices stand at $ 1,779.00/ton and $ 3,455.25/ton respectively. Balochistan has proverbial goldmines but they do not benefit the Baloch. There is truth in the statement that ‘a Baloch child may be born without socks on his feet, but when he grows up, every step he takes is on gold.’ The government however ensures he remains barefooted.

This project too will suffer the fate of Saindak, leaving the people all the poorer and suffering the consequences of the environmental degradation combined with the deadly effects of the chemicals used for smelting and extracting ores. While state coffers and pockets of disgustingly corrupt officials and politicians are filled, it is the people who suffer.

The absolute disregard for the lives and welfare of the people considered to be the children of a lesser god comes across poignantly and harshly as symbolized by the fate of the radioactivity-ravaged people of Baghalchur, D.G. Khan, a Baloch majority region in Punjab.

“Clear and Present Danger”, an article by Zofeen T. Ebrahim stated: “From 1978 to 2000, Baghalchur provided the Pakistan Atomic Energy Commission (PAEC) with the ‘yellow cake’ it needed for its nuclear programme, the success of which was dramatically announced to the world in 1998 through a series of tests.”

In 2000, by the PAEC’s own admission, “mining was stopped on the exhaustion of uranium”. But that was when the villagers’ troubles began because the site was then converted into a storage and disposal site for radioactive uranium waste.

And now, Baghalchur is back in the headlines — this time as an embarrassment to the PAEC. The local people have gone to the Supreme Court with a complaint that nuclear waste dumped in the area had contaminated the environment and affected the health of both humans and animals.

Affected are some 50,000 people who live in hamlets scattered around Baghalchur and the 500,000-strong population of nearby Dera Ghazi Khan town. The area is dominated by Baloch tribes.

“The safety and environmental problems that uranium mining brings, as in the case of Baghalchur, are of two kinds,” says Hoodbhoy. “On the one hand dangerous chemical poisons (such as arsenic, uranium, molybdenum, and other heavy metals) find their way into the soil, air, and water. But still more threatening is the radon gas and its various radioactive products.

“Near uranium mines, there are tiny dust particles containing various radionuclides. Easily spread by the wind, this dust creates cancers and genetic damage.”

Nuclear power cannot be produced without risk, says Prof Khalid Rashid, a former PAEC employee. “Radioactive waste will be produced and there is always the possibility of an accident. The radioactive dirt will stay on for thousands of years. The nuclear lobby is bankrupt and more interested in business than the welfare of the people.”

Now spare a moment for Chagai and just try to imagine the devastation of the environment and the ill effects on the people caused by the nuclear explosions there. The perpetrators suffer no ill effects so they bother not a whit.

All the above facts give substance to the justified protests by the people against the unbridled exploitation of resources of Balochistan. There remains no doubt that only the people of Balochistan can be trusted to usefully employ these resources for purposes benefiting the people because the resources are theirs and they should decide how they are used.

The Baloch people would never agree to these exploitative contracts but unfortunately they are not the ones who decide their destiny. The decisions rest with those who are oblivious to the wishes and needs of the Baloch people.

(to be concluded)

The writer has been associated with the Baloch national struggle

READ MORE ARTICLES BY MiR MOHAMMAD ALI TALPUR: http://thepost.com.pk/PrevColumns.asp ... 20Mohammad%20Ali%20Talpur
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BSO Memorandum TO UN

Balochistan, the land of the Baloch people, was forcefully annexed with Pakistan, through a military operation, on 27 March 1948. The Baloch people have been struggling for their right of national self-determination since then.
The atrocities of Pakistan army in Balochistan have a very long history. The Pakistan’s rulers have denied every right to the Baloch people. They colonized their motherland, looting their natural resources.

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