Permanent Accommodation Camp To Be Built At Reko Diq Copper Gold Mines

Permanent Accommodation Camp To Be Built At Reko Diq Copper Gold Mines

By: Communicators - Business Team (July 19, 2024)

International Industries Limited's (INIL's) associated company, Chinoy Engineering & Construction (Private) Limited (CECL) has secured a contract to construct a Permanent Accommodation Camp at Reko Diq Copper Gold Mines, Baluchistan. The development was shared by INIL in its notice to the Pakistan Stock Exchange (PSX).

CECL has invited equity investment by International Industries Limited (IIL) of 4,845,000 ordinary shares of Rs10 each making a total of Rs48,450,000/- which is 17% of its post-issuance paid up capital. In addition, CECL has also invited a short-term loan of up to Rs300 million, if needed, at a markup of KIBOR + 3% and/or a corporate guarantee in favor of Habib Bank Limited (HBL) for CECL to secure financing of up to Rs1.5 billion, and/or issue a guarantee to ensure that CECL performs its contractual obligations with Reko Diq Mining Company Ltd (RDMC), with joint and several liability with associated companies International Steels Limited and Pakistan Cables Limited.

Reko Diq project is a significant mining and development initiative located in the Chagai District of Baluchistan. The project is strategic part of Canadian mining company Barrick Gold’s copper portfolio and represents one of the largest undeveloped copper-gold projects in the world. Reko Diq is owned 50% by Barrick, 25% by three federal state-owned enterprises, 15% by the Province of Baluchistan on a fully funded basis and 10% by the Province of Baluchistan on a free carried basis.

INIL has also shared that the company’s Board of Directors understands that this investment will maximize shareholders’ value of the company. The board recommended accepting the invitation to invest in CECL and have called an Extraordinary General Meeting (EOGM) of the shareholders of the Company for the approval of the investment by way of special resolutions.