Tethyan Copper Co Files Notice Of Dispute With Pakistan Province

In a sign of mounting tensions over the development of a massive Pakistani copper and gold development, Tethyan Copper Co. Pakistan Ltd. Thursday filed a notice of dispute with the provincial government of Baluchistan in order to resolve any outstanding objections regarding its mining license application.

"Tethyan Copper sought to meet with the Government of Baluchistan to better understand their observations and concerns and requested an extension of an additional 60 days in order to engage with the Government of Baluchistan, however no extension was granted," said the Tethyan, a joint venture equally owned by U.K.-listed Chilean copper miner Antofagasta PLC (ANTO.LN) and Canada-based miner Barrick Gold Corp (ABX).

"Tethyan Copper is hopeful that the Government of Baluchistan will engage to meet and discuss the mining license application," it said.

Tethyan owns 75% of Reko Diq, one of the world's largest untapped copper and gold deposits, located in the Province of Baluchistan, which borders Afghanistan and Iran. The project entails an investment of around $3.3 billion in Pakistan over a three-year period, marking the country's largest single foreign direct investment.

Tethyan received a letter from the government of Baluchistan a month ago that outlined 10 observations and objections regarding Tethyan's mining license application. The government gave Tethyan 30 days to respond to the objections but refused to either engage in discussions with the company or to grant an extension period to respond to the questions, the company's chief executive, Tim Livesey, told Dow Jones Newswires in an interview. The deadline for submitting a response would have been Oct. 20.

Livesey said if the two parties fail to resolve their differences over the next 120 days, Tethyan would be prepared to take the issue to an international arbitration court in London for resolution.

-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; alex.macdonald@dowjones.com

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