What China plans under the pretext of development for the third-world countries?

 

Mystery Behind Minerals

What China plans under the pretext of development 
for the third-world countries? 
 
Pakistan is the world's 7th largest producer of cotton, and Khyber Pakhtunkhwa is the largest producer of cotton in Pakistan. The province has an estimated of 233,000 acres devoted to cotton production. The province possess an old and rich tradition of handicrafts as well. Mining also constitutes an important industry in Khyber Pakhtunkhwa. The province's mining operations are mainly situated in the Indus, Swat, and Mansehra regions. There are deposits of coal, gold, silver, marble, limestone, and gypsum. The marble deposits are in the Swat Valley and could be dated back to the time of the Gandhara Civilization.

The province has four coal reserves and three natural gas reserves. Thus, it is evident how the region of Khyber Pakhtunkhwa is rich, both culturally and economically but amidst a sorry state of affairs, the locals of the province aren’t able to avail the bare minimum benefits from the vast resources of which they stand the sole owner.
An old proverb says, where there is a will, there is a way but in the recent times in the political spectrum it has changed to where there is a resource, there is China.

China Power Investment Corporation (CPIC) is a Chinese state-owned enterprise engaged in the exploitation of natural resources, power generation, and infrastructure development, among other businesses. CPIC was founded in China in 2002 and operates in the electric power, coal, and petroleum sectors. The Chinese mining company was established in 2005 in Khyber Pakhtunkhwa, Pakistan on the pretext of economic development and political strengthening. 
CPIC has been actively involved in the development of coal, hydro, and nuclear power projects in Pakistan. In 2009, CPI acquired a 70% stake in the Thar coal mining project in the Thar Desert of Sindh province, Pakistan. The project is expected to have a total investment of $2.5 billion and is expected to produce 3.8 million tons of coal per year. In 2010, CPI acquired a majority stake in the $8.6 billion Diamer-Basha Dam project in Pakistan's Gilgit-Baltistan region. As per the claims, the dam will be the tallest roller-compacted concrete dam in the world at 272 meters (892 feet) and will have a capacity of 4,500 MW. Not alone this but in 2011, CPI acquired a 51% stake in the $6.4 billion Kohala Hydropower project in Pakistan's Khyber Pakhtunkhwa province. The project is estimated to have a capacity of 1,100 MW. 
Pakistan holds coal reserves of around 200 billion tons. In Pakistan, CPIC is operating coal mines in Khyber Pakhtunkhwa which include Jhelum, Thar and Gharo. The coal mines in Gharo produce around 1,700 tons per day. The mine was owned by the Railways but CPIC acquired the mine in 2007 and has been producing coal from there since then.

CPIC has been awarded the mining contract for Jhelum Coal Mines, Thar Coal Mines and Suruch Coal Mines in the Thar region of KPK Pakistan. It is authorized to start mining coal by digging holes with a diameter of 3-5 metres and currently operating the Jhelum, Thar and Gharo coal mines.
The company has been active in Pakistan since 2005, when it acquired a majority stake in the Huaneng Shandong Ruyi Pakistan Textile Mills. In 2009, CPI acquired an 80% stake in the Pakistani company Pakgen Power Limited, which operates a 1,320 MW coal-fired power plant in the Thar desert region of Sindh province.

CPI has also been involved in the development of the Diamer-Bhasha Dam in Pakistan's Khyber Pakhtunkhwa province. The dam, which is expected to have a capacity of 4,500 MW and expected to be the largest hydropower project in Pakistan.
 
Coal from Pakistan will not be exported to China, because coal from China is considered to be of higher quality. Coal from Pakistan will be used domestically for power generation. In addition to coal, the China Power Investment Corporation is extracting coal, copper and iron ores in the Awaran district of Balochistan. It is one of the major investors in Pakistan because of the abundance of natural resources, such as coal, copper and iron ore. Till date, the China Power Investment Corporation has invested US$2 billion. In return, CPIC assures to offer economic, social and technological benefits to Pakistan which also works as an image-cleansing mechanism.

The mining of coal, copper, and iron ores by the China Power Investment Corporation in Pakistan is advantageous for the improvement of Pakistan's economic development but does it offer equal benefits to the locals remains a significant question. 
 
The company operates through five subsidiaries and joint ventures, namely:

-China Power Investment Corporation (51%)
-Xinjiang Goldwind Science and Technology Co., Ltd. (51%)
-Pakistan Electricity Generating Company Limited (100%)
-China Energy Fund Committee (100%)
-Huaneng Shandong Ruyi Pakistan Textile Mills Limited (38%)
-Pakgen Power Limited (80%)

In part-II of the report, we will further delve deeper to understand the mechanism of its subsidaries.  

 

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