Islamabad, Mar 20 (IANS): An out-of-court settlement of the Reko Diq project in Pakistan's Balochistan province's Chagai district has been finalised and an official announcement in this regard is likely be made, The Express Tribune reported.

The Pakistan government has actively engaged with Australia's Tethyan Copper Company (TCC) to reach a settlement as the country was threatened with facing a penalty of $6 billion due to its decision to deny a mining lease to the TCC.

The Attorney General for Pakistan (AGP) office, especially International Disputes Unit Head Additional Attorney-General (AAG) Ahmed Irfan Aslam, mainly negotiated the Reko Diq deal.

AAG Ahmed Irfan had earlier successfully negotiated the deal in the Karkey case, in which Pakistan faced a billion-dollar fine.

According to sources, a new agreement was signed by representatives of the federal government and Balochistan with a delegation of Barrick Gold led by Chief Executive Mark Bristow.

As per the terms of the new agreement, the Reko Diq project shall be revived and developed by Barrick Gold in partnership with Pakistani entities.

Fifty per cent of the new project's shares will be owned by Barrick Gold, while the remaining shares shall be owned by Pakistan, divided equally between the federal government and the provincial government of Balochistan.

The federal government's shares of 25 per cent shall be divided equally amongst three state-owned entities (SOE), namely Oil & Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Pakistan Limited (GHPL), Express Tribune reported.

Balochistan's shares shall be held by a company wholly-owned and controlled by the provincial government.

Earlier, the lawmakers of Balochistan expressed their satisfaction with the terms of the proposed deal after senior federal government officials addressed concerns on the out-of-court settlement for the Reko Diq project.