ISTANBUL — Local authorities in the Pakistani province of Balochistan refused to meet a Canadian-Chilean mining consortium for talks before rejecting a bid for one of the world's richest deposits of gold and copper, the company says.

The consortium, Tethyan Copper Company Pakistan Ltd., (TCC) expressed its disappointment on Friday after the provincial government shot down an application for a mining license at a remote site in the dry hills near the Afghan-Pakistan border, known as Reko Diq. The Globe and Mail reported trouble with the application earlier this year, with a story that focused on Chinese competitors pushing an alternate plan for what could become the biggest mine in Pakistan.

The latest statement from the consortium, which represents Toronto-based Barrick Gold Corp. and its Chilean partner Antofagasta, suggests that the problems ran deeper than previously understood. Apparently communication broke down between the mining group and the provincial authorities -- not a good sign, because Pakistan's Supreme Court confirmed this year that "this matter falls exclusively within the domain of the government of Balochistan." No matter how much influence the mining companies may exert in the capital, in other words, responsibility for the license falls into the domain of a border province that is notorious for its poverty and lawlessness.

"The GOB [government of Balochistan] has not responded to requests for meetings to resolve the issue, and the rejection notice compromises TCC's preferred route of resolution by negotiation," the company statement says.

The Canadian-Chilean group claims that the rejection is a breach of Pakistani laws and a 1993 joint-venture agreement with the provincial government. TCC says it remains open to talking about the deal, however, and continued touting the potential benefits of the mine: "TCC strongly believes that the Reko Diq project can contribute significantly to the development of a modern, transparent mining industry in Balochistan," the statement said.

The exploration license for Reko Diq expired in February, 2011, and the consortium had been waiting anxiously for a mining license since submitting a feasibility study -- reportedly prepared by SNC-Lavalin Group Inc., of Montreal, at a cost of $220-million.

The company had estimated that annual production in the first five years from Reko Diq could have amounted to 100,000 ounces of gold and 150 to 160 million pounds of copper. None of the assets were counted among Barrick's proven reserves.

If the rejection proves final, Chinese companies will become the frontrunners to replace TCC. Chinese interests are already developing a smaller mine nearby at Saindak, and provincial authorities have previously told The Globe and Mail that the Chinese are offering something they eagerly want: a processing facility that would handle some of the raw material inside Balochistan.