Pakistan Mining Updates

[ghazi52]

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Minerals & Mining

Pakistan has the world’s second largest salt mines, fifth largest copper and gold reserves and second largest coal deposits, as well as estimated billions of barrels of crude oil. Despite having this huge potential, contribution of mineral sector to Pakistan’s GDP is around 3% and country’s exports are only about 0.1% of the world’s total. In the year 2017,

Pakistan’s total mineral exports were 0.5 Billion USD as compared to the world’s 401 Billion USD. KPhason its inventory several varieties of Gems, Metallic Minerals, Rare Earth Minerals, Marble / Dimension Stone (50 types) and Industrial Minerals. The spread is almost all over KP landmass, especially in Northern areas and NMDs.

Total mineral’s worth of KP is estimated to be around Rs 200 trillion. Dimension stones reserves are estimated to be around 3 Billion tons, amounting to approximately 78% of the total estimated national reserves, whereas Gems, Metallic Minerals, Industrial Minerals are estimated to be around 10 Billion tons in NMDs alone, amounting to be 20% of the estimated national reserves.

KP mineral development policies and regulations put in place in year 2017 have started to pay dividends and present production of minerals in KP is around 40.2 Mn Tons per year. The revenues have increased from approximately Rs 2.1 Billion in year 2018-19 to Rs 8.2 Billion in year 2021-22 with 61% increase in a short period of 3 years. However, in complete province, very few Joint Ventures are undertaken – including FWO’s signature Muhammad Khel Copper Mining Projectin Boya North Waziristan District. As per mining experts, this area can be developed into a “Copper City”.Mining value chain explains that mining duration from small scale to large scale can be anything from 3 to 9 years. Hence in times to come small-scale mining activities will form the major share of mining?

In KP, huge amount of minerals are extracted in raw form and exported as such. The province has at present no ability to carry out value addition or produce a finished product. It is unfortunate that up till now, even after 75 years of independence, no worthwhile mineral-based industry could be established in the country except marble and ceramic. Not a single reputable gold or jewelry related manufacturing / refinery setup exists in Pakistan. The mineral potential of KP especially NMDs, if taped properly, can address its own and Pakistan’s financial woes.


Author: Lt Gen Hassan Azhar Hayat, Commander 11 Corps

 

[SoulSpokesman]

@ghazi52

Ghazi sb,

This is with reference to the article above. When a Jarnail of a country starts writing about the mineral reserves it tells you what is wrong with the way a country/economy is run.

Regards

 

[ghazi52]

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NMD students complete special mining training​

Three-month training sponsored by FC North in collaboration with FWO

Correspondent
June 16, 2023

The Construction Technology Training Institute (CTTI) in Islamabad on Friday held a certificate distribution ceremony for students of the former Federally Administered Tribal Areas (Fata) after they completed a special train course sponsored by the security forces.

Frontier Corps (FC) North, Khyber-Pakhtunkhwa (K-P), in collaboration with Frontier Works Organisation (FWO) sponsored mining training of youth in newly merged districts.

Two short-term courses were taught at the Construction Technology Training Institute (CTTI) in Islamabad catering to the youth of Bajaur, Mohmand and Khyber.

As a result, the students were able to benefit from the training course free of cost, in addition to the accommodation facilities provided to them that were also covered.

At least 50 students from all three districts participated and, subsequently, successfully completed the three-month programme which started on April 1.

On successful completion of the training, a certificate-giving ceremony was held at CTTI Islamabad.

Inspector General FC North and Director General FWO distributed certificates among the students.

Notably, upon the success of the courses, FC North is set to sponsor another batch of students at CTTI for additional training programmes starting June 15.

Previously, a total of 150 students from Bajaur, Mohmand, Khyber and Chitral were selected to participate in these courses.

The region remains in desperate need of support and infrastructure as it recovers from years of conflict and terrorist activity.

This month, tribal elders from the newly merged districts had demandedof the federal government that development funds of the merged districts including those of the Accelerated Implementation Program (AIP) should be released without any delay so that long-lasting issues and deprivations of the tribal districts could be addressed.

They said that the merger of erstwhile Fata into K-P was no doubt a good step, but the newly merged districts were still suffering from multiple challenges needing special attention from both the federal and provincial governments.

It may be noted that for the fiscal year 2022-23, the federal government had initially allocated Rs50 billion for the merged districts of K-P, including Rs30 billion under the 10-year erstwhile FATA Development Plan.

Earlier this year, however, the federal government had taken over control of the Rs50 billion budget meant for the merged districts of erstwhile FATA in K-P.

 

[ghazi52]

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https://twitter.com/x/status/1669615749604810753

 

[ghazi52]

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MARI granted license to explore minerals in Chagai, Balochistan​

• Grant 'in line with its strategy to diversify into near core areas and its commitment to contributing to the growth of the mineral mining sector'

BR
August 25, 2023

Mari Petroleum Company Limited (MARI), one of Pakistan’s largest energy and exploration companies, has received approval for mineral exploration in Chagai, Balochistan.

MARI shared the development in its notice to the Pakistan Stock Exchange on Friday.

“The Directorate General Mines & Minerals Balochistan has granted an Exploration License (EL-186) and allotted an area of 501 sq. km to Mari Petroleum Company Limited for mineral exploration near Dalbandin, District Chagai, Balochistan,” read the notice.

MARI said that the grant is in line with its strategy to “diversify into near core areas and its commitment to contributing to the growth of the mineral mining sector of Pakistan”.

The mining sector has recently been in the limelight as authorities seek to attract foreign investments in the largely unexplored sector.

Earlier this month, Islamabad conducted the first Pakistan Mineral Summit to attract international investors interested in the country’s mining sector. This was attended by Barrick Gold Corporation CEO and President Mark Bristow, Saudi Mining Minister Engineer Khalid bin Saleh Al Madifar and other investors.

Chief of Army Staff General Syed Asim Munir had said at the time that the summit had laid down new rules for ease of doing business for domestic and foreign investors in the country.

“We will ensure an investor-friendly system that avoids unnecessary delays and provides easy terms and conditions for business. There are vast mining opportunities in our country which will be realized through joint efforts.”

 

[ghazi52]

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Pakistan’s first mineral processing project in Balochistan eyes $250mn exports​

• Balochistan government signs joint venture agreement with Platinum Mining Company to develop country’s first mineral processing project in the province

Bilal Hussain
August 31, 2023

 

[ghazi52]

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MCC proposes Export Processing Zone and Mineral-based industrial park in Pakistan​

By Fatima Javed
Oct 24, 2023

ISLAMABAD - To facilitate and improve the mineral sector of Pakistan, the China Metallurgical Group Corporation (MCC) suggested the establishment of an Export Processing Zone (EPZ) for metal mining and the creation of a mineral-based industrial park in Pakistan.

The proposal was given during the high-level meeting of MCC with Chairman Senate, Muhammad Sadiq Sanjrani, in Beijing on Monday.

The initiative would generate numerous job opportunities and contribute to the nation's foreign exchange earnings.

The Senate of Pakistan’s official notification stated that the meeting, centered on enhancing cooperation and collaboration in the mineral sector, resulted in a range of significant developments and promises of continued partnership.

Delegates from both sides engaged in discussions surrounding matters of mutual interest while acknowledging the vital role of mineral resources in the economic growth of Pakistan. In a demonstration of unwavering support, Chairman Senate assured MCC of his full support in promoting the mineral sector in the country.

The meeting witnessed the proposal of a groundbreaking new project in Chagai, operating under the auspices of an Export Processing Zone (EPZ). Chairman Senate expressed his anticipation of this project becoming a landmark endeavor, reminiscent of the success of the Reko Diq, which will significantly contribute to Pakistan's economic development.

In a testament to the importance of this project, Chairman Senate pledged to invite key officials, SIFC representatives, and the MCC Chief to the grand launch event in Chagai.

The MCC delegation reaffirmed its commitment to Pakistan, indicating a willingness to invest further in the mineral sector, with a special emphasis on Balochistan and Khyber Pakhtunkhwa.

 

[ghazi52]

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With nearly $100M in investment, Chinese company MRDL just completed the on-load trial run of its 2.75 megaton per year Concentrate Expansion Project at Saindak Copper-Gold Project in Balochistan, ready to bring more jobs and momentum to local economy.

 

[ghazi52]

World Bank investment arm commits $300mn loan to Pakistan’s Reko Diq mining project​

Reuters | BR Web Desk
April 10, 2025


The World Bank’s private investment arm, International Finance Corporation (IFC), will provide $300 million in debt financing for Pakistan’s Reko Diq copper-gold mining project, an IFC disclosure said on Wednesday.

Reko Diq is one of the world’s largest copper and gold deposits, located in the Chagai District of Balochistan, Pakistan.

Barrick Gold owns a 50% stake in the Reko Diq mine and the governments of Pakistan and the province of Balochistan own the other 50%.

Addressing the attendees at the Pakistan Minerals Investment Forum on Tuesday, Barrick Gold’s CEO Mark Bristow said that the Reko Diq copper and gold project would become a “beacon that leads Pakistan” on the global mining map,

He informed that in 2024 the feasibility study of Reko Diq was completed, which revealed that the mines have 15 million tons of copper reserve and 26 million ounces of gold.

“This mine is set to become one of the lowest-cost copper producers in the world,” he said.

Meanwhile, the World Bank plans to invest $2 billion annually in Pakistan’s infrastructure over the next decade.

 

[ghazi52]

Pakistan Minerals Investment Forum​

Editorials
April 10, 2025

The two-day Pakistan Minerals Investment Forum attracted foreign as well as local investors with Prime Minister Shahbaz Sharif focusing on easing their legitimate economic concerns and the Chief of Army Staff (COAS) Gen. Asif Munir easing their legitimate security concerns.

The Prime Minister correctly pointed out to the massive mineral resources that exist in Balochistan and the COAS pledged robust security framework as well as proactive measures to safeguard the interests and confidence of investors – local and foreign.

The number of Memoranda of Understanding (MoUs) signed on the first day of the conference was reported though the exact amount of envisaged investment was not released

Reko Diq, known to be one of the largest untapped copper-gold reserves in the world, was singled out by the Prime Minister as a success and he praised Mark Bristow, President and Chief Executive Officer of Barrick Gold, for re-energizing the stalled project.

In this context, it is relevant to note that the contractually agreed ownership of Reko Diq was behind a flurry of litigation/opposition and the reason behind the project’s inordinately delayed implementation.

Today, the ownership as agreed is as follows: 50 percent by Barrick, 25 percent by three federal state-owned enterprises, 25 percent by the Government of Balochistan of which 15 percent is on a fully funded basis and 10 percent is on a free carried basis.

The mining company, on its website, acknowledges that “the reconstitution of the Reko Diq project was completed in December 2022 – a key step in progressing the development of Reko Diq into a world-class, long-life mine which would substantially expand Barrick’s strategically significant copper portfolio and benefit its Pakistani stakeholders for generations to come.”

The time-line indicates that several administrations failed to resolve issues pertaining to this key mineral project, issues ranging from legal, political as well as provincial versus federation challenges, and their resolution was a matter of priority for the past four to five years – a priority that culminated in the 2022 deal.

The lesson learned is obvious: administrations must proactively continue to implement projects undertaken by previous administrations in the national interest and ensure seamless transition of one administration with the next by ensuring implementation of agreed non-negotiable contracts.

In Pakistan, however, it bears considering that many contracts are signed without due process and without due diligence by the relevant ministry, which accounts for the proliferation of litigation in domestic courts with the aggrieved foreign investor compelled to take the matter to the international arbitration where Pakistan has lost many a case that cost the country hundreds of millions of dollars.

It is therefore critical that any deal extended to any investor, local or foreign, must be carefully vetted by a team of competent officials aware of all relevant provincial concerns as well as lawyers proficient in this aspect of the law.

It is important to note that there exists evidence that the country’s economy has yet to pick up with a stalled growth rate that is compromising its capacity to meet the revenue targets agreed with the International Monetary Fund (IMF) – a 703 billion-rupee shortfall in revenue has been acknowledged by the Federal Board of Revenue (FBR) for the first eight months of the year – an outcome of the severely contractionary monetary and fiscal policies in place as part of the ongoing IMF programme.

The element of existing foreign investors in the country being unable to repatriate their profits as contractually agreed, given that the rise in the foreign exchange reserves totals about as much as the agreed rollovers with the three friendly countries, has also been reported widely.

True that the first staff level agreement has been reached with the IMF yet reports indicate that the government has pledged to the Fund team higher existing taxes in the budget for next year, largely indirect taxes whose incidence on the poor is greater than on the rich, which would further contract the growth rate.

True that the discount rate has been halved since April last year and inflation is negligible but the discount rate even today is double that of our regional competitors and the benefit of low inflation has not improved the quality of life simply because incomes have remained static since 2020, except for the 7 percent of the total employed by the state whose salaries are paid by the taxpayers, which accounts for disturbingly high 44 percent poverty levels in the country today.

Last but not least, with terror attacks on the rise due to the recalcitrant Afghan Taliban coupled with serious law and order issues in Balochistan and the slow pace of economic structural reforms are factors that may impede the translation of the MoUs to contractually binding agreements.

One would hope that pledges be accompanied by a change in the ground realities that would play the key role in fueling foreign investment not only in the mineral sector but also in other sectors.

Copyright Business Recorder, 2025

 

[ghazi52]

First-phase of development funding approved for Reko Diq, $74 billion economic boost expected​

BR Web Desk
April 13, 2025


The Reko Diq project has advanced to a crucial development stage following the approval of first-phase funding based on a comprehensive feasibility study, as reported by the state-run Pakistan Television (PTV).

The project is expected to generate an estimated $74 billion in free cash flow, significantly contributing to Pakistan’s economy.

During the Pakistan Minerals Investment Forum 2025, international investors expressed strong interest in Reko Diq and other mineral reserves, highlighting the growing confidence in Pakistan’s mining potential.

The project, a joint venture between Barrick Gold, the government of Pakistan, and the government of Balochistan, will see its annual processing capacity double from 45 million to 90 million tons by 2034.

The project will create 4,000 long-term jobs for locals and employ 7,500 workers during the construction phase.

Reko Diq copper and gold project is expected to lock in upwards of $2 billion in financing from international lenders, with term sheets signed by early Q3, its project director for the mine told Reuters.

The financing for phase one of the project, which is expected to start production in 2028, is being discussed with multiple lenders.

 

[ghazi52]

Pakistan’s salt exports to China surge 40% in Q1 2025​

Industry analysts credit the rise to improved logistics, competitive pricing, and stricter quality controls

News Desk
April 21, 2025

PHOTO: FILE

Pakistan’s salt exports to China experienced a notable 40% increase in the first quarter of 2025 compared to the same period last year, according to data released by China’s General Administration of Customs (GACC).

From January to March 2025, Pakistan exported over 13.64 million kilograms of salt to China, amounting to $1.83 million in value.

During the same period in 2024, exports totalled $1.30 million. The growth reflects strengthening trade relations between the two nations under the China-Pakistan Economic Corridor (CPEC) framework and China's rising demand for high-quality industrial and edible salt.

Ghulam Qadir, Trade and Investment Counsellor at Pakistan's Embassy in Beijing, told international newspaper that the salt was exported under three main categories: edible salt, pure sodium chloride, and other salt variants.

Industry analysts credit the rise to improved logistics, competitive pricing, and stricter quality controls implemented by Pakistani exporters.

China’s increasing consumption of salt, particularly in its chemical, pharmaceutical, and food processing industries, has also played a key role in driving demand.

A senior official from the Trade Development Authority of Pakistan (TDAP) described the development as a "positive indicator" of Pakistan’s growing capacity to meet international demand and diversify its export portfolio.

The uptick in salt trade further cements Pakistan’s position as a reliable supplier in the Chinese market, and aligns with broader goals of enhancing bilateral trade under CPEC initiatives.