Overview
The Tethayan Tectono-magmatic and Metallogenic Belt creates a globally recognized porphyry copper-gold and base metals mineralized zone through the areas it passes. Closer to home, the Tethyan Belt straddles western Pakistan making the country home to one of the world’s most significant porphyry copper-gold mineral reserves. This mineralized zone endowed by the Tethyan Belt encompasses about 2,200 kilometres of the country. Consisting of the Chagai Magmatic Arc this area carries promising geology with commercially feasible prospects through which numerous exploration and development mining projects can be founded. This is also where Reko Diq, one of the largest global copper-gold fields is located.
SUCCESS STORIES.
Saindak Copper-Gold Project (PPL)
The Saindak Copper-Gold project is located at a distance of 35 km from Pakistan's border town Taftan and 325 km from the city of Dalbandin in Chaghai District, Balochistan. Saindak project was the first metallic mineral project in the country. Saindak Metals Limited signed an agreement in 1990 with M/S China Metallurgical Construction Corporation (MCC), China for construction of Saindak Copper Gold on turnkey basis.
Pakistan’s first metal mineral project
Developed by Government of Pakistan with total cost of PKR 29 billion
4.25 million tons of ore extracted per annum
4.15 million tons of ore treated per annum
20,000 tons of blister copper obtained per annum
90 million tons of copper ore mined from South and North Ore bodies
Produced 1.40 million tons of copper concentrates since inception
Direct Employment: 1,800
Exported to many countries including China, Korea, Japan, Poland
Duddar Lead-Zinc Project
Duddar lead-zinc project is located in Duddar, District Lasbela in Balochistan. Pakistan Mineral Development Corporation (PMDC) uncovered the potential of millions of tons of zinc and lead ore in Duddar area of Khuzdar District of Balochistan. The project has been developed by the MCC Huaye Duddar Mining Company of China and started commercial production in 2015.
First underground metal mining project in Pakistan
Developed by MCC Huaye Duddar Mining Company (Pvt) Ltd with $110 million
Ore mining capacity: 500,000 tons per year
Lead concentrates: 20,000 tons
Zinc concentrates: 80,000 tons
Direct Employment: 1000 people
Thar Coal Block-I – Sino-Sindh Resources Limited
Sino-Sindh Resources Limited, China holds a 30-year mining lease for coal mining at Thar coal Block-II. This Block holds lignite coal resources of approximately 3.5 billion tons suitable for power generation. The company has made an investment of USD 1 billion to develop a mine of 7.8 million tons with an integrated power plant of 1,320 MW. Commercial production and power generation has been started in the beginning of the current year.
40 billion cubic feet overburden removed
3.25 million tonnes coal extracted till date
2804 GWH electricity generated
Total investment of USD1,000 million for coal mining & power generation
Coal Mine capacity 7.8 million tons per annum
Power generation 1,320 MW (2x660MW)
Thar Coal Block-II – Sindh-Engro Coal Mining company
Sindh Engro Coal Mining Company (SECMC) is Pakistan's leading coal producer operating Pakistan's first open-pit lignite mine located in Thar coalfield Block-II in Tharparker District. The company is a joint venture between the Government of Sindh and local conglomerate Engro Corporation. The company is producing 7.6 million tons of lignite to supply coal to four power generation plants of 330 MW each. Mine expansion at a cumulative capacity of 11.2 million tons per annum is underway.
Pakistan’s first large-scale open-pit coal mining and power integrated project
Mining lease over an area of 95.50km²
Phase I: 3.8 million tons per annum (completed)
Phase II: 7.6 million tons per annum (completed)
Phase III: 12.2 million tons (under construction completion expected by 2024)
Supplying coal to mine mouth power plants of 1320 MW (4x330 MW)
Generated direct employment of 5,000
Boya Muhammad Khel
Boya, Waziristan copper project is a signature project developed through indigenous resources. This is the second copper project after Saindak located at a distance of approximately 30 km from Miranshah tehsil. Frontier Works Organization through its Special Purpose Vehicle (SPV), Degan Exploration Works (DEW) has initiated the exploration and mining operations in 2016. After Saindak, Boya Project is the second copper mining and beneficiation project in Pakistan constructed with total investment of PKR4,000 million.
Approx. 2.6 million tons of waste has been removed
Produced 1 million tons of ore so far
copper beneficiation plant has the capacity to process 1,500 tons per day
15,000 tons of copper concentrate produced
Reko Diq Copper Project
Reko Diq Copper-Gold Project is a one of the largest copper-gold projects situated in the District Chagai, Balochistan. The project is being developed by the Reko-Diq Mining Company, a joint venture of the Barrick Gold 50%, Government of Pakistan through its State Owned Enterprises (OGDCL, GHPL, PPL) 25%, 15% by the Province of Balochistan through its entity Balochistan Mineral Resources Limited. The copper resources at Reko Diq have been estimated to 5.9 billion tons with expected life of at least 40 years. The company is updating and expanding feasibility study and is expected to be completed by 2024 with target production in 2028.
UPCOMING PROJECTS.
Barite Lead-Zinc
Bolan Mining Enterprise is a joint venture between Government of Balochistan and Pakistan Petroleum Limited each with a 50% working interest. The company carried out detailed exploration work and established a resource of 69 million tons of Barite-Lead-Zinc in Gunga, District Khuzdar. Mine planning and financial close is underway.
Feasibility study completed
Resources estimated to 69 million tons (JORC)
Exploration and resource drilling ~12,000 metres
Mine planning of 2.5 million tons ore production per annum
Capex ~ 150-200 Million USD
Projected IRR: >53%
Projected NPV@12%: > $357m
4 years payback period expected
$140m and $230m peak annual revenues
Chiniot Iron Ore
Punjab Mining Company (PMC) was established in 2009. PMC is the specialised mineral sector entity of the province of Punjab. Chiniot Iron Ore project is located in Chiniot District well connected with rail line, motorway, highway and adjacent to the Special Economic Zone. Iron ore resources have been estimated at 250 million tons at NI 43 101 Canadian standards.
Iron Ore Resource of ~ 250 million Tons @ 27% TFe is available at Chiniot
NI 43 101 Compliant Resource Report
Mine Capacity planned 4.2 Million tons per annum
Steel Mills 01 Million Tons per annum
Estimated investment cost USD 1.3 Billion
Expected IRR >20%
Connected with Rail line, Motorway, Highways, and adjacent to
Special Economic Zone
Thar COAL BLOCK-VI - ORACLE POWER PLC
Oracle Power Plc, through its subsidiary Sindh Carbon Energy Ltd ('SCEL'), holds a mining lease of Coal Block VI in the Thar coalfield. The lignite coal resources have been estimated over 1.4 bn tonnes of JORC compliance. In 2016 the Project was elevated to priority project status in CPEC and at the 9th JCC meeting in 2019 incorporated into an oil & gas group. The resource has a number of development paths including mining the coal as feedstock for the proposed mine mouth power plant; direct sale of the coal to other power projects; gasification of the coal to produce urea/fertiliser and liquids. Feasibility study has been completed and company is in process of financial close.
POTENTIAL INVESTMENT.
Thar Coalfield
The Thar Coalfield is located 380 kilometres east of Karachi. It covers an area of 9,100 square kilometres, with a total lignite resource in excess of 175 billion tonnes. A portion of coal resources have been divided in 12 coal blocks out of which three blocks have been allocated to local and international companies for mining, power generation and gasification. Other Coal Blocks are available for investment.
Copper Prospects In Chagai
Geologically, District Chagai is placed in the magmatic arc system. Many copper occurrences like Saindak, Reko-Diq, Koh Dalil, Mashki Chah, Drbanchah, Amuri, Yakmach, Ziarat Pir Sultan, Kabul Koh, Dasht Kain, Amir Chah are located in this District. Being part of the Tethyan Metallogenic Belt, Chagai is considered to be one of the potential areas for copper and gold deposits. Hydrothermal alterations are apparent in a number of localities, associated with the Miocene age porphyries. The alteration patterns are very similar to those found around the Reko Diq Porphyry system. Different copper blocks have been delineated based on the surface geochemical sampling and are available for investment/joint venture.
Barite-Lead-Zinc Khuzdar
The Lasbela-Khuzdar area is a rich host of diverse mineral deposits, each occurring in distinct geological settings. This geological belt holds immense potential for substantial quantities of Lead-Zinc and barite, with estimates reaching hundreds of thousands of tons. The prominent areas with high potential include Sekran-Malkhor, Gunga, Surmai, Bhimbari, Chili, Kundi, Hunurki Nala, Duddar, and Bankri. While mining in the Duddar area is under production since 2015 and a feasibility study has been completed in the Gunga area establishing 69 million tons of barite-lead-zinc. There is immense potential in the adjoining areas of these projects. An exploration licence covering an area of 200 km² is available for potential investment / joint venture.
ASSOCIATED PROJECTS.
COAL GASIFICATION/LIQUEFACTION
Increasing agricultural yield is important to cater for the rapid growth in population. The country cannot afford impediments in agricultural growth. Fertilizer industry is key to sustaining gricultural output at 24% of the national GDP and plays a vital role in ensuring national food security. Indigenous gas resources for manufacturing urea are depleting rapidly and imports of LNG or urea are very expensive besides outflow of foreign exchange. The viable alternative is coal gasification for urea manufacturing and other chemical extraction. According to reports, Pakistan's fertilizer demand has always remained higher than its supply. However, with the advancement of technology and increased number of players in the industry, production capacity has increased to approx. 9 million tons per year, which has consistently surpassed the national demand over the last few years. The fertilizer manufacturing association comprising 07 companies are interested in conversion of Thar coal for gasification and urea production. The business venture can be considered on a B2B basis. A prefeasibility study to ascertain suitability of Thar Coal for gasification and extraction of chemicals and petroleum products was conducted by the Petroleum Division through M/s Sasol-Lurgi Consortium of South Africa. The study reveals that Thar Coal is suitable for gasification.
THAR COALFIELD RAIL CONNECTIVITY
Coal production from Thar coalfield is expected to increase in the coming years on expansion of existing mines at Block-II. Currently, coal production from Thar is utilized by mine-mouth power generation plants. Propositions are also under consideration to increase the share of indigenous coal utilization through blending Thar coal with imported coal for Sahiwal, HUBCO, Port-Qasim and Jamshoro power plants. Moreover, Thar coal is being used in cement manufacturing plants on a trial basis. The encouraging results of blending of indigenous coal with imports for the power and cement sector has opened a new venture of Thar rail connectivity for transportation of coal on mass-scale. The proposed route is 105 km from Thar to the existing railway line at Chor, Sindh. The pre-feasibility study has been completed. BOO, BOT, BOOT investment models can be considered.
Assembling Plant for Mining Machinery
Mining sector of Pakistan comprises small-scale and a few largescale projects including Thar coal, Saindak and Reko-Diq copper-gold, Duddar lead-zinc and limestone quarries for cement manufacturing. The raw material haulage method in these largescale mining operations (except Duddar) is undertaken through dump-trucks. Earthmoving machinery mainly used in mining and civil works and imports of such machinery is increasing in the country and will further increase on development of Reko-Diq project, expansion of Thar coal projects and installation of new cement manufacturing units in KP and Punjab. As reported by Pakistan Bureau of Statistics, last year imports data of selected offroad machinery items is given as under:
Adequate agriculture and construction machinery units are working in the country. A B2B model can be adopted for installation of Assembly-line for earth-moving machinery for mining and construction operations.