Five mineral projects picked for investment
Pakistan has identified five potential mineral projects that it will offer to the United Arab Emirates (UAE) for investment and development. In this regard, the two sides will sign a deal to formalise their partnership.
According to sources, the five mineral projects have been selected in Chagai, Waziristan and Gwadar.
Among these include Balochistan Mineral Resources Limited's copper blocks EL-302 and EL-303 in Chagai. Separately, in the area, the Reko Diq copper and gold mining project is also being implemented. Pakistani and foreign companies have collaborated and inked a deal for drilling the Reko Diq mine where gold and copper deposits worth billions of dollars are believed to be present.
Other mining blocks include Frontier Works Organisation's (FWO) copper blocks EL-207 and EL-320 in Chagai, its copper blocks ML-30 and EL-101 in Waziristan and a copper smelter in Gwadar having capacity of 50,000-80,000 tonnes per year.
Sources said that the government had planned to build a rail network to connect Gwadar and Chagai. These projects may be brought in a marketable template for conducting pre-feasibility studies, in collaboration with consultants, sources said, adding that consultations on a term sheet shared by International Resources Holding Company would be finalised by Mari Petroleum Company and the government of Balochistan in a working group.
For the Reko Diq project, Barrick Gold Corporation has been conducting feasibility studies in Chagai district, Balochistan for the past two years. It is expected to complete the study by the end of this year, which will pave the way for kicking off mine construction in 2025. Mining operations in the Reko Diq block are likely to commence in 2028.
Barrick Gold is looking for funding for the project and has got assurances from some foreign donors. Pakistan is also locked in talks for establishing a mining fund worth $1 billion in collaboration with the Gulf Arab state of Kuwait. A state-owned company of Pakistan has been designated as the lead entity for cooperation with Kuwait in creating the mining fund.
Initial deliberations have been held and a Kuwaiti company has shown interest in mining for metals and minerals used in renewable energy. Sources said the government was working on a harmonisation and regulatory framework for the mineral sector to woo foreign investors to pump capital into Pakistan.
The framework was scheduled to be drawn up by June 2024 but the Petroleum Division could not finish work and got an extension in the deadline. The government is considering a proposal that calls for setting up a dedicated Mines and Mineral Division, which will help develop the mining sector in Pakistan.
In this context, the Ministry of Energy (Petroleum Division) is holding discussions with varying stakeholders to set out a clear course of action. The federal government is bringing provincial governments on board and in relation to that it has begun a performance review of federal and provincial entities in the mineral sector.
Provincial governments have been asked to provide relevant data of mineral-sector entities for completing an audit so that initiatives could be undertaken to bring about further improvement in the country's mining sector.