Ahmed Khan Malik

The country’s first-ever mineral processing project would be established in Balochistan to help realise the potential of the province’s mineral sector. Balochistan – blessed with enormous mineral resources – is in the limelight these days after local and foreign investors have shown interest in exploiting its mineral sector.  The Special Investment Facilitation Council (SIFC), a civil-military body, which was established recently, has also focused on the province’s mineral sector for attracting investments. In this regard, Platinum Mining Company (Private) Limited (PMCL), a private sector firm, recently entered into a Joint Venture agreement with the government of Balochistan to execute the country’s first mineral processing project.  Under this agreement, raw fluorite ore would be converted into acid-grade calcium fluorite that will be sold as a feedstock to many chemical industries internationally. 

This agreement will be particularly beneficial for the small and medium enterprise sector. Currently, Pakistan exports raw ore at a bare minimum price that is converted into valuable products like steel, chemicals, and ozone-friendly refrigerants in countries like China, Turkey, USA, etc. and is re-purchased by Pakistan at extremely high prices. According to research conducted by the Lasbela Chamber of Commerce and Industry and PMCL, the average available fluorite resource in the district of Loralai is found to be 1.6 million tonnes. Under the agreement, PMCL will start its extraction in the region and convert this raw ore into acid-grade calcium fluorite in its production facility to be installed in Hub. Balochistan Mineral Resources Limited (BMRL), which is the provincial government’s organisation, will enjoy a share of 5% of the profits without having to invest in the project.

According to BMRL managing director Saeed Sarpara, the JV agreement, which is worth Rs3 billion, would also explore the avenues of value-addition.  He said as Pakistan was not an export-oriented country at the moment, this agreement was a steppingstone that would be a gateway for establishment of new industries, enhancement of trade value through exports of value-added products and tapping new regional and export markets. He said the Balochistan government was devising a new mineral policy that will be investor-friendly and contribute positively to the province’s betterment. He said the Hub project was Pakistan’s first-ever mineral value addition project. He said that PMCL was the first private sector entity to invest in the project, thus sharing the provincial government’s vision of industrial development.

Credit: INP-WealthPk