Small-scale miners need government support in the form of subsidies for installation of smelting and processing units, which will not only turn the mining sector into a sustainable income-generation hub but also increase the sales of value-added products, reports WealthPK. Abdul Bashir, Chief Geologist at the Balochistan-based Koh-e-Daleel Minerals Company (Pvt) Limited, said this while talking to WealthPK. He said, “Establishment of a smelting and processing unit means a new formation of a value chain providing livelihood to at least 2,000 people, directly or indirectly. A good number of people in Pakistan are related to the mining sector after agriculture. These units cost much to small-scale miners; therefore, government support is necessary for import of smelters and processing units at subsidized rates or without paying any duty. A group of miners can afford it by joining hands.” “Trade of unprocessed minerals at both domestic and international levels does not benefit the mining community but processed products earn them handsome profits. Currently, only large-scale mining units have this facility, but it is not available for an average or small-scale miner.

A local processing unit usually processes at least 500 tons [of raw material]. “Installing more units will help decrease the unemployment rate to a great extent. So, government support for installation of these units will not only stabilize the business of small-scale miners but also break the monopoly of large groups. “The government must consider this critical issue and frame policies to support the installation of these units so that the indigenous mining industry may flourish, benefiting the country,” he said. Talking to WealthPK, mining engineer and General Secretary of the Institute of Mining Engineers Pakistan, Muhammad Yousaf said, “Definitely, easy loans, small grants, low taxes, and import duties are all things that can help the miners install the smelters and processing units to add value to the raw products. Smart support from the government side will help make the mining sector more productive, innovative, and sustainable. Right now, owing to heavy costs, a good number of miners can’t truly benefit from the mining outcrop due to which they have to sell their product in the raw form.”

Discussing the importance of government support in installation of smelting and processing units, miner and gemmologist Imran Babar said, “The mining sector of Pakistan has huge economic potential if provided with the proper facilities, support, and grants from the government. Smelters and processing units act like a backbone. Unfortunately, they are expensive, and a multitude of taxes and import duties makes the situation even worse. Therefore, government support is necessary. Increasing the number of these units will increase the employment rate and generate revenues.” “Currently, sizeable quantities of mined products are exported in raw form, fetching little foreign exchange. Therefore, installing more smelting and processing units will increase the export volume of value-added mining products.”

Credit: Independent News Pakistan