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The Mineral Industry of Pakistan in 2014

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The Mineral Industry of Pakistan in 2014 2014 Minerals Yearbook PAKISTAN U.S. Department of the Interior October 2017 U.S. Geological Survey THE MINERAL INDUSTRY OF PAKISTAN By Karine M. Renaud Pakistan is rich in such mineral resources as clays (including Resources in February 2014. Minerals, not including china clay and fireclay), copper, dolomite, gypsum, iron ore, nuclear minerals, such as uranium, are located in special limestone, marble (onyx), salt, sand and gravel, and silica sand; federating units, including federally administered tribal coal, crude oil and natural gas; and precious and semiprecious areas, the Islamabad Capital Territory, and the International stones. Pakistan ranked 3d in world production of iron oxide Offshore Water Territory. The NMP states that Provincial pigments, 10th in world production of barite, and 16th in world governments and federating units are responsible for the production of cement. The country is among the world’s 18 regulation, detailed exploration, mineral development, leading producers of white cement (Kuo, 2014; Global Cement, and safety of these operations and for making decisions 2014d; McRae, 2016; Tanner, 2016; van Oss, 2016). related to these activities. Federal responsibilities include geologic and geophysical surveying and mapping, national Minerals in the National Economy and international coordination, and formulation of national policies and plans. The Federal Government provides Pakistan’s real gross domestic product (GDP) increased by support and advice to the Provinces. Royalties on the 4.1% in 2014 compared with an increase of 3.7% (revised) in mineral commodities produced are determined periodically 2013 owing to an increase in the output of the construction by the respective government and paid to the Provincial sector and expansion of the manufacturing and services sectors. governments, federating units, and the Federal Government Pakistan’s industrial sector accounted for 20.8% of the GDP in (Ministry of Petroleum and Natural Resources, 2013, p. 8, 18). 2014 compared with 20.9% (revised) in 2013. Manufacturing In 2012, the Home Department within the government of accounted for 65.0% of the overall industrial sector output in Sindh Province had imposed a ban on illegal excavation of 2014 compared with 63.0% in 2013; the sector accounted for sand and gravel and precious stones within the Thatta District 13.5% of the GDP, which was an increase of 5.6% in 2014 under section 144 of the Criminal Procedure Code (Cr.P.C.). compared with an increase of 3.5% in 2013. The mining and Police were directed to take strict action against violators quarrying sector accounted for 14.5% of the industrial sector and were authorized to register complaints under section 188 in 2014 compared with 14.7% in 2013, and 3.0% of the GDP of the Pakistan Penal Code for violations of section 144 of in 2014 compared with 3.1% in 2013. The rate of growth of the Cr. P.C. As of 2014, no update on the ban was available the mining and quarrying sector was 4.4% in 2014 compared (Onepakistan News, 2012; Pakistan Newswire, 2012). with 3.8% (revised) in 2013. In 2014, despite the 3.7% rate In January 2013, the Mines and Minerals Department of of growth for electricity generation and distribution and gas Punjab Province awarded 110 fireclay exploration licenses. distribution sectors, Pakistan continued to face power shortages. The licenses awarded used modern equipment to dig and The power shortages had a negative effect on the country’s identify new areas of fireclay resources. In 2014, the Ministry economy and constrained the rate of growth of the GDP. The for Petroleum and Natural Resources, after achieving an Government approved the use of grid-connected solar energy, agreement among all Provinces and finalizing the Model installation of rooftop solar panels, and mortgage financing for Petroleum Concession Agreement and the Model Exploration installation of home solar panels to ameliorate the energy crisis License for onshore natural gas and oil exploration, awarded in Pakistan in 2014. After the World Bank offered to finance 50 petroleum exploration blocks with a total area of the feasibility study for and installation of a transmission line 103,348 square kilometers (km2) to eight companies; 38% of to send electricity to Pakistan from 1,200 megawatts (MW) of the blocks were under exploration by yearend. The petroleum generating capacity in India, a memorandum of understanding concession agreements and the exploration licenses were between the Governments of India and Pakistan was approved by signed by the Minister of Petroleum and Natural Resources in both countries in 2014. The importation of electricity by Pakistan February 2014. Oil and Gas Development Co. Ltd. (OGDCL) from India was expected to start in January 2015 (Ministry was awarded 29 exploration blocks; Pakistan Petroleum Ltd. of Finance, 2013b, p. 7–8, 11; Economic Times, The, 2014; (PPL), 10; Pakistan Oilfields Ltd. (POL), 3; Al-Haj Enterprises Ministry of Finance, 2014c, p. ii; Saeed, 2014). and Oil and Gas Investment Ltd., 2; and Tallahassee Petroleum Foreign direct investment (FDI) increased to $1.75 billion Inc. of Canada, Mari Petroleum Ltd., OMV (Pakistan) in 2014 from $1.33 billion in 2013. Oil and gas exploration Exploration GmbH, and Ocean Pakistan Ltd., 1 each. Of the 50 was of major interest to foreign investors (Asian Development exploration blocks, 21 were located in Balochistan Province, Bank, 2015, p. 172; United Nations Conference on Trade and with a total area of 45,770 km2; 15 were located in Punjab Development, 2015). Province, with a total area of 32,272 km2; 8 were located in 2 Government Policies and Programs Khyber Pakhtunkhwa Province, with a total area of 10,550 km ; and 6 were located in Sindh Province, with a total area of The National Mineral Policy (NMP) of 1995 was amended 14,756 km2 (Associated Press of Pakistan, 2013; Ministry of and implemented by the Ministry of Petroleum and Natural Petroleum and Natural Resources, 2014a, b). PAKISTan—2014 20.1 In February 2014, the Government of Pakistan signed eight fertilizer ($584 million), gold ($28 million), petroleum products additional petroleum concession agreements and eight additional ($7.5 million), and crude petroleum ($4.7 million) (Ministry of exploration licenses with Al-Haj Enterprises (Pvt.) Ltd. for Commerce, 2014; Ministry of Finance, 2014d, p. 122; Pakistan Block No. 3169−4 in Baska North and Block No. 3271−6 in Bureau of Statistics, 2014; Trade Development Authority of Potwar South; OGDCL for Orkzai Block No. 3369−1, Hetu Pakistan, 2014, p. 23, 28, 31−33, 39). Block No. 3170−7, and Zorgarh Block No. 2868−7; OMV (Pakistan) Exploration GmbH and PPL for Margand Block Commodity Review No. 2866–4 and Kuhan Block No. 2867−5; and PPL for Block No. 2569−5 in Khipro East (Ministry of Petroleum and Natural Metals Resources, 2014b). In 2014, Pakistan’s Government awarded China Harbor Copper and Gold.—In 2014, gold was produced at the Works of China a $130 million contract to construct the first Saindak copper and gold mine, which remained the only Pakistan International Bulk Terminal (PIBT) at Port Qasim. The producing copper and gold mine in Pakistan. The Saindak total cost for the construction of the PIBT, including equipment, copper and gold mine, which is located in the Chagai Hills in was estimated to be $250 million. In the first phase, the terminal Balochistan Province, also produced copper. In 2014, despite was expected to handle 12 million metric tons per year (Mt/yr) a reduction in minable ore and increased hardness of ore, the of imported coal, 5 Mt/yr of cement, and 2 Mt/yr of clinker. In Metallurgical Corp. of China Ltd. (MCC) reported production the second phase, the terminal was expected to handle 20 Mt/yr of 13,122 metric tons (t) of copper content. The agreement on of coal. The construction of the terminal was expected to start in mining licenses between MCC and the Government for the 2014 and to be completed in 2016 (Global Cement, 2014c). Saindak copper and gold mine was extended until October 2017 Production (Metallurgical Corporation of China Ltd., 2013, p. 18; 2014, p. 21; Bullion Street, 2014). Production of dolomite increased by 174%; feldspar, by FDI in the Reko Diq copper and gold mining project was 114%; fuller’s earth, by 100%; bentonite, by 95%; antimony estimated to be $3.3 billion; the project was expected to receive and sulfur, native, by 43% each; bauxite (gross weight), by the largest influx of FDI of any project in Pakistan. The Reko 23%; gypsum, by 17%; petroleum, crude, by 16%; soda ash, Diq deposit is located in northwestern Balochistan Province. by 15%; fluorspar, by 12%; fireclay and uranium (processed, Tethyan Copper Corp. (Pvt.) Ltd. (Tethyan), which was a joint U content), by 10% each; and cement, by 3%. Production of venture of Antofagasta plc of the United Kingdom and Barrick Gold Corp. of Canada, owned 75% of the Reko Diq project, phosphate rock (P2O5 content) decreased by 66%; coal, coke, iron ore, and magnesite, by 44% each; chalk, by 38%; kaolin, by and the remaining 25% was owned by the government of Balochistan Province. Tethyan conducted a feasibility study 35%; chromium ore (gross weight and Cr2O3 content), by 28% each; silica sand, by 26%; talc, by 25%; phosphate rock (gross in August 2010; the total mineral resource was estimated to weight), by 15%; ocher and pig iron, by 14% each; marble, by be 5.81 million metric tons (Mt) at a grade of 0.41% copper 13%; and crude steel, by 7%. Data on mineral production are in and 0.22 gram per metric ton (g/t) gold. The economic reserve table 1. was estimated to be 2.17 Mt at an average grade of 0.53% copper and 0.30 g/t gold.
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