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Pakistan's Mineral Resources: Untapped Potential for Economic Growth

Pakistan's Mineral Resources: Untapped Potential for Economic Growth

By Dr Sajjad 

Pakistan's geological and tectonic marvels have woven a tapestry of extraordinary mineral occurrences across the country, revealing the untold potential hidden beneath its surface. The collision of tectonic plates and the intricate interplay of plate boundaries have created a geological symphony, transforming the landscape into a treasure trove of diverse mineral deposits. Remarkably, these untapped treasures have remained largely unexplored, presenting a remarkable opening for visionary investors eager to unveil the nation's concealed wealth. Within Pakistan's mineral-rich terrain lies a vast reserve of possibilities, waiting to be discovered and developed. From precious metals like gold and silver to base metals such as copper, lead, zinc, and nickel, the potential for substantial returns on investment is unparalleled. The alluring landscapes of Balochistan, Khyber Pakhtunkhwa, and Gilgit-Baltistan shimmer with gems of exquisite beauty, captivating the hearts of collectors and connoisseurs around the world.

The Chaghai Metallogenic Belt, located in the southwestern region of Balochistan, is an integral part of the world-renowned Tethyan Metallogenic Belt. This belt has showcased its mineral wealth through remarkable discoveries of substantial copper and gold deposits in Saindak and Reko Diq, solidifying the belt's exceptional endowments. The geological and tectonic setup in the surrounding areas of these discoveries mirror the conditions conducive to abundant metallic minerals. In light of these findings, it is imperative for visionary investors from around the world to consider generous investment into detailed prospecting and subsequent mining activities. Aeromagnetic surveys, supplemented by ground geophysical surveys, have already identified numerous anomalies, serving as promising indicators for the presence of valuable metallic minerals.

North Waziristan, another region in Pakistan, boasts significant copper deposits. The area holds estimated reserves of around 500 million tons of copper ore, with ore quality ranging from 0.5% to 1.5% copper content. These untapped resources offer immense investment potential for mining ventures, contributing to Pakistan's mineral production capabilities and supporting economic growth.

Iron ore, a crucial mineral for the steel industry, is found in various regions of Pakistan. The Iron Oxide Copper Gold (IOCG) type deposits in Punjab plains (Chiniot-Rajoa  area) , with reserves of over 250 million tons of Iron Ore (80% Magnetite, 20% Hematite) and over 30 million tons of Copper Ore (Chalcopyrite & Malachite) , stands as a prime example. The project has undergone detailed feasibility studies and techno-economic analyses, making it a viable investment opportunity for mining, processing and establishment of mine mouth Steel mills with production capacity of 1 million ton per annum. With investment of USD 1.3 billion, the proposed project offers internal rate of return (IRR) of about 20% with 09 years pay back time. Raw materials for the processing such as limestone and coal are locally available whereas the project site already has all the logistics and modern day amenities. Similarly, Kalabagh (Punjab), holds estimated reserves of over 300 million tons of iron ore. Located on the banks of the Indus River, the deposit site is in vicinity of CPEC western route (M-14)

Balochistan has iron ore reserves of 273 million tonnes. Several deposits of iron ore have been found in the Chagai district of Balochistan. Most of these are fairly rich in iron but small in size. Notable deposits of iron ore occur at Pachin Koh, Chigendik, and Chilgazi in the Chagai district and Dilband area of Kalat district. Moreover, the largest reserve in Dilband/Mastung of 200 million tonnes.

Chromite, a vital industrial mineral, is found in abundance in Balochistan. The estimated reserves exceed 200 million tons, with chromium content ranging from 30% to 50%. Investing in the establishment of a ferrochrome plant in Northern Balochistan can yield the investors attractive returns.

Rock salt, an essential industrial mineral, is available in significant quantities in Pakistan. The country has estimated reserves of over 10 billion tons of rock salt. However, current production levels are relatively low. This presents an opportunity for investment in salt mining, refining, and the establishment of salt-based industries to maximize the potential of this resource.

The government of Pakistan is committed to attracting foreign investment in the mining sector. It aims to create a favorable and business-friendly environment by streamlining regulatory frameworks, improving infrastructure, and ensuring the security of investments. These initiatives, coupled with Pakistan's untapped mineral resources, present attractive opportunities for investors seeking to capitalize on the country's mineral wealth.

In conclusion, Pakistan's mineral resources hold immense untapped potential. The success of copper and gold mining in Saindak and the discovery of massive deposits in Reko Diq showcase the opportunities in the Chaghai Metallogenic Belt. The untapped reserves of copper in North Waziristan, along with significant iron ore deposits in Chiniot-Rajoa, Kalabagh, and Dilband, offer valuable avenues for investment. Balochistan's lead-zinc and chromite deposits, as well as the abundant rock salt resources, further contribute to the investment potential in Pakistan's mining sector. The government's commitment to attracting foreign investment underscores the nation's determination to unlock its mineral wealth and drive economic growth through sustainable mining practices. With an array of untapped resources and favorable investment climate, Pakistan is poised to become a significant player in the global mining industry

 

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