Mines & Minerals

mines1Northern and Southern Punjab has high potential of minerals / rocks like indigenous iron, gold, radioactive minerals, rock phosphates, coal, gypsum, rock salt, laterite and bauxite sandstone, millstone and different type of clays. Coal is found in Punjab in Makarwal and Salt Range.

Minerals of Punjab provide a strong resource base for its Industrial Sector. Around 20 minerals are under excavation by approximately 2,300 enterprises, including 57 Industrial leases being operated by large corporations / multinationals for industrial production of cement, soda ash, caustic soda, fertilizer, glass, ceramics and coal etc.

With 9 million tons average per annum demand, Pakistan majorly depends upon imported iron and steel. The industry’s CGAR is 15% and it is essential to establish local production capacity which invites private sector investment to achieve import substitution and indigenous resource utilization.

Confirmation of Iron Oxide Copper Gold (IOCG) type of deposits at Chiniot, which is the premier project site of Punjab, has increased the probability of occurrence of potential metallic minerals in other areas in the Districts of Chiniot, Faisalabad and Sargodha.

mines2Key Facts

  • Punjab has the world’s largest rock salt deposits in Salt Range
  • Province’s first ever Mineral Policy 2018, providing a comprehensive enabling environment for private sector investors
  • Metallic Mineral Resource estimation of ~250 Mt. Iron
  • Coal Resource estimation of 511 Mt. Coal
  • Delineation of areas for installation of cement plants in Punjab, opening up new investment opportunities in the sector

Chiniot Iron Ore Project

To realize the vision of the Government of Punjab, Punjab Mineral Company is the specialized mineral sector entity, which has undertaken exploration and resource estimation of metallic mineral resources in Punjab. Working to shape up at Chiniot, Pakistan’s first Iron Ore Mining & Processing project is near to completion which would be sufficient to cater needs of a large-scale steel mill complex. PMC is planning to work on 32 new areas for metallic mineral exploration and licenses for 8 areas are at the application process stage.

Phase I

Phase II

Transaction Advisor

  • Drilling Contractor MCC, China
  • Resident Consultant GEO-RC, Germany
  • Qualified Person BAW, Canada
  • Laboratory Work SGS, Switzerland ACME Labs, Canada SGA Labs, Germany
  • Drilling Contractor Ortadogu Drilling, Turkey
  • Resident Consultant Furgo, Germany
  • Qualified Person John Arthur, UK
  • Laboratory Work SGS, Switzerland ACME Labs, Canada
  • Mining DMT, Germany
  • Steel Mining Mines & Metals, Germany
  • Financial Expert Endeavour Financials, UK
  • Environment Expert Nespak, Pakistan

Proven Reserves Assessment by World Renowned Experts

Work at Chiniot is being executed by renowned International Experts in two phases, adhering with the requirements of NI 43-101 Canadian Reporting Standard.

Highlights of Project Potential

Extensive Base Business case covering demand, supply, choice of products, methods of mining, processing and steel mills have already been completed based on Phase I findings by international firms. Highlights of estimated business potential is given as under:

Iron Ore Mining
250 Mt @ Tfe 30%

Copper Resoruces
31 Mt @ TCu 0.3%

Steel Production
1 MnT Per Annum

Economics
IRR > 20%

Mine Production 4.2 MTPA
Magnetite 80%
Hermatite 20%
UG Cut & Fill Method
Chalcopyrite
Malachite
Robust Demand of HRC
Conventional Processing
Pellet 65% 1.25 MTPA
Corex Smelting Unit
Capex US$ 1.3 Billion
Payback 9 Years
Project Life +40 Years
Regulatory Duties
Special Economic Zone

 

With 9 million tons average per annum demand, Pakistan majorly depends upon imported iron and steel. The industry’s CGAR is 15% and it is essential to establish local production capacity which invites private sector investment to achieve import substitution and indigenous resource utilization. Northern and Southern Punjab has high potential of minerals / rocks like indigenous iron, gold, radioactive minerals, rock phosphates, coal, gypsum, rock salt, laterite and bauxite sandstone, millstone and different types of clay.