investment oriented study on minerals and mineral based...
TRANSCRIPT
INVESTMENT ORIENTED STUDY on
MINERALS AND MINERAL BASED INDUSTRIES
Experts Advisory Cell Ministry of Industries & Production Government of Pakistan
April, 2004
“Do ye not see That God has subjected To your (use) all things In the heaven and in earth And has made His bounties Flow to you in exceeding Measures (both) seen and hidden”
Luqman XXXI - 20
PREFACE The Ministry of Industries & Production through Experts Advisory Cell assigned a
study “Investment Oriented Study on Minerals and Mineral Based Industries” to a
Mineral Consultant in June 2003. The objective of the study was to understand
and gauge the geological endowment and mineral potential of the country
alongwith allied matters for the identification and formulation of profiles of high
mineral potential deposits for their utilization in various sectors of economy.
Accordingly, the geological, minerals, policy and institutional situation obtaining in
the country has been reviewed, the scope of mineral potential for their fast track
development has been examined and capacities of their utilization have been
weighed. To this effect, various available sectoral and project specific studies
and reports, and comments/suggestions from pertinent bodies representing
broadly public, semi public and private sector have been scrutinized. As a result
of these toils and deliberations, viable and implementable recommendations
have been made under each heading/chapter of the study. EAC gratefully
acknowledges the valuable comments/suggestions received from the
stakeholders.
As the mineral sector is vast and complex, full of risks and uncertainties and host
of indigenous problems, it has been suggested that a Plan of Action may be
designed for translating these recommendations into action as desired both by
the Minister of Petroleum and N.R and Minister of Industries and Production
during their speeches in the Mineral Sector Development Consultation Workshop
with Stakeholders on 15-16 December, 2003 at Islamabad.
God Almighty has blessed us with abundant mineral resources and we pray to
Him to give us courage, commitment and talent for their scientific development
and productive utilization in the best interest of the country.
Experts Advisory Cell Islamabad
April, 2004
MESSAGE FROM MINISTER FOR
INDUSTRIES AND PRODUCTION The mineral resources of a country are valuable means and measures of its economic and industrial growth. These are still more important for Pakistan because of its favourable geological environment and a large number of mineral resources in the country. Considering that substantial scope exists for the development of mineral sector and their uses in industries, Ministry of Industries & Production through Experts Advisory Cell conducted “Investment Oriented Study on Minerals and Mineral Based Industries”. The objective of the study was to cover geoscientific and mineral development matters for identifying metallogenic regions and developing project portfolios of viable mineral deposits from their development and utilization. As the mineral sector is vast and complex & loaded with risks and
uncertainties, it requires Govt. support at various stages of its development. In this context, Ministry of Industries and Production has been and still is playing its role by declaring mineral rich parts of the country as Export Processing Zone particularly in Balochistan and Sindh. These zones, needless to say, would get the benefits of the package announced by the Prime Minister for encouraging investment in EPZ’s. All along your Government has been attaching high priority to Mineral Sector. This is evident from
the discovery and development of world class copper-gold deposits in Chagai; Balochistan by Australian Firms that would fetch $ 500 million to $ 600 million per year during the lives of these mines. Successful upgradation studies being carried out by German Consultants on Dilband Iron Ores Balochistan would, to large extent, minimize importation of Iron Ores 1.7 million tons iron ores costing about Rs. 3.2 billion per year. Development of Thar coal field, one of the largest good quality lignite deposits in the world, on completion, would provide additional source of energy. Moreover development of abundantly available high quality industrial minerals and natural stones have bright prospects for exports, import substitution and local consumption. The confidence of foreign investors, developers and consultants repose in Pakistan, clearly demonstrate the successful April, 2004
implementation of investment oriented policies initiated by the present regime. In order to consider the recommendations made in the study and to translate them into Action Plan, is necessary that modalities should be worked out for taking full advantage of our mineral potential. In the end, I quote an extract of the speech made by Quaid-e-Azam Mohammad Ali Jinnah on the occasion of laying of foundation – stone of the building of the Valika Textile Mills Ltd: on September 26, 1947, that shows his ability to see far ahead of his times, and whatever he prescribed proved to be correct and true. “Nature has blessed us with a good many raw materials of industry and it is upto us to utilize them to the best of the state and its people”
Liaquat Ali Jatoi Minister for Industries & Production
iv
MESSAGE FROM SECRETARY
INDUSTRIES & PRODUCTION
The mineral potential of Pakistan
is widely recognized to be
excellent but the sector is
inadequately developed. This is
evident from the fact that its
contribution to Gross National
Product (GNP) remained 0.5% to
1.0%, unchanged over the last
many decades despite
substantial growth in the
economy of Pakistan. Taking the
mineral potential into account, it
is clear that a more substantial
mining industry could be
developed to feed other sectors
of economy particularly the
industrial sector.
Minerals are very important for
the growth of mineral based
industries. The minerals described
below are under various phases
of exploration, development and
utilization in Pakistan.
Energy Minerals (coal), Agriculture
Minerals (rock phosphate,
gypsum), Metallic Minerals (iron
ores, copper, gold, zinc-lead,
chromite, antimony), Refractory
Minerals (refractory clays,
magnesite, chromite, silica sand,
dolomite) and Glass & Ceramic
Minerals (kaolin-china clay,
nephyeline syenite, silica sand).
Thus sustainable availability and requisite suitability of minerals is a requirement for rapid industrialization. In order to put the
v
minerals used in various industries
in proper perspective, M/o
Industries and Production
assigned the task to Experts
Advisory Cell to undertake a
study on the subject matter.
Accordingly, the study has been
completed that contains
amongst others geo-scientific,
technological, policy matters,
availability of physical and
human infrastructure and
describes portfolios of 15 top
minerals that have potential of
development for export purposes,
import substitution and local
consumption on immediate and
short term basis.
In the end, I am grateful to the
Mineral Sector stakeholders
representing public and private
sectors, experts and professionals
who have provided valuable
comments/suggestions for the
finalization of viable and
implementable recommendations
for the consideration and approval
of the Government.
Muhammad Javed Ashraf Hussain Secretary
April, 2004
ACKNOWLEDGEMENT
Experts Advisory Cell gratefully acknowledges the concerted efforts made by Engr.
Tajammal Hussain, Consultant on Minerals in the preparation of this document. The
main theme of this effort was to provide dynamic tool for the development of
minerals and mineral based industries in Pakistan through integrated concept
involving multitude of geo-scientific and technological disciplines.
The consultant gathered, compiled, documented and analysed the available
geological and technological data, with a view to identifying the metallogenic regions
and high mineral potential areas. This resulted in preparation of portfolios of top 15
mineral deposits that have good potential to replace imports/ exports & thus attract
investment. Further, to facilitate the potential investors, geological and mineral data,
R&D infrastructure, policy and fiscal matters have been documented.
It is hoped that the recommendations made in the report, as generally agreed by more then 85% of the stakeholders who responded to EAC letter of January 15, 2004, would be realized by the public and private sector.
Experts Advisory Cell
Islamabad April, 2004
Table of Contents
Preface ............................................................................................................................... i
Message from Minister for Industries & Production, Govt. of Pakistan........................ ii Message from Secretary, Ministry of Industries & Production, Govt. of Pakistan ...... iv Contents ............................................................................................................................. vi EXECUTIVE SUMMARY.................................................................................................. 1 CHAPTER – I INTRODUCTION ................................................................................................................ 7 CHAPTER – II GEOLOGICAL AND MINERAL POTENTIAL OF PAKISTAN A. GEOLOGICAL FRAMEWORK ................................................................................. 9 Tectonic and Structural Features ................................................................................. 9 General Geological Division and Mineralization ...................................................... 14 a. The Plain Area .......................................................................................... 16 i) Platform Area ........................................................................................ 16 ii) Fore-deep Area ..................................................................................... 16 iii) Shield Rocks ......................................................................................... 18 b. The Folded Belt......................................................................................... 18 i) Potwar Area .......................................................................................... 18 ii) Suleman Range ................................................................................... 19 iii) Kirthar Range........................................................................................ 19 c. Melange Zone ........................................................................................... 19 d. Himalayan Crystalline Belt ...................................................................... 20 e. Kohistan - Island Arc................................................................................ 21 f. Karakoram Block ...................................................................................... 21 g. Chagai Arc ................................................................................................ 22 h. Makran Trench Zone ................................................................................ 22 PRIORITY REGIONS ...................................................................................... 23 Selection Criteria i) Lasbela Khuzdar Belt ............................................................................ 23 ii) Chagai Volcanic Arc.............................................................................. 24 iii) Kohistan – Island Arc ............................................................................ 24 iv) Indus Basin – (Sedimentary Basin) ...................................................... 25 v) Shield Rocks ......................................................................................... 25 vi) Makran Trench ...................................................................................... 25
B. ECONOMIC GEOLOGY OF PAKISTAN High Mineral Potential Zones As Identified by German Consultants Area 1: Chilas- Chilas Ultramafic–mafic Rock Complex, Northern Areas.................... 28 Area 2: Jijal- Jijal Ultramafic–mafic Rock Complex, Northern Areas........................... 29 Area 3: Sakhakot, Qila Sakhakot, Qila Ultramafic-mafic Rock Complex, N.W.F.P ..... 29 Area 4: Hunza - Suture Associated Gemstone Zone. Hunza, Northern Areas ............... 29 Area 5: Swat - Suture Associated Gemstones Zone, NWFP. ........................................ 30 Area 6: Awerith - Polymetallic Mineralization Chitral, NWFP ..................................... 30
Area 7: Drosh - Polymetallic Mineralization Chitral, NWFP......................................... 30 Area 8: Abbottabad - Precambrain – Paleozoic Tertiary, Abbottabad - Mansehra-
Muzafarabad, NWFP & AJK ............................................................................. 30 Area 9: Chiniot - Igeneous – Contact Metasomatic gold-bearing iron ore, Chiniot Bangla, Punjab ...................................................................................... 31 Area 10: Muslim Bagh - Ultramafic – mafic- basalt, Rock Com, Muslimbagh – Zhob valley, Balochistan. ........................................................................................... 31
Area 11: Khuzdar - Jurassic Mineralized Carbontes, Khuzdar – Balochistan.................. 31 Area 12: Lasbela - Ophiolite Belt, Jurassic Mineralized Carbonates and Tertiary Sediments, Bela- Duddar- Kundi – Balochistan. .............................................. 31
Area 13: Chagai Raskoh - Chagai Magmatic Arc, Chagai – Dalbindin, Khuzdar – Balochistan ....................................................................................... 32 Area 14: Saindak - Saindak Porphyry Copper Area, Saindak –Mashi chah – Nokkundi, Balochistan ....................................................................................... 32 Sequence of Steps for Carrying Out Exploration Projects as Suggested by German Consultants. i) Database ............................................................................................................ 32 ii) Geology .............................................................................................................. 33 iii) Geochemistry ..................................................................................................... 33 iv) Geophysics ......................................................................................................... 33 v) Drilling ............................................................................................................... 33 vi) Technological Testing and Planning .................................................................. 33
CHAPTER – III GEOLOGICAL AND MINERAL DATABASE i) Database on Mineral Occurrence ............................................................................ 34 ii) Status of Geological and Geophysical Mapping ...................................................... 34 iii) Mineral Deposits and Production............................................................................. 36 CHAPTER – IV EXPLORATION AND EVALUATION OF MINERAL DEPOSITS (Guidelines) a) Phase I - Technical Studies and Planning ............................................ 46 b) Phase II - Exploration Phase ................................................................... 47 i) Geological Mapping........................................................................................... 47 ii) Geophysical Studies ........................................................................................... 47 iii) Geochemical Studies .......................................................................................... 47
iv) Mineralogical, Pegtrological, Petrographic, Stratigraphic and Sedimentological Studies ................................................................................... 47
v) Drilling ............................................................................................................... 48 vi) Technological Testing. ....................................................................................... 48
CHAPTER – V GEOSCIENCE ORGANIZATIONS A. Federal a. Geological Survey of Pakistan (GSP) i) GSP HQ, Quetta ................................................................................................ 49 ii) Analytical Chemistry Division, Quetta .............................................................. 49 iii) Sedimentary Geology, Quetta ............................................................................ 50 iv) Geophysical Division, Quetta ............................................................................ 50 v) Services Division, Quetta................................................................................... 50 vi) Petrography Branch, Quetta ............................................................................... 50 vii) Photogeology and photogrammetry Branch, Quetta .......................................... 50 viii) Publication Directorate, Quetta .......................................................................... 51 ix) Geo-Science Research Centre, Islamabad.......................................................... 51
x) Seven Divisions/Directorates/Centre of GSP established in Quetta, Karachi, Lahore, Islamabad, Peshawar and Muzzafarabad. ............................................. 51
b. Pakistan Mineral Development Corporation, Islamabad. ................................. 51 c. Federally Administered Tribal Area Development Corporation ...................... 52 d. Pakistan Council of Scientific &Industrial Research Laboratories (PCSIR) .. 52 i) Mineral and Metallurgy Centre, Lahore............................................................. 52 ii) Glass and Ceramic Research Centre, Lahore ..................................................... 52 iii) Fuel Research Centre, Karachi........................................................................... 52 iv) Mineral Technology Division, Peshwar ................................................. 53
B. PROVINCIAL a. Punjab Mineral Development Corporation. ........................................................ 53 b. Balochistan Development Authority..................................................................... 53 c. Azad Kashmir Mineral and Industrial Development Corporation................... 54
CHAPTER – VI NATIONAL MINERAL POLICY - 1995
a.BRIEF FEATURES OF NATIONAL MINERAL POLICY (1995)- INCENTIVES FOR INVESTORS
i) Objectives........................................................................................................... 55 ii) Constitutional Position – 1973 ........................................................................... 55 iii) Background........................................................................................... 55 iv) Institutional Arrangements .................................................................... 57 v) Regulatory Regime ............................................................................... 57
Reconnaissance License (RL) ..................................................... 57 Exploration License (EL).............................................................. 58 Mineral Deposit Retention License (MDRL)................................ 58 Mining License (ML) .................................................................... 58
vi) Fiscal Regime..................................................................................................... 59 vii) Arbitration.............................................................................................. 61 CHAPTER – VII PROFILE OF THE TOP 15 MINERAL PROJECTS (documenting overview, status and scope, conclusions and recommendations)
1. COAL ........................................................................................................................... 63 2. COPPER AND COPPER BEARING GOLD AND SILVER .................................. 79 3. IRON ORES ................................................................................................................. 89 4. LEAD-ZINC ORES ..................................................................................................... 96 5. GOLD – PLACER AND MINERALIZED ................................................................ 99 6. CHROMITE ............................................................................................................... 101 7. GYPSUM/ ANHYDRITE ......................................................................................... 104 8. PHOSPHATES ........................................................................................................... 113 9. ROCK SALT ............................................................................................................. 118 10. SOLAR SALT............................................................................................................. 125 11. MAGNESITE ............................................................................................................ 127 12. LIMESTONE FOR LIME......................................................................................... 130 13. KAOLIN (CHINA CLAY) ........................................................................................ 133 14. NATURAL STONES ................................................................................................ 137 15. GEMSTONES ............................................................................................................ 144
GEO-TOURISM - THE SALT RANGE, A Treasure of Tourism .............................. 154 CHAPTER – VIII LOOKING AHEAD – Minerals and Mining: Vision and Strategy............................. 159 CHAPTER – IX CONCLUSIONS AND RECOMMENDATIONS ......................................................... 181 CHAPTER – X OBSERVATIONS AND PROPOSALS ON (EXECUTIVE SUMMARY AND CONCLUSIONS AND RECOMMENDATIONS) OF INVESTMENT ORIENTED STUDY ON MINERALS AND MINERAL BASED INDUSTRIES. Summary .......................................................................................................................... 208 Letter addressed to mineral sector Stakeholders group (Specimen) ................................. 209 List of targeted mineral sector Stakeholders group............................................................ 210 Table showing extracts of the observations/recommendation of the Stakeholders and Consultant response............................................................................................................ 219 FEDERAL A. M/o Petroleum and Natural Resources
1. Director General (Mineral Wing) Islamabad. ........................................................ 232 2. Director General, Geological Survey of Pakistan, Quetta ..................................... 234 3. Managing Director, Pakistan Mineral Development Corporation, Islamabad....... 238
B. M/o Science and Technology
4. Pakistan Council of Scientific and Industrial Research, Islamabad....................... 240
5. National Science Foundation, Islamabad ............................................................... 241 C. Planning and Development Division
6. Chief, Industries, Minerals and Commerce Section. ............................................. 242
D. M/o Industries & Production
7. SMEDA, Peshawar................................................................................................. 243
E. Privatization Division
8. Board of Investment ............................................................................................... 247 F. M/o Kashmir Affairs & Northern Areas and States and Frontier Regions Division.
9. Azad Kashmir Minerals and Industrial Development Corporation. ...................... 248
G. Northern Areas Administration Planning and Development Division
10. Secretary, Planning, Northern Areas...................................................................... 251 H. Atomic Energy Minerals Centre, Lahore.
11. Director General – PAEC....................................................................................... 255
I. Pakistan Atomic Energy Commission, Islamabad.
12. Directorate of Nuclear Fuel Cycle ......................................................................... 258 J. PROVINCIAL
13. Director General (Mines and Minerals), Govt. of the Punjab, Lahore................... 260
14. Director General (Mines and Minerals), Govt. of Balochistan, Quetta. ............... 261
15. Director General, Sindh Coal Authority, Karachi. ................................................ 262 16. Director General (Mines & Minerals), Govt. of NWFP, Peshawar. ..................... 263
K. ACADEMIA
17. Director, National Centre of Excellence in Geology- University of the Peshawar. 264 18. Chairman, Mining and Geological Engineering Department, University of
Engineering and Technology, Lahore. .................................................................. 267
L. EXPERTS 19. Dr. Naseeruddin Sheikh (Retd) Member (Tech) PCSIR.................................. 268 20. Ex-Senator, Mr. Saifullah Khan Paracha, Quetta. ........................................... 276
M. INTERNATIONAL ORGANIZATIONS
21. Country Director, Asian Development Bank, Resident Mission, Islamabad. ....... 279 22. Manager, Mining Department WB – Mining Department Washington USA....... 281 23. Dr. Ludwig Hofmann, RE UND, WASSER, GMBH, Germany ................ 288
N. PROFESSIONAL BODIES 24. Pakistan Gelological Society.................................................................................. 289 25. Institute of Mining Engineers, Pakistan ................................................................. 292
O. ENGINEERING DEVELOPMENT BOARD
26. Co-ordinator – Engineering Development Board .................................................. 294
P. FRONTIER MINE OWNERS ASSOCIATION NWFP
27. Chairman, Frontier Mine Owners Association ..................................................... 295
CHAPTER – XI REFERENCES................................................................................................................... 299
TABLES
Table Nos.
Page
1. Status of Geological and Geophysical Mapping…………………….. 34 2. Summary of Mineral Production (Average)…………………………. 36 3. Resource Summary of Copper and Gold-Rekodiq; Balochistan…. 38 4. Reserve Summary of Copper – Gold H4-Rekodiq, Project and
Saindak Project………………………………………………………....
38 5. Imports of Minerals & Metal Scraps (2001-02)……………………... 39 6. Export of Minerals (2001-02)…………………………………………. 42 7. Export Potential of Minerals and Gemstones……………………….. 44 8. Export Potential of Mineral Products………………………………… 45 9. Summary of Fiscal Regime…………………………………………… 62
10. World Wide Share of Coal in Electric Power Generation – Dec, 2002……………………………………………………………….
64
11. Characteristics of Major Coal Fields ………………………………… 74 12. Pakistan Coal Reserves/ Rsources as on June 30, 2002…………. 76 13. Thar Coal Reserves / Resources…………………………………….. 77 14. Thar Coal – field (investigated Blocks)………………………………. 78 15. Table showing Regional Copper+Gold Deposits of the Tethyan
Magmatic Arc……………………………………………………………
82 16. Location, Reserves, Quality and Accessibility of Iron Ore
Deposits…………………………………………………………………
89 17. Type of Phosphate Rocks, Reserves and Grades…………………. 115 18. Locality wise Ore Reserves of Rock Phosphate in Hazara;
NWFP……………………………………………………………………
115 19. Chemical Composition of Raw and Washed Clay of ShahDheri;
NWFP and Nagar Parkar; Sindh……………………………………...
134 20. Chemical Analysis of Islamkot China Clay………………………….. 135 21. Major Color and Shades of Natural Stones…………………………. 139 22. Color and Shades of Marble and Onyx……………………………… 140 23. Gems, Precious and Semi-Precious Stones reported to be
occurring in Pakistan…………………………………………………..
146 24. Mineral Production - Perspective Plan (vision 2010) by GSP
andExpected Growth Pattern of Some Key Indicators of Mineral Sector in Pakistan (from year 2000 to year 2025) by GSP………..
173 25. Proposed Projects with Additional year wise Financial Allocation,
for Reflection over 7 years period (2004-2011) in the perspective Development Plan (2001-2011) by Ministry of Science and Technology……………………………………………………………...
175
ILLUSTRATIONS
Figure Nos.
Page No.
1. Tectonic Plates…………………………………………………………. 11 2. Tectonic Zones of Pakistan…………………………………………… 13 3. Geological Map of Pakistan…………………………………………... 15
4. Geological Sketch Map of Pakistan………………………………….. 17 5. Principal Mineral Zones of Pakistan…………………………………. 27 6. Major Economic Mineral Deposits of Pakistan (2003)……………... 35 7. Status of Geological Mapping by GSP………………………………. 37 8. Map showing Major Coal Fields of Pakistan………………………... 66 9. Investigated Blocks at Thar Coal field……………………………….. 75
10. Location Map of Saindak Copper operations and Reko Diq Copper–Gold Deposits – Regional Infrastructure…………………..
81
11. Map showing Tethyan Porphyry Copper Belt ……………………… 83 12. Location Map of Iron Ore Deposits………………………………….. 91 13. Location Map of Lead-Zinc Deposits; Duddar; Balochistan………. 97
14. Location Map of Northern Pakistan – AIDAB-PAK Gold
Exploration Project……………………………………………………..
100
15. Location Map of Pakistan’s Main Gypsum Deposits………………. 106
16. Location and distribution of Hazara Phosphate deposits, NWFP, Pakistan………………………………………………………………….
114
17. Location map of Rock Salt Mines and Quarries operating under Pakistan Mineral Development Corporation…………………………
119
18. Flow Sheet line-diagram of Rock Salt Crushing and Grinding Iodated Salt Plant; Hattar; NWFP…………………………………….
124
19. Location map of Kumhar Magnesite Deposits Abbottabad; NWFP. 128
20. Map of Pakistan showing location of the Main Granite Areas…….. 138
21. Location Map showing Gilgit’s Main Granite Deposits…………….. 142 22. Major Tectonic Features of Northern Pakistan and Location of
Gemstone Deposits…………………………………………………….
145 23. Location Map of the Salt Range and Kohat Showing Salt
Exposures………………………………………………………………
155
EXECUTIVE SUMMARY
This Executive Summary presents review of mineral industry, geological
aspects, mineral data base, R&D infrastructure in geo-science organizations, policy
matters and fiscal measure, metallogenic regions, high mineral potential areas,
exploration and evaluations frame work, portfolios of TOP 15 mineral deposits,
proposed mineral based projects, mineral sector vision and strategy and suggested
Plan for Action for the fast track development of the sector.
Review Pakistan has a widely varied geological frame work, ranging from pre-Cambrian
to the Present, that includes a number of zones hosting several metallic minerals,
industrial minerals, precious and semi-precious stones. Although many efforts have
been made in developing geological products, institutional, academic and R&D
infrastructure, enough remains to be done to enable this sector to take full
advantage of its endowment. As a result of various toils devoted for the development
of mineral sector, resources of several minerals have been discovered over the last
many decades, including world class resources of lignite coal deposits at Thar,
Sindh, porphyry copper-gold deposits in Chagai, Balochistan, Iron ore deposits at
Dilband, Balochistan, lead-zinc deposits at Duddar, Balochistan, gypsum, rock salt,
limestone, dolomite, china clays etc. in the Indus Basin, ornamental and construction
stones in the various parts of the country; and about 30 different gems and precious
stone deposits in northern Pakistan. These and many other mineral projects are in
various stages of implementation from grass root through exploration, evaluation to
development stages.
However, mineral industry in Pakistan shows that over the last decades the
sector has been allocated very small amount, which has ranged between 0.45% to
2.46% of the total public sector expenditure since first five year plan reflecting its
contribution to Gross National Product (GNP) of just around 0.5%.
Executive Summary
Considering that substantial scope exists for the development of mineral
sector that can drive the economy and enhance industrial growth, Ministry of
Industries & Production through Experts Advisory Cell initiated a study in June, 2003
titled “Investment Oriented Study On Minerals And Mineral Based Industry” covering
geological aspects, policy and fiscal matters, identification of metallogenic zones,
individualizing high mineral potential areas, availability of human and physical
infrastructure with geo-science organizations, preparation of project portfolios of top
mineral deposits that have good chances of being exported, replacing imports and
have potential for local consumption. Further it was also required to collect, compile,
document and analyse mineral related data and to prepare predictable and viable
visionary approach and strategy for the minerals and mining sector.
Pursuant to the task assigned, relevant and latest geo-scientific, technological
and mineral database available with various government and semi-govt.
departments of federal and provincial govts. was collected and analysed. It was
known that some excellent reviews of potential metallogenic zones, sectoral and
project specific studies, feasibility studies, techno-economic reviews and thorough
exploration reports are available. Thar and Lakhra coal studies, techno-economic
reports on phosphates, gypsum, rock salt and magnesite deposits, UNDP/PMDC
feasibility work on Duddar zinc-lead deposits followed by work done on the same
deposit by Australian mining company pasminco, extensive work done by foreign
consultants and copper mining companies in the copper-gold mineralized regions of
Balochistan, Iron ore deposits study in Chagai and Kalat areas of Balochistan, geo-
chemical surveys for gold in northern Pakistan by Australian company and on
several industrial minerals as well as natural stones evaluation work has been done.
Undoubtedly much more work has been carried out in the geological departments of
various universities, geo-sciences labs of GSP and by the geo-scientists Museum of
Natural History, Islamabad. Efforts has been made to hold discussion with the key
persons to obtain their expert views and comments during the scrutiny of various
reports with a view to meeting the requirements of the Term of Reference of the
study.
Executive Summary
Brief description of the conclusions drawn and recommendations framed are
given below. Detailed description is documented in the report.
Geological Aspects Availability of thorough knowledge of geology and mineral potential is a
requirement for mineral investors who are risk takers and determined explorationists.
It is an alarming situation that only 33% of the total area of Pakistan is geologically
mapped to the scale of 1:50,000. For the speedier and accurate geologic mapping it
is recommended that:
i) a Remote Sensing Centre may be set up in GSP as application of this technology would save time and money through better programming of field trips in the promising areas.
ii) The geological maps and products prepared by various public sector mining departments and geological departments of universities may be checked and added in the inventory of GSP wherever considered necessary.
Data Base GSP may ensure access to the following: i) open file data (records of
geological maps, technical reports and borehole logs); ii) mineral locality data base
(synoptic information on all mineral showings; iii) mining database (plans of
abandoned mines) ; iv) national core library (library of drill holes); and v) Import-
export material.
R&D Aspects-Geoscience Organizaitons Availability of highly trained manpower, sophisticated equipment, testing
instruments and pilot plant facilities with various geo-science organizations has been
documented in the report. To facilitate in developing awareness and workable
linkages between the mining industry and geo-science organizations, it is
recommended that R&D infrastructure may continue to be updated and
disseminated.
Executive Summary
Policy Matters and Fiscal Measures National Mineral Policy (1995) being adequate and, as such, should remain
intact though necessary improvement may be made with a view to making it more
investment friendly. Metallogenic Regions Geo-scientific studies and surveys have identified following regions containing
world class mineral deposits.
i) Lasbella Khuzdar Belts, Balochistan: This belt extending hundred of kilometers from north of Karachi (Labela) to south of Quetta containing lead-zinc deposits and ultramafic rocks hosting chromite and platinum group elements (PGE).
ii) Chagai Island Arc, Chagai, Balochistan: This metallogenic province hosts world class porphyry copper+gold and molybdenium deposits. These deposits are being investigated and operated by foreign investors. Iron ore deposits near Dilband are also being evaluated from beneficiation stand point.
iii) Kohistan – Laddakh Island Arc: This region consisting of northern Pakistan hosts, gold, precious stones, platinum group elements and rare earths.
iv) Indus Basin: This basin contains large quantities of industrial minerals while the shield rocks consists of granite and iron ores.
High Mineral Potential Areas German Consultants Grundstofftechnik Gmbh, in association with preussag AG,
Metall, Mine Consultant hired by Asian Development Bank formulated a 10 years
National Mineral Exploration Programe (NMEP), which concentrated on the high
mineral potential Areas (1993). Fourteen Areas were individualized along with
definite action plan. GSP worked with the consultants and designated as the
institution to implement this National Mineral Exploration Program (NMEP). Details
of the same are given in the main report while capsule description is documented in
the chapter on Conclusions and Recommendations. Similarly details of proposed
mineral projects are also given in the same chapter.
Executive Summary
Evaluation and Exploration of Mineral Deposits Mineral exploration and evaluation require high technology, high risk and expensive
exploration programe, This programe should be well focused and well defined and
its feasibility study may cover: i) Technical Studies and Planning (literature studies,
selection of target areas, mode of mineralizaition etc), and ii) Exploration Phase
(geo-scientific mapping, laboratory evaluation, drilling and test mining operations
and technological testing). It is vital that exploration be conducted in stages in order
to encourage regular decision making with respect to abandonment, suspension or
proceeding with exploration of specific areas and mineral deposits.
Project Portfolios of Top 15 Mineral Deposits Description of all mineral occurrences/deposits is an encyclopaedic task – far
beyond the scope of this study. Only Top 15 mineral deposits/areas have been
included that have good chances of being exported, replacing imports, have
potential for local consumption and attract investment. They include coal, copper
and copper bearing gold and silver, iron ores, lead-zinc ores, gold-placer and
mineralized, chromite, gypsum/anhydrite, phosphates, rock salt, solar salt,
magnesite, limestone for lime, kaolin, natural stones and gemstones. Detail of the
same is given in the body of the report while summarized version may be seen
under the chapter of Conclusions & Recommendations.
Looking Ahead Based on the current mining situation, effort has been made to predict and
project a few viable and implementable propositions. This is a difficult task
particularly in the mineral sector as it is vast, complex sector and difficult to see twist
and turns that future may bring.
Executive Summary
Plan for Action Under the headings of various chapters, Conclusions have been drawn and
viable Recommendations made. In view of National urgencies and for obtaining
optimum benefits within the shortest possible time, it is necessary that the suggested
recommendations may be translated into Action Plan, wherever considered
necessary. This may be done by the Ministry of Petroleum & Natural Resources in
consultation with Ministry of Industries & Production, other concerned Federal
Ministries and Provincial Govt. departments, professional bodies and associations
alongwith domestic and foreign mineral experts and consultants.
CHAPTER - I
INTRODUCTION 1. The mineral potential of Pakistan is widely recognized to be excellent but its
development is inadequate and slow because of technical, financial and
organizational problems. This is evident from the fact that the sector has been
allocated very small amount which has ranged between 0.45% to 2.46% of
the total public sector expenditure since FIRST FIVE YEAR PLAN, reflecting
its contribution to Gross National Produce (GNP) of just around 0.5%.
2. However, in spite of all these indigenous and external problems, vigorous
efforts have been and are still being made to built the mineral sector as a
significant factor in the national economy. In this context, announcement of
National Mineral Policy (1995), organizational set up, enhancement of training
facilities, R&D infrastructure, availability of professional and skilled manpower
in geoscientific and technological disciplines, activation of private sector and
availability of some excellent reviews of potential metallogenic zones, sectoral
and project specific studies, techno-economic reviews etc. are a few strides
taken for its systematic enhancement.
3. Realizing the importance and need of gauging the availability and suitability of
indigenous mineral recources to meet the present and ever increasing
demand of various industrial sub-sectors i.e, energy (coal), metallurgical (iron
ores, chromite, lead-zinc, copper and associated minerals etc.) refractory and
ceramics (magnesite, clays, soapstone, feldspar etc.) chemical (rock salt,
barite, sulphur, limestone etc), construction (marble, natural stones, gypsum
etc) and agriculture (phosphates, potash, gypsum etc) and numerous other
industries wherein minerals and rocks are required, Experts Advisory Cell of
Ministry of Industries and Production initiated and awarded the study titled “
INVESTMENT ORIENTED STUDY-MINERALS AND MINERAL BASED
Introduction
INDUSTRIES” to Engr. Tajammal Hussain, consultant on minerals on June
20, 2003 required to be completed on or before Feb 20, 2004.
Terms of Reference of the Study 4. ‘To attract investor’s interest in Minerals and Mineral Based Industries in
various sectors of economy, the selected consultant would undertake interalia
the following assignments:
i) To review the existing available geo-scientific and other related data and include existing policies, regulations and fiscal matters;
ii) To inventorize and tabulate the mandate, manpower, sophisticated equipment etc. of geo-sciences R&D centres and other related institutions.
iii) To contact through e-mail, fax, phone, correspondence and/or through personnel discussion with Government functionaries, experts, associations, professional bodies, UNDP, UNESCAP etc for the recommendations to boost Mineral sector.
iv) Based on above, identifying and to prepare project portfolios on: a) Exploration Target Area (s) b) Economic Mineral Prospect (s)
v) To suggest future course of action’.
5. ‘The above TOR are only notional. They shall be adjusted/modified to prepare an exhaustive, comprehensive, and meaningful and practically implementable report’.
6. Pursuant to the task assigned, the Consultant gathered, compiled, documented and analysed the available geological and technological data, with a view to identifying the metallogenic regions and high mineral potential areas for the preparation of portfolios of top mineral deposits that have good chances of being exported, replace imports and have potential for local consumption and in turn attract investment. Further, to facilities the potential investors, geological and mineral data, R&D infrastructure, policy and fiscal matters have also been documented in the report.
CHAPTER - II
GEOLOGY AND MINERAL POTENTIAL OF PAKISTAN GEOLOGICAL FRAME WORK 7. In as much as Pakistan lies along the contact between the Indo-Pakistan and
the Eurasian Plates, it has had an exceptionally complex geologic history.
Summarized details of geological evolution, tectonic and structural features,
general geological division and mineralization are presented in the following
paragraphs.
Tectonic and Structural Features 8. The crust of the earth has never been static and the region of Karakoram,
Hindukush and the Himalayas is one of the most active geological areas in
the world. Much of the region is the geological filling in a huge sandwich
formed where two great continental crust meet. Pakistan lies on the
northwestern corner of the Indian plate, which represents part of the Tertiary
convergence zone between the Indian and Asian plates. To its south lies the
Indo-Pakistan continental plate and to the north the Asian/Karakoram
continental plate. In between the two continental plates lies an ancient
Kohistan island arc, and on which lies mostly the north and northeastern parts
of the NWFP and the Northern Areas of Pakistan. The deformation style and
structures on the edges of these plates mimic their past and present inter-
relationships.
9. If one looks into the plate tectonic concept, then the Indo-Pak continental
plate, Asian/Karakoram continental plate and the Kohistan island arc
represent three distinct tectonic segments. Research shows that Indo-Pak
continental plate was at the equator or south of the equator about 120 million
years ago. The early rifting of micro-continents away from the northern margin
of the Gondwanaland can be discussed with the development of Paleo-
Neththys with a spreading ridge in between. These microplates gradually
drifted towards north and welded to the Asian plate during Creataceous to
Paleogene times. The Gondwanic continent composed of South Africa,
Pakistan, India, Sri Lanka, Madagascar, Australia, and Antarctica etc. From
80 to 53 million years, Indo-Pak continental plate moved northward rapidly
relative to Antarctica/Australia. With the closure of the back-arc basin, the
Kohistan-Ladakh arc collided with the Eurasian plate between 102-85 million
years. The northward moving India Plate eventually collided with Kohistan –
Ladakh margin about 55 million years ago. The continued underthrusting of
the Indian plate since Cretaceous produced the spectacular mountain ranges
of the Himalaya and a chain of fold-and-thrust belts as thick sheets of
sediments thrusted over the Indian craton (Fig.-1&2). The boundary of the two
continental plates or continents is traceable in the southern Tibet. The
boundary extends to the west and in Pakistan, it bifurcates into two collisional
boundaries, (i) in the north, the boundary between the Asian/Karakoram
continental plate and the Kohistan island arc (Northern suture or Main
Karakoram Thrust; MKT), and (ii) in the south, the southern boundary of the
Kohistan island arc with the Indo-Pak continental plate (Indus suture or Main
Mantle Thrust; MMT). These sutures or the contact boundaries are very
unique where closure of the oceans are reflected by the presence of oceanic
crustal parts similar to the present day oceans.
10. The Indo-Pak continental plate is made up of Pre-Cambrian to Cambrian
basement, and Paleozoic to Mesozoic and Tertiary cover. Several episodes
of plutonic activity ranging from Pre-Cambrian to Permo-Triassic and even
Himalayan age have been recorded in the Indo-Pak continental margin. To
the south lies the Himalayan fold belt, it mostly comprises sedimentary rocks
of fore-deep and pre-cratonic shelf and consists of tightly folded and faulted
sediments of the outer Himalayan belt. Pre-Cambrian Basement rocks are
exposed along the Sargodha High about 80 km south of Salt Range thrust. To
the north the Himalayan crystalline schuppen zone follows the belt: the
precollisional crystalline rocks along the entire Himalayan belt represent this
zone. Further towards north lies the Nanga Parbat Haramosh massif. The rocks
in the massif are mainly remobilized granitic augen gneiss, slate, quartzite,
schist, paragneiss and amphibolite.
11. The Asian/Karakoram continental plate forms a part of the Karakoram-
Himalayan Fold and Thrust Zone. The rocks are predominantly pelitic and
comprise phyllites, schists, gneisses, marbles and amphibolites. These rocks
follow the arcuate trend of the major mega shears in the area and show an
increase in grade of metamorphism from south to north.
12. The collision in the west is oblique along a transgressional fault zone. The
discontinuous belt of ophiolites which runs through the Bela and Zhob valleys
represents the suture. Presently the Chaman / Ornach-Nal Transform Fault
Zone (COTFZ) marks the western plate boundary. The Indian plate is
separated from the Carlsberg Ridge while the Owen Fracture Zone marks the
boundary between the Indian and Arabian plates.
13. The mid Tertiary collision zone east of the COFTEZ can be subdivided into
stratigraphically and tectonically distinct regions viz., Northern Mountain Area,
Axial Belt and Indus Basin. The vast Indus Basin is located west of the Indian
Shield and extends from the Main Boundary Thrust in the north to the
offshore area south of Karachi, east of the Murray Ridge. The Indus Basin is
further subdivided into Upper, Middle and Lower Indus sub-basins. The Indus
Basin covers an area more than 25,000 sq. km in southeastern Pakistan and
includes the Indus Plain Thar-Cholistan Deserts. The Basin contains
sediments ranging from Pre-Cambrian to Tertiary with a well developed
plateform deposits of Jurassic. The area west and northwest of the Axial Belt
represents the Balochistan Basin, which includes the Makran Subduction
Complex and Kakar Jhurasan Flysch Trough. The rocks exposed in the
Balochistan Basin are mainly Cenozoic with a few isolated outcrops of
Cretaceous age. The evolution of the Balochistan and Makran areas persued
a different fashion from that of the Indus Basin. The northwest drift of the
Central Iran, Lut and Afghan microcontinents from the Gondawanaland, most
probably started as early as Permian. The presence of arc associated
volcanics in the Chagai and Raskoh Magmatic Belts of the Campanian age
suggests that a subduction complex had developed along the southern margin
of these microplates, probably during the Cenomanian. The accreted
Paleogene Flysch gradually gets younger from north to south.
General Geological Division and Mineralization 14. Pakistan is country where its geologically evolutionary history can be traced
back up to 1.8 billion years. During this long period one can imagine how
many times the area remained under sea for the formation of sedimentary
rocks and how many times igneous lavas have invaded this territory along
with creating metamorphic rocks and a host of complex geometry of the lofty
ranges which look so majestic now. Creation of mineral deposits is a side-by-
side mechanism that is only understandable with a broad geological
framework in mind.
15. Broadly hilly and mountain areas constitute about 60% of the country leaving
40% area as plain that merges into Arabian sea towards south. Plain areas in
fact belong to ‘concealed’ geology as hard rocks are lying beneath the entire
very thick cover of soil whereas mountains and hills are ‘exposed’ part of the
geology. Mineral resources, including oil and gas, are scattered both in
concealed as well as exposed part of the geology. Regional configuration of
the important ranges like Karakoram, Himalaya, Salt Range, Koh-i-Suleiman,
Kirthar, Chagai hills and Makran coastal area are result of an evolutionary
process where advance and retreat of sea, settling of sedimentation, eruption
of lavas and movements of earth crust in different directions due to regional
tectonic forces has played their respective vital roles in making the present
shape of our mighty ranges and plain areas (Fig-3).
16. For understanding general geological features the country can be
conveniently divided into eight parts as marked on Fig-4, which are:
1. The Plain Area
2. The Folded Belt
3. The Melange Zone
4. The Himalayan Crystalline Belt
5. The Kohistan Island Arc
6. The Karakoram Block
7. The Chagai Arc
8. The Makran Trench Zone
Brief description of each part is given here:
The Plain Area
17. The plain area comprises those parts where the Indus river along with its
tributaries settle their sediments and cover major part of the Punjab and the
Sindh provinces. This vast territory is geologically divided into:
Platform Area 18. Platform Area occupying all along the Indian borders. Thickness of soil
increases from east to west. This part is well known for its oil and gas
resources in Sindh. Quite recently huge coal resources have been discovered
in the Thar area. The same types of resources are expected to be discovered
in the Fort Abbas area of the Punjab as well.
Fore-deep Area 19. It is a stretch of land where rocks are deeply buried under the soil. It spreads
from Kashmore, Sibi, to D.G. Khan.
Shield Rocks 20. The above two areas have been pierced at Chiniot and Sangla hills in the
upper Punjab by one of the oldest rocks of Pre Cambrian age known as
Shield rocks. In Sindh such rocks are exposed in the Tharparker area. Chiniot
iron ores are being evaluated while pink granite and china clays are being
mined at Tharparker. The shield rocks, world over host precious and semi-
precious metallic mineral deposits.
The Folded Belt 21. These northern and western peripheral parts of the plain areas are occupied
by a sequence of sedimentary rocks which distinctly form three units as:
Potwar Area 22. It is bounded by Margalla and Kala Chitta hills towards north and Salt Range
in the south. These ranges are roughly east west in their direction. Both these
ranges seem abruptly emerging out at the surface by virtue of deep rooted
thrust faults traced all along their feet. Thrust line along which Margalla and
Kala Chitta Hills slipped upward is known as Main Boundary Thrust whereas
such a thrust at the base line of Salt Range has been named as Main Frontal
Thrust. Movements along these thrusts cause earthquake. Sedimentary rocks
comprising Salt Range are as old as Pre-Cambrian, just more than 500 million
year ago. Whereas Jurassic rocks (about 150 million years) are quite known
in the Margalla rocks. Highest age across the Indus river of such rocks is
Ordovician (about 350 million years) where Nowshera reef is a typical
example. Both these ranges were formed under shallow to deep-sea
environment in their early times succeeded by river conditions. World-Class
rock salt resources are confined in the Salt Range. Other important well
established mineral resources include limestone, dolomite, coal; iron ore,
bauxite, gypsum, and silica sand. Black limestone around Taxila is historically
used as a decorative building stone and kitchen wares while phyllitic rocks (a
mild metamorphosed shale rock) have been used in statue making. Other
minerals include fire clay, bentonite and ochre which are used in sanitary
wares, drilling mud and paint industry respectively. Buried sequence of rocks
in the Potwar plateau is a rich potential for oil and gas.
Suleiman Range 23. Area falling in between Quetta, Sibi, D.G. Khan and D.I. Khan, up to the
confluence point of Kurram river with the Indus form a separate garland-like
structure of rocks known as Koh-I-Suleiman ranges. These rocks have been
originated in a shallow to deep sea environments with younger rocks
comprising river deposits. Here too, Jurassic rocks are the oldest one. There
is a variety of industrial minerals identified in these rocks besides oil and gas
being extracted in this zone. limestone, dolomite, gypsum, fullers’ earth, silica
sand and iron ore near Sakhi Sarwar are quite well known. Uranium ore of
commercial quantity was first established as a river-type deposit at Baghal
Chur, west of D.G. Khan. Small quantity of coal has also been reported west
of Kot Addu.
Kirthar Range 24. It occupies much part of the District Dadu and Larkana of the Sindh province
where rocks are extremely low lying. There are some exposures of Jurassic
rocks as the oldest rocks in the area. Primarily rocks are of younger age
comprising river type deposits. The area is well known for its coal resources.
Besides oil and gas, silica sand, limestone, dolomite fuller’s earth and gypsum
are mined at different localities. The area is also known for its variety of clay
minerals. Celestite is also reported from this area.
Melange Zone 25. The plain area and the rocks of folded belt are generally put together under a
big single unit named as the Indus Basin. Further peripheral extension
towards west of the Indus Basin comprises a highly specific zone geologically
known as Melange Zone. It is a zone created by the collision of Indus Basin
rocks with the Balochistan Basin rocks in the west and with the Afghanistan
Basin rocks in the north-west. These three independent basins are largely
referred as Indo-Pak plate (Indus Basin); Afghan micro plate and Lut mirco
plate. It is due to the collision and interaction of these three plates which has
generated this special zone known as Melange Zone. On the basis of its
lithological varieties this zone is also known as Ophiolitic Zone. This block of
rocks starts emerging at Las Bela, continues towards Khuzdar, Zhob and
Waziristan. This collision occurred about 30 km down beneath the surface of
earth generating igneous activity during the Cretaceous time. Technically the
Indo-Pak plate simply brushed with the Balochistan plate creating one of the
largest fault in the sub-continent. There was great uplift and intrusion of
magma into the sedimentary sequence of rocks resulting a mix of crumbling
rocks. The sub-surface magma brought upward minerals like Muslim Bagh
and Waziristan chromite and lead and zinc at Duddar near Bela and Gunga
valley near Khuzdar. Malakand chromite is a part of mélange zone. Lead zinc
occurrences are reported at more than a dozen place. Dilband iron ore and
fluorite deposit, barite at Khuzdar, copper and manganese at Waziristan,
asbestos and titanium at Zhob are quite known mineral occurrences of this
belt. Some gemstones have also been discovered in the Mohmand Agency of
FATA. Swat emerald is yet another example of mineralization along the
mélange zone. There are very large deposits of marble besides quartzite and
soapstone.
Himalayan Crystalline Belt 26. The fourth zone has been identified as the Himalayan Crystalline Belt. It is a
very complex zone lying in between the Margalla – Cherat Hills towards south
to Pir Punjal and Basham area towards north. It covers areas such as Azad
Kashmir, Hazara, lower part of Kohistan, Abbotabad, Mardan and Charsada
etc. The oldest sedimentary rocks (Pre-Cambrian age of about 600 million
years) of the country are exposed in the Hazara area. It is here that age of a
granite rock located south of Basham has been calculated as 1.8 billion years.
The sedimentary sequence has been intruded several times with different
magmas at different places thus generating pure igneous to pure
metamorphic rocks. The belt is limited in the north by a yet another deep
rooted thrust fault which is geologically known as Main Mantle Thrust (MMT).
The Himalayan Crystalline belt is part of the Indo-Pak plate.
27. There is a variety of minerals in these rocks due to their complex nature of
evolution. There are large deposits of granites and marble and other building
stones. Soapstone at Sherawan, Langrial iron ores, Mohriwali graphite, Kakul
phosphate and quartzite, Oghi feldspar, nephline syenite, phyllite and slate
are common. Workers have also reported manganese, ochre and serpentine
rocks.
Kohistan – Island Arc 28. Further to the north of the Himalayan Crystalline Belt there is an area
developed in between the Indo-Pak plate and the Eurasian plate in the
extreme north. This area is geologically labeled as Kohistan Island Arc. This
covers upper parts of the Hazara, Swat and upper part of the Nilum valley.
Chilas, Gilgit, Astor, Skardu, lower parts of Hunza and Yasin valleys, Shindor
Pass and Dir etc. are part of this Arc zone. The Arc has been developed as a
result of the collision between the Indo-Pak plate in the south and Eurasian
plate (Karakoram Block in Pakistan) in the north.
The thrust zone developed towards north is known as the Main Karakoram
Thrust (MKT). The island started building chromite, granites, serpentinites,
feldspar, marble during Cretaceous, some 150 million years ago. Mostly rocks
are huge sheet-like structures. There are high temperature igneous and
metamorphic rocks. Important minerals include placer and host rock gold,
nickel, platinum and garnet. Marble and granite are available as building
stones. Suture zone between Kohistan Island Arc & Indian plate contains
chromite, soapstone/talc, emerald, manganese, quartz, peridote etc.
Karakoram Block 29. Rocks occurring beyond Main Karakoram Thrust (MKT) of the Island Arc up to
the northern borders, Wakhan area of Afghanistan and the China border of Pakistan are part of the Karakoram Block which in fact is the sourthern
continuity of the Eurasian plate. Sheet like east – west trend of the rocks is quite profound. The entire Block is extremely rugged and with very high altitude. About 30% of the area is covered by ice sheets and glaciers. Right from K2 peak, Hushe, Baltistan, Hunza, Ishkoman, upper part of Yasin valley, Tirich Mir and Chitral district is mainly covered by this Block. The oldest rocks are of Ordovician age, some 400 million years ago. Karakoram batholith (mostly granite) is centrally placed creating metamorphic rocks on both of its side. Regionally metamorphosed rocks show huge marble deposits. Dolomitic limestone is quite common. There are well developed slates and schists. Although no significant mining is going on but still the local population is busy in collecting nugget gold, precious stones like ruby, aquamarine, topaz, tourmaline and quartz crystals. Serpentine rock is used both as a building stone as well as decorative kitchen wares. Some arsenic from Chupurson valley and antimony from Awerith near Chitral has been mined in the past. Regional exploratory work has indicated presence of gold, copper, lead, zinc, antimony, cobalt and nickel. Geologists have equally reported pegmatites containing rare earths, barite, mica, garnet and mica flakes. Further precious minerals include Hunza ruby, tourmaline and emerald. Quartz crystals and feldspars are also common.
Chagai Arc 30. Chagai Arc is a body of volcanic rocks mainly developed during Cretaceous
time with some sedimentary sequence of younger age around Saindak copper deposit. It is one of the richest mineral-bearing areas of Pakistan. There are large iron ores deposits located at Pachin Koh, onyx marble north of Dalbandin, Koh-i-Sultan sulphur, pumice stone and one of the largest World Class copper + gold and silver deposits discovered at Reko Diq and are being evaluated.
Makran Trench Zone 31. Area falling all along Makran and Turbat has been termed as Makran Trench
Zone. It is an active zone where the entire area is rising upward due to the
Arabian Plate moving towards north beneath this zone. Very little exposure of
rocks are seen which include mudstone, sandstone and siltstone. Rather it is
a desert where younger rocks are covered by sandy material known as
accretionary deposit. Zircon and titanium have been reported from a few
places along the coastal areas.
PRIORITY REGIONS 32. The Priority Areas have been identified on the basis of known Metallic and
Non-metallic minerals resources. The criteria for their selection includes but
not limited to the following:
i. Easy and Safe Accessibility.
ii. Availability of geological infrastructure comprising topo graphic maps,
aerial photographs and satellite images along with basic geodata, geo-
chemical, geo-physical surveys and preliminary technological and
economic information.
iii. Areas of increased potential that warrant detailed investigations.
iv. Bearing minerals having bright future for their exploration and setting up
Mineral based industries both for local consumption and export.
v. Attractive for prospective investors.
Lasbela Khuzdar Belt 33. In Khuzdar District, several Lead-zinc prospects were reported. They appear
within a zone of mineralized Jurassic sequences in the generally south-north
striking Kirthar-Sulaiman ranges, from Las Bela area in the south to the Kalat
area in the north. They are of the Mississipi valley or Sedimentary – exhalative
(SEDEX) type origin, and are always associated with barite and often with
fluorite. This Belt extends for hundreds of kilometer north of Karachi (Lasbela)
and upto the south of Quetta (Kalat). According to the reports of Baluchistan
Development Authority (1990), the content of combined lead-zinc vary from
5% to 8% and estimated reserves are 10 million tons in Gunga area.
34. This Belt, therefore, deserves a major geo-chemical survey to compare with
the results of the air-borne electro-magnetic survey done by GSP in late
1980’s. Duddar (200 kms NNW from Karachi) has been thoroughly
investigated by PMDC –UNDP and PASMINCO of Australia establishing 14
million tons of 11% to 12% Pb+Zn deposits at 7% cut off grade. The other
prospects as Gunga and Surmai warrant further evaluation. In addition to
sulphur occurrences of which economic value seems marginal, the belt hosts
ultra-mafic rocks with chromite and platinum group element, manganese,
magnesite, iron ores, vermiculite and barite.
Chagai Volcanic Belt 35. This Belt is principally known for the Saindak porphyry Copper deposits, the
only World Class mining project developed and being operated by Chinese
Company. However, occurrences of gold, iron, silver, copper and
molybdenum have been reported that are being investigated by local public
sector agencies and International Mining Concerns. This metallogenic zone
that extends over an area of about 30,000 sq. km from West (Saindak) to East
(Raskoh) has the potential for other and possibly richer prorphyry copper
deposits than Saindak. Further more, there are several showings of gold and
base metal sulphur mineralization in out cropping volcanic rocks. The
magnetite rich skarn formation which are well developed in the region have a
known potential for base metals and skarn specific silicate minerals. Needless
to say, the infrastructure established for the Saindak Mine is a bonus feature.
Kohistan – Island Arc 36. This area is developed in between the Indo-Pak Plate and the Eurasian Plate
in the extreme north. This area lays in between the Main Mantle Thrust
towards south and the Main Karakoram Thrust towards north. The area
covers upper parts of the Hazara and Swat areas and upper part of the Nelum
Valley, Chilas, Gilgit, Skurdu, Hunza, etc. It contains high temperature
igneous and metamorphic rocks. Important minerals include placer and host
rock gold, nickle, platinum, lead, zinc and garnet. Precious minerals include
ruby, tourmaline and emerald.
Indus Basin (Sedimentary Basin) 37. The Indus basin is the largest and more thoroughly studied basin of Pakistan.
It trends NE-SW for over 1600 Kms along its Axis while its width varies with
an average of 300 Kms. The basin contains sediments ranging from Pre-
Cambrian to Tertiary with a well developed platform deposits of Jurassic
throughout. Low lying sedimentary folded bed of rocks have been geologically
subdivided into three recognizable strategraphic province; (i) The Kohat –
Potwar Area; (ii) Koh-i-Suleman Range; (iii) Kirthar Range.
38. The important minerals available in Potwar area include rock salt, limestone, dolomite, coal, bauxite, iron ores, gypsum, clay, silica sand, radio-active minerals and sandstones.
39. The Suleman Range covers most of D.G. Khan. The important minerals occur
are limestone, fuller’s earth, gypsum, iron ore, dolomite, radio-active minerals. 40. Kirthar Range is the most southern extension of this whole unit of folded rocks
that is mostly exposed in Sindh. Important minerals are coal, limestone, silica sand, dolomite and different clays.
Shield Rocks
41. The oldest assemblage in the Indus basin constitute a part of Indian shield
exposed near Nagar Parkar and Sargodha in the Lower Indus Basin and
Upper Indus Basin respectively. Pink granite and china clay are being mined
in Nagar Parkar while Iron ores are being explored in Chiniot near Sargodha.
Makran Trench 42. Area falling all along Makran and Turbat has been termed as Makran Trench.
It is a desert area where younger rocks are covered by sandy material. Zircon and titanium has been reported along the coastal areas.
ECONOMIC GEOLOGY OF PAKISTAN 43. As substantiated by research and exploration work carried out by various
government agencies and geology departments of universities, Pakistan is blessed with rich and diversified mineral potential. In 1979, (Khan, S.N; Tahirkheli, R.A.K.) tentatively identified mineral zones, which envelop most important mineral occurrences and potential of the country (Fig-5). The folded belts of Permian to mid-Miocene age occupy the western and northern margins of the country. They are generally referred to as Mountainous Areas, and are resulting from the dynamic process associated with Hamalyan Orogeny. Their formation is very complex and the rocks exposed in these areas relate to Island arc sequences, thrusted oceanic crust segments, deep seated metamorphic, mafic and felsic intrusions. These environments are very attractive for metallic mineral exploration. They host majority of the 14 IDNETIFIED METALLOGENIC provinces of Pakistan, which warrant increased exploration efforts.
44. Regarding INDUSTRIAL MINERALS, sedimentary formation of the Indus
Plain covers almost half of the Pakistani territory. Further unfolded or gently folded, their age ranges from Pre-Cambrian to Recent in the north, and from Eocene to Recent in the southern part, also referred to as the Lower Indus Basin. The Lower Indus Basin host large Tertiary coal field of Thar. The showings of the older formations are limited in surface extension. They are mostly buried under the recent alluvial sediments. The oldest assemblage in the Indus Basin constitute a part of Indian shield exposed in lower Indus Basin as “Nagar Parkar Granite” while the exposure of Upper Indus Basin as “Kirana Group”. Overlying the Pre-Cambrian rocks in the Indus Basin is the “Salt Range”. The youngest rocks, “Siwalik Group” contains the best vertebrate faunal succession in the world and have yielded fauna consisting of nearly all types of mamals together with varieties of reptiles, fishes and birds.
HIGH MINERAL POTENTIAL ZONES AS IDENTIFIED BY GERMAN CONSULTANTS.
45. In order to identify and demarcate the high mineral potential areas, Asian Development Bank through its Technical Assistance Programme hired M/S. GRUNDSTOFFTECHNIK GMBH and PREUSSAGAGMETALL – MINE CONSULTANTS of Germany for the execution of task assigned. In this context, the consultants were required to assist Geological Survey of Pakistan (GSP) in formulating a 10 years National Mineral Exploration Programme (NMEP) which concentrate on high mineral potential areas, and advising on required expertise, combination of exploration and mineral evaluation methods to be used and type of equipment required for carrying out mineral exploration related activities. The contract was made in October, 1991 between the Bank and the consultant. The NMEP remained a basic investigation programme – the first step for mineral development. Accordingly, the consultant hired eight qualified professionals, experienced in economic geology, geological mapping, chemistry / geochemistry, geophysics, engineering geology, mineralogy / petrography, cartography and mineral data management. The duration of the study was 18 man-months, including 13 field months and 5 office months. Based on reviewing of available field data and application of modern geological concepts and models, the consultants selected 14 Areas of known metallic and non-metallic mineral resources of high mineral potential. Description of these 14 Areas covering their geological, development potential, accessibility and size of the area to be geologically mapped is given below. According to the consultant the areas are worth to be mapped, prospected and explored in detail.
Area 1: Chilas- Chilas Ultramafic-mafic Rock Complex, Northern Areas 45. The Chilas rock body with indications of Pt, Pt-group elements and chromite
occurrences belongs to the largest basic intrusions in the world, which are continuously exposed. It is approximately 300 km long between Nanga Parbat in the east and Dir district in the west. It is considered as the root zone of the Kohistan Island Arc with its deepest part in the Chilas area.
47. The selected area (100 sq. Km) is accessible by the Karakoram Highway.
Away from the Chilas area, accessibility is difficult.
Area 2: Jijal- Jijal Ultramafic-mafic Rock Complex, Northern Areas 48. The Jijal rock complex with also indications of Pt, Pt-group elements and
chromite occurrences is well exposed between Jijal, Patan and Allai Kohistan.
It covers about 200 sq. km. It represents an upthrusted rock complex against
rocks of the Indo-Pakistan plate to the south.
49. The selected area is about 150 sq. km. Accessibility is difficult.
Area 3: Sakhakot-Qila- Sakhakot-Qila Ultramafic-mafic Rock Complex, NWFP 50. This rock complex is situated in Malakand Agency, west of Dargai. It is about
26 km long and 3 km to 6 km wide. It bears chromite, Pt and Pt-group
elements.
51. The area for detailed investigations covers approximately 200 sq. km.
Accessibility is moderate to difficult.
Area 4: Hunza - Suture Associated Gemstone Zone, Hunza, Northern Areas 52. The zone is marked by the Main Karakoram Thrust and extends for more than
100 km from the Hunza valley to Ish-ko-man. About 350 sq. km are selected
for detailed investigations along the ruby-bearing marble zone.
53. Except for the Hunza valley area, the accessibility is very difficult.
Area 5: Swat - Suture Associated Gemstone Zone, Swat, NWFP 54. The area is associated with the Indus suture zone, marked by the Main Mantle
Thrust (MMT) in Swat district. The area covers 250 sq. km for detailed
investigation along the emerald-bearing belt of talc-chlorite schists.
55. Accessibility is good in the Mingora area, and moderate to difficult in other
parts of the belt.
Area 6: Awerith - Polymetallic Mineralization Chitral, Awerith, NWFP 56. The center of this area is located about 25 km north of Chitral, within a cluster
of Au, Ag, Cu, Pb, Sb, Sn and W occurrences or deposits. Approximately 160
sq. km are selected for detailed investigation.
57. Accessibility is moderate where antimony mining was or is carried out, and
difficult otherwise.
Area 7: Drosh - Polymetallic Mineralization Chitral, Drosh, NWFP 58. The center of the Drosh area lies ca. 25 km SSW of Chitral, within a cluster of
Cu, Pb, and Sb mineral occurrences. The area for detailed investigations
covers approximately 160 sq. km and is difficult to access.
Area 8: Abbottabad - Precambrian-Paleozoic Tertiary, Abbottabad- Mansehra-Mazafarabad, NWFP and AJK
59. Within this Area, occurrences of Au, Ag, Cu, Pb, Mn and Fe mineralizations
and deposits of phosphate, magnesite, talc, glass sand and bauxite are
known. The area, for detailed investigation, covers about 400 sq. km.
60. Accessibility is moderate, in parts difficult.
Area 9: Chiniot - Igneous-Contact Metasomatic Gold- bearing Iron Ore, Chiniot-Bangla, Punjab
61. The Area comprises about 300 sq. km. covering parts of Sargodha Ridge
where Precambrian rocks of the Indian Shield are exposed. Accessibility is
good to moderate,
Area 10: Muslimbagh - Ultramafic-mafic-basalt Rock Complex Muslimbagh- Zhob Valley, Balochistan
This rock complex covers nearly 3,200 sq. km between Khanozai in the south
and Fort Sandeman in the north, centered near Muslimbagh. The area for
detailed investigations (platinum, chromite, magnesite, talc, vermiculite)
covers about 1,600 sq. km.
63. Accessibility is moderate, in parts difficult.
Area 11: Khuzdar - Jurassic Mineralized Carbonates, Khuzdar, Balochistan 64. Out of the area of more than 16,000 sq. km with Pb-Ag, Zn, Ba and F
mineralizatin, about 2,000 sq. km. are selected for detailed investigations.
65. Accessibility is moderate.
Area 12: Lasbela - Ophiolite Belt, Jurassic Mineralized Carbonates and Tertiary Sediments, Bela-Duddar-Kundi, Balochistan
66. The Area with Cu, Pb-Ag, Zn, Ba, magnesite, talc, bauxite and low-grade
phosphates occurrences or deposits covers more than 12,000 sq. km. Out of
these, about 4,000 sq. km are selected for detailed investigations.
67. Accessibility is moderate to difficult.
Area 13: Chagai Ras Koh - Chagai Magmatic Arc, Chagai-Dalbandin-Ras Koh, Balochistan
68. Out of the Area of about 10,500 sq. km with Cu, Fe + Au, vermiculite and
onyx marble deposits or occurrences, approximately 5,000 sq. km are
selected for detailed investigations.
69. Accessibility is moderate to difficult.
Area 14: Saindak - Saindak Porphyry Copper Area Saindak-Mashi Chan- Nok Kundi, Balochistan
70. This Area comprises about 15,000 sq. km, with deposits or occurrences of
Fe-Au, Ag, Cu, Mo, and onyx marble. About 6,000 sq. km are chosen for
detailed investigations.
71. Accessibility is moderate to difficult.
72. It has been recommended that geological mapping of 153 survey of Pakistan
sheets covering an area of 25,700 sq. km should be undertaken by GSP.
Further geo-chemical, geo-physical, drilling, test mining supported with good
laboratory facilities are required for the demarcation of ore bodies for
subsequent activities. It has been elaborated that the following steps are
necessary for the exploration projects.
Sequence of Steps for Carrying Out Exploration Projects as Suggested
by German Consultants
73 After the identification of 14 Metallogenic Zones Area, the consultants have
suggested the following sequence of work to be performed during the various
exploration steps.
Database 74. Arrangement of available data in databank and its evaluation is the first step
of any exploration program.
Geology 75. The geological mapping constitute the basic field work required for geo-
chemistry, geo-physics, mineralogical investigations, planning of sampling and
drilling, sampling and sample’s treatment, indication of applicable mining and
processing data.
Geo-chemistry 76. After first geological indications, geo-chemistry might be used to find the most
interesting areas for further detailed exploration work.
Geo-physics 77. Underground indications may be found by geo-physics. The interpretation of
the results, however, needs solid geological knowledge. Geo-physics is
planned to apply magnetic, with air-born or portable instruments. Resistivity
measurements and induced polarization methods are recommended for the
various deposits to be explored.
Drilling 78. Detailed drilling is necessary to plan technological processes of mining and
mineral treatment.
Technological Testing and Planning 79. Next step is to undertake detailed and extensive mineral testing, basic
engineering, detailed engineering, etc.
CHAPTER - III
GEOLOGICAL AND MINERAL DATA BASE
Data base on Mineral Occurrences 80. Access to modern and detailed geological maps as well as to database on
mineral occurrences is an early requirement for the explorationists. To this
end GSP has provided Mineral Map of Pakistan showing the major economic
mineral deposits of Pakistan (2003) and their localities. (Fig-6). Further detail
has been given in the Annexure-2 indicating their locations, geological setting,
quality, size, current exploration/mining status and reference of reports from
where the data has been fully or partially taken.
Status of Geological and Geophysical Mapping The status of geological and geophysical mapping as provided by GSP is
tabulated below:
Table 1: Status of geological and geophysical mapping
TOTAL AREA OF PAKISTAN
881,889 sq. km.
%age covered
GEOLOGICAL MAPPING 1:50,000 Scale 288,000 sq. km 32.7% 1:250,000 Scale 880,000 sq. km 99.8% GEOPHYSICAL SURVEYS Gravity and Magnetic 188,000 sq. km 21.3% EXPLORATORY DRILLING 2,750 bore holes Test Holes 525,000 metres - PUBLICATIONS Maps 378 - Reports 974 -
The above table shows that geological coverage on 1:50,000 Scale is hardly 33% which is an alarming situation (Fig-7).
81. Thorough knowledge of geology and mineral potential of Pakistan is an early
requirement before the technical files or brochures can be prepared for
attracting national or foreign investors. Importance of geological knowledge
need to be as detailed as possible in the promising areas of the country. In
order to speed up the production of geological maps allowing integration of
the existing data and extrapolation on the unexplored areas, it is essential that
remote sensing techniques be applied. The use of such a tool will guarantee
more efficiency for the map production, more accuracy for the data presented
and will save time and money by a better schedulling of the field trips.
Mineral Deposits and Production 82. There is a large inventory of minerals and rocks identified in the country. At
present about 58 minerals and rocks are being mined. Inventory of 23
important minerals are tabulated in Table 2 showing names of minerals,
resource size and average yearly production. Details regarding year wise
Mineral Production in Pakistan as well as province wise production of
Balochistan, NWFP, Punjab and Sindh is given in the Mineral Statistics of
Pakistan, GSP – 2003.
Table 2: Summary of Mineral Production (Average) (In Metric Tonnes)
Mineral Resource size Annual Production (Average)
1. Antimony Small 35 2. Chromite Small to medium 27,458 3. Aragonite / marble Large 497,317 4. Granite Large 5,676 5. Onyx marble Large 28,780 6. China Clay Small to medium 61,403 7. Fire clay Medium 124,003 8, Fuller’s earth Medium 18,446 9. Barite Large 26,002
10. Dolomite Large 276,668 11. Flourite Small 579 12. Gypsum Large 384,513 13. Limestone Large 8,697,573 14. Magnesite Large 4,535
15. Phosphate Small 1,074 16. Pumice Small 1,577 17. Quartzite Small to medium 46,486 18. Rock salt Large 157,300 19. Silica Sand Large 157,300 20. Soapstone Medium to large 46,486 21. Sulphur Small 527 22. Talc Small 260 23. Coal Large 3,105,715
Source: Mineral statistics of Pakistan, Geological survey of Pakistan-2003.
Copper and Copper Bearing Gold and Silver 83. Tethyan Copper Company Ltd. (TCC), an Australian Mining Concern
Exploration License Holder of a giant porphyry copper gold deposit at Reko
Diq in Balochistan have established the following resources and reserves of
copper and gold. Saindak copper gold project is in production stage.
Table 3: Resource Summary of Copper and Gold – Reko Diq, Balochistan Location Tonnes
MMT Total
Copper %
Gold gm/T
Contained Copper lbs (million)
Contained Gold Ounces (million)
H4 Project 108.3 0.66 (Avg)
- 1700 -
Western Porphyry
729 0.64 0.39 10,287 9.1
Total 837.3 - - 10,987 9.1
Table 4: Reserve Summary of Copper and Gold – H4 Project and Saindak
Project
H4 Project 78.0 0.7 - 1,203 *Saindak (40 Km west of Reko Dip
412 0.45 0.5 silver
105 g/t
Annual production 16,000 Copper Concentrate
45,000 oz gold 90,000 oz silver
Sources: i) TCC Ltd. – Prospects CAN 09351962 – Australia. * In production
Precious and Semi Precious Stones 84. As no reliable data of precious and semi precious stones is available,
therefore no mention has been made. However it has been reported that
Pakistan is producing about 30 gems and precious stones beside emerald
and rubies and earning through export of raw/cut and polished gemstones is
around US$ 200 million per annum.
Table 5: Imports of Minerals and Metal Scraps of Pakistan (2001-2002)
(Rupees in thousands) 2001-2002
Cumulative from July Code Commodity Unit Quantity Value
2731301 Granite MT 115 729 2731309 Monumental & Building Stone, MT 62 1,709 2732202 Calcareous Stone MT 21 305 2732301 Gypsum MT 315 11,088 2732400 Plasters (Incl use in Dentistry) MT 156 3,798 2733100 Silica Sands and Quartz Sands MT 38 818 2733900 Other Sands MT 74 2,010 2734002 Marble Chips MT 87 33 272200 Sodium Nitrate Crude MT 952 12,066 2723100 Natural Calc Phos Chalk
Unground MT 175,979 557,860
2723200 Natural Calc Phos Chalk ground
MT 155,316 459,999
2724002 Other Crude Natural Potassium Salt
MT 5,250 39,050
2731201 Marble, Arogonite MT 3 7 2731202 Marble, Ordinary White MT 342 2,420 2731204 Marble, Onyx Block
uncut/unpolish MT 4,081 3,116
2731205 Marble, Onyx Slab not Table Top
MT 18,202 3,378
2731209 Calcareous Monum / Build Stone
MT 662 5,226
2741100 Crude or Unrefined Sulphur MT 7,407 30,130 2741900 Other Sulphur MT 4,513 21,679 2772201 Pumice Stone KG 646,564 6,708 2772202 Emery KG 968,478 12,785 2772203 Garnet, Natural KG 752,527 9,789 2772204 Corundum, Natural KG 20,000 177 2772209 Natural Abrasives, NS KG 249,722 4,882 2772900 Pumice Stone, Emery O/than
Crude KG 853,714 10,131
2782200 Graphite, Natural MT 2,669 40,275 2782300 Dolomite cut into Blocks etc MT 40 446 2782501 Magnesia MT 28 1,112
2782502 Magnesium Oxide MT 163 13,848 2782601 Kaolin (China Clay) MT 8,422 122,938 2782602 Other Kaolinic Clays MT 1,382 23,758 2782700 Betonite MT 1,681 21,717 2782901 Fuller’s Earth MT 16 336 2782902 Fire Clay MT 235 4,709 2782903 Andalusite Kyanite &Sillimanite MT 17 213 2782904 Mullite MT 130 569 2782919 Other Clays and Earths, NS MT 3,692 51,816 2783004 Sodium Chloride, Pure MT 418 9,238 2783009 Salt, NS MT 2 35 2784001 Asbestos Fibre MT 558 13,027 2784009 Asbestos NS MT 349 13,588 2785100 Quartz Cut/into Blocks etc MT 8 454 2785201 Mica (Incl Splittings) MT 12 991 2785400 Flourspar MT 576 1,508 2789100 Chalk MT 2,197 25,159 2789201 Barium Sulphate, Natural
(Baryte) MT 299 3,317
2789301 Steatite, Natural MT 12 177 2789302 Talc MT 2,158 26,911 2789303 Soap Stone MT 3,139 1,234 2789509 Siliceous Fossil Meal&Earth NS MT 97 2,404 2789800 Vermiculite, Peplite & Chlorite MT 58 1,354 2789913 Ores and Rare Earth Metals MT 43 405 2789919 Other Mineral Substances NS MT 4,488 133,138 2815000 Iron Ore not Agglomerated MT 45,554 80,099 2816000 Iron Ore Agglomerates MT 1,442,191 2,760,520 2821000 Waste and Scrap of Cast Iron MT 1,189 11,442 2822100 Waste & Scrap of Stainless
Steel MT 4,064 110,782
2822900 Waste & Scrap of Other Alloy Steel
MT 132,673 1,043,988
2823100 Waste & Scrap of Tinned Iron/Stl
MT 36,621 266,268
2823200 Turning, Shavings, Chips, etc. MT 28,353 180,004 2823300 Remelting Ingots of Iron/Steel MT 120 1,000 2823900 Ferrous Waste and Scrap NS MT 206,223 1,492,212 2832200 Cement Copper MT 21 326 2852000 Alumina (Aluminum Oxide) MT 1,712 44,512 2874000 Lead Ores and Concentrates MT 153 10,366 2875000 Zinc Ores and Concentrates MT 20 860 2877000 Manganese Ores &
Concentrates MT 64,394 197,133
2878300 Titanium Ores and Concentrates
MT 280 7,970
2878400 Zirconium Ores and Concentrate
MT 46 2,329
2878504 Rutile Sand MT 167 5,427 2879100 Chromium Ores and
Concentrates MT 134 2,452
2881019 Ash & Residues of Metals NS MT 1,113 11,826 2882100 Copper Waste and Scrap MT 3,280 87,329 2882200 Nickle Waste and Scrap MT 5 410 2882300 Aluminum Waste and Scrap MT 73,167 1,824,686
Source: Foreign Trade Statistics of Pakistan – Imports - 2001-2002
85. From the above Table, it is evident that the major mineral raw materials
imported are iron ores costing Rs 2.8 billion, coking coal Rs 2.6 billion and
phosphate rocks Rs 1.08 billion during the year 2001-2002. These items
constitute major share of imports that is 22.47%, 21.0% and 8.02%
respectively of the total imports. Project portfolios in the subsequent
chapters give the fact sheet of these minerals with recommendations for
the exploitation and utilization of indigenous resources.
86. As Pakistan is endowed with iron ores and phosphate rocks deposits,
latest technologies for their exploration, assessment, mining and
processing may be applied with a view to substituting imports. It has been
reported that a few dull coloured coal seams of Hangu coal deposits
contain low ash content ranging between 5% to 10% and high fixed carbon
of more than 55% is available. These coals have coking characteristics
and needs to be investigated.
Table 6: Export of Minerals (2001-2002) (Rupees in thousands)
2001-2002 Cumulative from July Code Commodity Unit Quantity Value
2731204 Marble, Onyx, Block Uncut/Unpolish
MT 11,964 230,747
2731205 Marble, Onyx Slab not table top MT 2,316 57,397 2731209 Calcareous Monum, Build
Stone, NS MT 322 6,982
2731301 Granite MT 77 850 2731309 Monumental & Building Stone
NS MT 44 629
2732201 Limestone MT 75 308 2732400 Plasters (Incl use in Dentistry) MT 17 165 2733100 Silica Sands and Quartz sands MT 504 1,431 2734001 Concrete and Road Metal
Gravel MT 61 135
2734002 Marble Chips MT 14,638 50,247 2734003 Rail Road Ballast MT 100 329 2734005 Marble Power and Granules MT 3,193 5,075 2734006 Stone Powder (Other than
Marble) MT 1,284 2,927
2734019 Pebble, Gravel & Crush Stone NS
MT 95 483
2772101 Dust and Powder of Garnet KG - - 2772109 Dust & Powder of Precious
stones NS KG 709,076 2,652
2772900 Pumice Stone, Emery o/than crude
Kg 44,000 168
2782300 Dolomite cut into blocks etc. MT 21 118 2782901 Fuller’s earth MT 1,519 21,338 2782902 Fire Clay MT 21 144 2782919 Other Clays and Earths, NS MT 229 2,530 2783001 Rock Salt MT 29,745 49,050 2783002 Sea Salt MT 23,041 8,867 2783003 Table Salt MT 49 402 2783004 Sodium Chloride, Pure MT 110 438 2783009 Salt, NS MT 27,862 15,848 2785100 Quartz cut / into blocks, etc. MT 201 948 2785201 Mica (Incl splittings) MT 12 487 2785202 Mica, waste MT 40 419 2785301 Felspar MT 2,690 3,726 2789100 Chalk MT 815 3,281
2789201 Barium Sulphat, Natural (Baryte)
MT 75 429
2789302 Talc MT 50 214 2789303 Soap Stone MT 171 995 2789919 Other Mineral Substances NS MT 65 254 2821000 Waste and Scrap of Cast Iron MT 447 36,158 2822100 Waste & Scrap of Stainless
Steel MT 188 16,611
2823100 Waste & Scrap of Tinned Iron/Steel
MT 581 4,442
2879100 Chromium Ores and Concentrates
MT 84,153 371,411
2882100 Copper waste and Scrap MT 1,842 176,643 2892900 Waste & Scrap of Prec Metal,
NS MT 90 7,772
Source: Foreign Trade Statistics of Pakistan - 2001-2002
87. According to the study on “EXPORT POTENTIAL OF MINERALS AND
CERTAIN MINERAL BASED PRODUCTS” prepared for Ministry of Petroleum
and Natural Resources by the Institute of Mining Engineers of Pakistan
(1989), export potential of 10 minerals and 8 mineral based products was
established. This study is limited to a few Far Eastern and Middle Eastern
countries only. There would be other regions of the world where similar or
greater potential might be available. Hence this and similar studies need to be
initiated, updated and expanded. The major problem hindering the exports of
non-metallic minerals are: high cost of inland transportation, non availability of
funds for minerals, non existence of supporting institutional arrangements to
look after the affairs of mineral exporters particularly in EPB. Hopefully, after
the resolution of the problems being faced, substantial benefits will be
obtained from invigoration of export of all minerals including gemstones and
semi precious stones.
Table 7: Export Potential of Minerals and Gemstones
S.No. Minerals Clear Potential Marginal Potential
01. Gemstone. (emeralds, ruby, spinal, topaz, aquamarine, kunzite, garnet, chrome-diopside, chrome- tourmaline, quartz, agate, chalcedony, jasper, sodalite, serpentine, turquoise and nephrite)
02. a) Gypsum Rock ---- SriLanka, Singapore, Indonesia, Kenya, Japan
b) Calcined Gypsum Singapore, Malaysia ----- 03. a) Rock Salt Kenya, Singapore, Malaysia ----- 04. a) Refractory Japan, South Korea, Indonesia,
Singapore, Malaysia, Dubai, Saudi Arabia, Kenya, Egypt
-----
b) Dolomite Blocks Japan, Singapore ---- 05. Magnesite (nautural/calcined) Japan, S. Korea, Thailand,
Malaysia, Indonesia, Singapore, Saudi Arabia
----
06. Blast Sand (Silica) Saudi Arabia, Dubai, Abu Dhabi, Bahrain, Kuwait, Oman
----
07. Fuller’s Earth (activated/natural) Malaysia, Singapore, Indonesia ---- 08. Barytes (API ground/natural) Malaysia, Singapore Indonesia Gulf countries
(API) ground 09. a) Onyx (articles/Slabs) Japan, S. Korea, Singapore,
Malaysia, S. Arabia, Kuwait, Dubai
----
b) Marble (Blocks) --- Japan, S. Korea, Singapore, Malaysia, Saudi Arabia, Dubai, Kuwait
10. Granite (Blocks/Slabs) Japan, S. Korea, Malaysia, Singapore, S. Arabia, Abu Dhabi
---
11. Precious & Semi-Precious Stones (rough/worked)
Japan, South Korea, Singapore, Thailand, Saudi Arabia, Dubai, Abu Dhabi
----
12. Chromite (met.gd.) --- Japan Source: Study on export potential of mineral and certain mineral based products, prepared for M/o Petroleum & NR by the Institute of Mining Engineers of Pakistan (1989)
Table 8: Export Potential of Mineral Products
S.No. Mineral Products Clear Potential Marginal Potential 01. Barium Carbonate (high grade) --- Saudi Arabia
02. Heat Insulating Bricks Indonesia, Singapore,
Saudi Arabia
---
03. Chromium Oxide (tech. Grade) Thailand ---
04. Ferric Chloride --- Malaysia
05. Magnesite Refractories S. Korea, Singapore,
Thailand
Saudi Arabia, Oman,
Qatar
06. Magnesium Carbonate Thailand, Indonesia,
Malaysia
---
07. Magnesium Hydroxide (high
grade)
Turkey Japan, South Korea
08. Magnesium Oxide Japan ---
09. Calcium Carbonate (Precipitated) S. Korea, Thailand Malaysia
10. Mangesium Dioxide S. Korea, Thailand,
Malaysia
----
11. Sodium Hydrogen Sulphide --- S.Korea, Malaysia
12. Sodium Sulphate --- Singapore, Dubai, Abu
Dhabi, S. Arabia,
Egypt, Kenya
Source: Study on export potential of mineral and certain mineral based products, prepared for M/o Petroleum & NR by the Institute of Mining Engineers of Pakistan.
CHAPTER-IV
EXPLORATION AND EVALUATION OF MINERAL DEPOSITS (Guidelines)
88. Mineral Industry is complex, complicated, heterogeneous, require long
gestation period, risky and capital intensive. Hence multiphase exploration programmes need to be identified, planned and organized. Short cut, crisis oriented, poorly conceived and mismanaged crash exploration programmes always lead to unsuccessful mining ventures wherein both capital and efforts invested are difficult to retrieve. Over the past four to five decades, Pakistan mineral exploration efforts by federal and provincial geological and mineral development organizations are largely of such abhortive programmes. In order to avoid these pit falls, it is a requirement that the present and future strategies of the mineral exploration programmes must be based on systematic geological methods. Further modern surface and subsurface exploration techniques should be utilized for the investigation of potential zones.
89. With the above objectives in view, broad guidelines that may serve as
framework for detailed exploration programmes are provided. These guidelines are successfully tested in important mineral producing countries and most geo-scientists in Pakistan know them well. Doubtless, properly planned operations would also attract much needed local and foreign investments and expertise into the mineral sector in the country.
Phase I - Technical Studies and Planning 90. This preliminary phase includes literature studies, delineation of prospective
zones and selection of the target areas. This is followed by the preparation of conceptual methods, assessment of possible modes of mineralization and appropriate working hypothesis and methodology. In this context, a mineral deposits database system was installed on IBM/PC/AT Computers at the GSP headquarters in Quetta and at the National Geodata Centre in Islamabad.
(Ref: Asian Development Bank study – T.A. No. 1167 PAK – 1993).
Exploration and Evaluation of Mineral Deposits (Guidelines)
Phase – II – Exploration Phase 91. This phase comprises of strategic planning and the application of appropriate
geological, geophysical, geo-chemical techniques backed by drilling and
studies in laboratories. In the event of promising discoveries, it is necessary to
study the genesis, mineral assemblage, chemical and mineralogical
composition, mode of emplacement and structural, lithographic and other
geological controls of these deposits in detail. This phase generally results in
potential mineral discoveries and identification of promising host rocks and
favourable structures.
Geological Mapping 92. The geological mapping at large scale of promising areas constitute the basic
field work required for geochemistry, geo-physics, drilling and test mining
operations, planning of taking samples, mineralogical investigations and for
other subsequent operations. Remote sensing and photogrammetric
techniques are used for the preparation of geological maps.
Geo-physical studies 93. Deep seated mineralized bed rock investigations are carried out by
geophysical studies that includes seismic, gravity, resistivity, ground and
aerial magnetic, electrical and radiometric surveys. The application of any one
or combination of these methods, depend on the nature of mineral deposits to
be explored.
Geo-chemical Studies 94. Reconnaissance of unknown mineralization close to surface through the
analysis for trace elements is known as geo-chemistry.
Mineralogical, Petrological, petrographic, strategraphic, sedimentological studies
95. The data obtained through these studies help in determining favourable zones
and geological formations for exploration.
Exploration and Evaluation of Mineral Deposits (Guidelines)
Drilling 96. Drilling is important to determine the extension of mineralization, collection of
cores, cuttings, preparation of core logs and geophysical logs for lab tests and
studies.
Technological Testing 97. The samples collected through drilling and test mining operations are tested in
the laboratories for mineralogical examination and beneficiation studies for
designing Mineral Dressing Flow Sheet.
CHAPTER - V
GEOSCIENCE ORGANIZATIONS
98. Summarized version of the functions of geosciences organizations, strength of
their scientific personnel and information regarding the availability of
sophisticated equipment is given below. The details may be seen in
Annexure-3.
A. Geological Survey Of Pakistan (GSP) Department: Geological Survey of Pakistan
Station: Head Quarter – Quetta
Functions: Systematic geological mapping on appropriate scale, preliminary mineral exploration, geo-chemical and geophysical surveys, test mining, drilling operations, publication of the results of scientific activities, advisory role in matters connected with geology and mineral resources.
Geoscinetists: Grade – 21(1), Grade – 20(4), Grade – 19(15), Grade – 18(52), Grade – 17(143), Grade – 16(44)
Divisions/Branches of GSP: Regional offices at Islamabad, Lahore, Karachi, Quetta and Muzaffarabad. Highly specialized Laboratory facilities remain at the GSP Head Quarter, Quetta. At the HQ are located laboratories of Analytical Chemistry, Geophysics, Petrology, Mineralogy, Palaeontology, Photogeology, Photogrammetry and Surveying. It has also modern facilities for reports and maps printing and photo reproduction in its publication branch. Drilling Directorate with its 12 drilling rigs is capable of drilling upto 2500 feet for geologic and mineral investigations. A well equipped workshop looks after maintenance of drilling rigs and a fleet of heavy and light field vehicles.
Division: Analytical Chemistry Division
Branch: Analytical Geo-Chemistry Branch
Station: HQ Quetta
Functions: To carry out analyses of rocks & minerals & to undertake geo-chemical exploration surveys
Scientific Personnel: Quetta – 5, Lahore – 7, Karachi – 5, Peshawar – 1
Equipment: Atomic Absorption Spectophotometer, Ion Analyser etc.
Geoscience Organizations
Division: SEDIMENTARY GEOLOGY
Station: Quetta
Functions: Research in Cenozoic Vertebrate Paleontology and Continental Stratigraphy
Scientific Personnel: 4 sedimentalogists
Facilities: Well documented fossil reference collections
Division GEOPHYSICAL
Station: HQ Quetta
Functions: Geophysical surveys leading to deciphering the subsurface configuration of rocks, minerals, oil, gas and coal resources.
Equipment: gravitymeters, magnetometer, torsion magnetometer, proton magnetometer, seismic equipment, resistivty meters, electromagnetic ground equipment, logging equipment.
Scientific Personnel: Quetta – 6, Lahore – 7, Karachi – 2, Islamabad – 3.
Division SERVICES DIVISION (Drilling)
Station: HQ Quetta
Functions: Drilling
Equipment: 12 drilling rigs, mud pumps and generators.
Engineering Personnel: Quetta – 11, Karachi-4, Lahore – 4
Branch- PETROGRAPHY
Station: HQ Quetta
Functions: Provide assistance in conducting petrological and mineralogical studies.
Equipment: Laboratory scale crushers, pulverizers, microscopes, spectometer, diffraction radiometric analysis equipment, Isodynamic magnetic separator, rock cutting and polishing machines etc.
Scientific Personnel: Quetta – 3
Branch: Photogeology and Photogrammetry Branch
Station: HQ Quetta
Functions: Preparation of large scale topographic maps to meet the needs of geological, geophysical, geochemical and other ground survey projects.
Equipment: Kelsh Plotter, theodolite, electronic telescopes etc.
Geoscience Organizations
Scientific Personnel: Quetta – 5
Directorate- Publication
Station: HQ Quetta
Function - Off-set printing, photo enlargement equipment reduction facilities, photo laboratory cartographic section etc.
Scientific Personnel: Quetta – 3
Branch: GEOSCIENCE RESEARCH CENTRE
Station: Islamabad
Functions: High tech research complex aimed primarily to support, supplement and substantially improve and refine the GSP’s capabilities in the fields of geological mapping, mineral exploration and basic and applied Research.
Scientific Manpower:
Equipment: Electronprobe, micro-analyser, X-Ray diffractometer, atomic absorption spectrophometers, DTA/TGA, image analyser etc.
99. There are 7 Divisions/Directorates/Centre of GSP established in Quetta
(Balochistan), Karachi (Southern Area), Lahore (Northern Area), Islamabad
(Environmental and Engineering Division) for Capital and Northern Areas,
Peshawar (NWFP), Muzzafarabad (AJK). Further there are other branches
such as Museum Branch, Planning, Coordination and Information branch,
Geo data and Information section.
B. Pakistan Mineral Development Corporation
Corporation: Pakistan Mineral Development Corporation
Station: Islamabad
Functions: Large scale geological mapping, drilling, test mining operations, development of mines and marketing of minerals.
Technical Personnel: Mining Engineers – 21, Geologists – 8
Geoscience Organizations
C. Federally Administered Tribal Areas Development Corporation (FATADC)
Corporation: FATADC
Station: Peshawar
Functions: Mineral Directorate carries out large and small scale geological mapping for the evaluation of mineral prospects. Facilities for chemical analysis exist.
Technical Staff: Economic geologists-5.
Equipment: Seismograph, resistivety unit, down hole bore TV camera set, geo logger etc.
D. Pakistan Council of Scientific and Industrial Research Laboratories –
PCSIR
Centre: Mineral and Metallugy Centre
Station: Lahore
Functions: R & D studies on laboratory and pilot plant scale in mineral processing and extractive metallurgy, development of mineral based products, mineralogical and petrological examination, training facilities for mineral and metal industries and universities, feasibility reports.
Technical Personnel: 40 scientific staff including 10 Phd’s.
Equipment: Microscopy, geochemical analytical equipment, DTA/TGA, electron micro probe, advanced facilities for mineral beneficiation, pilot plant, for mineral and material evaluation.
Centre: Glass and Ceramic Research Centre
Station: Lahore
Functions: Applied research for utilizing indigenenous raw materials, import substitutions, quality control services and product development.
Tech. Personnel: Phd’s – 6, Msc – 20, Bsc to Matric – 15.
Equipment List: Scanning microscope, high temperature sintering furnace, ISV-VIS recording spectrophotometer etc.
Geoscience Organizations
Centre: Fuel Research Centre
Station: Karachi
Functions: Develop, promote, transfer promising technologies related to fuel science and environmental issues, to provide comprehensive analytical/ consultancy/evaluation services and to promote institutional excellence.
Technical Staff: 20 scientists, technologists, Phd’s, Msc, M.S, B.E diploma holders/ technicians.
Equipment: Proximate analyser, sulphur determinator, elemental analyzer, automatic calorimeter, ash fusion determinator, crucible swelling index etc.
Division: Mineral Technology Division
Station: Peshawar
Functions: Comprises four sections namely geochemistry, mineral evaluation and utilization, building material and glass and ceramic sections. Area of specializations includes geochemical exploration and petrographic studies, laboratory and pilot plant studies on utilization of rocks and minerals, mineral based industrial products, training of technical personnel in specified fields.
Technical Staff: 20 including 7 Phd’s, 3 M phil and 13 Msc/Ms
Equipment: X-ray diffraction, DTA, TGA, DTC, Spectrophometers, polarizing microscope etc.
E. Punjab Mineral Development Corporation
Station: Lahore
Function: To explore, develop, exploit and market, all types of minerals found in Punjab. Role model for private sector and to extend Advisory Services.
Equipment: Drilling Rigs, Compressors, bulldozers, loaders, dumpers etc.
Manpower: Mining Engineers – 21, Geologists – 9
Geoscience Organizations
F. Balochistan Development Authority (BDA)
Station: Quetta
Functions: Exploration and Development of Industrial and Mineral activities of Balochistan. Presently BDA is engaged in the exploration of Copper – Gold potential areas at Reko-Diq with TCC & BHP Billiton of Australia and other activities for the development of fluorite deposits at Dilband.
Tech. Personnel: Mining Engineers – 3, Geologist – 4 , Chemist – 2
Equipment List: Not provided
G. AZAD KASHMIR MINERAL AND INDUSTRIAL DEVELOPMENT
CORPORATION – MUZAFFARABAD
Functions: Assessment of minerals potential, preparation of feasibility reports about mineral deposits and establishment of mineral based industries.
Tech. Manpower: Mining Engineer – 2, Geologist – 7
Equipment: Atomic absorption spectorphotometers, microscopes, compressors, pneumatic drills, drilling rig, curshers etc.
CHAPTER-VI
NATIONAL MINERAL POLICY - 1995
BRIEF FEATURES OF NATIONAL MINERAL POLICY (1995) INCENTIVES FOR INVESTORS
Objectives 100. The objective is to expand mineral sector activity with a view to accelerating
the development of mineral resources of the country with private investment.
This would in turn enhance the contribution to GDP and lend support to the
social uplift programmes particularly in mineral bearing areas.
Constitutional Position – 1973 101. With the exception of oil, gas and nuclear minerals and those occurring in
special areas: Federally Administered Tribal Areas, Northern Area, Azad
Jammu and Kashmir and off shore zones, Provincial Governments are
responsible for regulation, development and exploitation of minerals which fall
in their domain. Geological Surveys, Preliminary Evaluation, Processing and
upgradation of Minerals are Federal Functions. The subject of regulation of
labour and safety in the Mines appears on Concurrent list.
Background 102. In order to have a National Mineral Policy, Cabinet vide its decision (Case No.
288/23/81) decided, amongst others, that the proposals and
recommendations contained in the summary submitted by M/o Petroleum and
Natural Resources, should be integrated with the exercise separately
entrusted to the Secretary, Planning Division. Accordingly as a follow up on
the then President’s Directive and the Cabinet Decision. The Planning and
Development Division held extensive consultations and deliberations with the
Federal and Provincial Governments and private sector and produced findings
in the form of a report. In the light of the aforesaid exercise as supplemented
National Mineral Policy-1995
by further investigations and studies a draft NATIONAL MINERAL POLICY
was formulated. To consider this document and to formulate its final version
for submission to the Cabinet, a National Mineral Development Committee
comprising operational federal ministries, provincial governments, mineral
development corporations and private sector agencies was constituted under
the Chairmanship of Secretary, Ministry of Petroleum and Natural Resources.
In the same vein, Deputy Chairman, Planning and Development Division,
Government of Pakistan vide his letter of dated 4th June, 1984 addressed to
the Secretary, Ministry of Petroleum and Natural Resources, Government of
Pakistan provided copies of 15 documents including Draft Summary on
National Mineral Development Policy, prepared in the Planning and
Development Division for necessary action (Annexure - 4). This shows that
the efforts started as back as 1981 and resulted in the draft summary on
National Mineral Development alongwith 15 documents prepared by Planning
and Development Division for its presentation to the Cabinet. However, the
first National Mineral Policy (NMP) formulated with the consensus of all the
provinces was announced in 1995 by the Ministry of Petroleum and Natural
Resources. A number of fiscal and regulatory incentive were offered which
paved the way for private investment. Regarding the status of implementation
of (NMP), there was un-willingness from the side of some of the provinces to
its full implementation. Decisive action to remedy this situation was taken by
the Government when Chief Executive of Islamic Republic of Pakistan in early
June 2001 ordered the provinces to implement NMP within 30 days. The
order was accompanied with a grant to the provinces of about 1 million US$
equivalent for the establishment and strengthening of provincial technical
departments. At the same time, a considerable funding package was
approved for the Geological Survey of Pakistan to complete 1 is to 50,000
scale mapping programme and air-borne survey programme. (Cabinet
Decision of 4/6/01). The Ministry of Petroleum and Natural Resources is of the
view that several provinces, have now taken steps to implement NMP.
National Mineral Policy-1995
Institutional Arrangements 103. To review the implementation of NMP and remove bottlenecks in its
implementation and investment in the mineral sector the Federal Government
had established a political consultative forum by the name of Mineral
Investment Facilitation Board (MIFB) with the Prime Minister as chairperson.
104. To provide all necessary support required by the private investment for
mineral exploration and development in the provinces and Special Areas,
Mineral Investment Facilitation Authority (MIFA) headed by Chief Minister
(Minister Incharge KANA in respect of Kashmir and Northern Areas) have
been established.
105. Separate Deptts. of Mines & Mineral Development have been established in
all provinces. Responsibilities and functions are to develop mineral resources
granting licences and leases of mining areas regulating and monitoring
activities in the mineral sector including collection of royalties. The provincial
deptts. of mines and minerals also maintaining uptodate master plans
showing positions of all exploration licences and leases granted, renewals
assignments and surrenders of mineral titles, relinquishment of acreage etc.
and make this information public through regular publication of complete
details in the official gazette. Deptt. of mines and minerals is composed of
three divisions (1) Licencing Division (2) Exploration Promotion Division and
(3) Inspectorate of Mines.
Regulatory Regime 106. The Mineral Concession Rules agreed to by the federal and provincial
governments provide four types of Mineral titles as under:
Reconnaissance Licence (RL) 107. Non-exclusive, non renewable for one year for an area of 100 to 10,000 sq.
km. Request is to be decided within 120 days of complete application.
National Mineral Policy-1995
Exploration Licence (EL) 108. Over 10% of area of RL and not exceeding 1000 sq. Km for 3 years with two 3
years each renewals on area 50% reduced each time. Application to be
decided with 120 days.
Mineral Deposit Retention Licence (MDRL) 109. On account of unfavourable economics, area could be retained for 2 years
with one year extension. Decision within 180 days.
Mining Licence (ML) 110. For areas upto 250 sq. Km for 30 years with 10 years extension. Decision has
to be taken within 120 days.
111. The provincial governments and special areas have upgraded their mineral
laws and royalty rates to bring it in line with the requirement of large-scale
investors. All the local levies will be satisfied from royalty collection.
112. Existing royalty rates of construction and industrial minerals will continue while
special uniform royalty rates are being introduced for following minerals on
advalorem basis on gross value:
i) Precious stones 10% iii) Precious metals & semi-precious stones 3%
iii) Base metals 2% iv) Others 1%
(Other than i.ii, iii above) 113. Following rates of royalty on coal is being charged by the provinces with 15%
sales tax per ton:- a) Government of Balochistan Rs. 20/- per tonne. b) Government of Punjab Rs. 35/- per tonne. c) Government of Sindh Rs. 60/- per tonne. d) Government of NWFP Rs. 25/- per tonne
National Mineral Policy-1995
114. Foreign companies are free to apply for and be granted licences without need
for incorporation locally. However, no mining lease will be given until foreign
companies are incorporated locally.
115. GOP has recently granted EPZ status to certain large mineral projects being
established in remote areas of country namely Saindak and Rekodiq copper -
gold projects in Chagai District, Balochistan. A brief description of Export
Processing Zone is as under: -
116. An Export Processing Zone established under the Export Processing Zone
ordinance, 1980 is exempt from the provisions of foreign exchange Act, 1947.
Therefore a company incorporated in Pakistan to whom a mining lease is
issued for the area comprising the zone does not require the special
permission of the State Bank of Pakistan to hold, maintain or fund a foreign
exchange account outside of Pakistan. Additionally pursuant to SRO
1248(1)/81 dated 23rd November 1981, an Export Processing Zone is exempt
from all the provisions of the State Bank of Pakistan Act 1956 and the
Banking Companies Ordinance 1962.
117. By Notification No. SRO (1) / 2002 dated 13 March, 2002 issued by the
Ministry of Industries & Production, the Govt. of Pakistan, a part of the
licensed area under Reko Diq EL measuring about 15 sq. km has been
declared to be an Export Processing Zone for the H4 starter project shall be an
Export Processing zone for a period of 12 years reckoned ten years of
production period. This requires that all transactions in the Export Processing
Zone be in foreign convertible currency and that all other rules and regulations
of Export Processing Zone Authority apply.
Fiscal Regime 118. In order to reduce front-end cost of mineral exploration projects the
duties/taxes on imported machinery/equipment/spares, are being rationalized
as under:
National Mineral Policy-1995
119. During exploration of mines and until commencement of commercial
production, custom duty at the rate of 5% and no sales tax would be levied
on import of mining machinery and equipment. However, on start of
commercial production custom duty will be charged at the rate of 10%.
120. For local manufacture of mining machinery 10% custom duty on import of machinery and components with no sales tax while 10% custom duty and
15% sales tax will be charged on import of raw materials.
121. With-holding tax rate on dividends paid to corporate non-residents will be set
at 7.5% but adjustable against final tax liability.
122. With-holding tax levied on payments made to non-resident contractors
engaged in mining operations will be set at 6%.
123. No with-holding tax on interest paid to non-residents in respect of availed
approved loans.
124. No sales tax on Minerals, which are exported.
125. Additional profit tax beyond a threshold of profitability will be levied in case of
large scale mining operations/investment, on agreed rate after negotiations
with the investors.
126. Expenditure incurred on project development will be allowed 25% deduction per annum for fresh development effort.
127. The Provincial Governments will upgrade their mineral laws and royalty rates
to bring it in line with the requirement of large scale investors. Local levys will be satisfied from royalty collection.
National Mineral Policy-1995
128. Up-dated Summarized version of Fiscal Regime is attached (Table 9). Arbitration 129. Any question or dispute between a foreign investor and the Government shall
be submitted to International Centre for Settlement of Investment Dispute (ICSID) for arbitration. Disputes solely involving Pakistani Parties will be settled by arbitration in Pakistan.
Summarized version of World Bank Mineral Sector Mission report “Pakistan –
Mineral Sector Policy Note” containing recommendations to meet International Practice” is annexed (Annexure-4).
National Mineral Policy-1995
Table 9: Summary of Fiscal Regime
Section Taxes Rate as per Mineral Policy, 1995
Upto date status 9.2 Income Tax
9.2.1 Corporate Tax 30% for local listed companies 35% for private, non resident companies
9.2.2 Minimum Corporate Tax 0.5% of the declared turn annually
9.3 With-Holding Tax 0.75% with 0.25% increase on export of
minerals from 1st July, 2000
9.3.1 Dividends 7.5% 9.3.2 Non-resident Contractors 6% of gross payment
9.4 Other Taxes
9.4.1 Sales Tax Nil on Export 9.4.2 Additional profit Tax Negotiable 9.4.3 Zakat Non-Muslim exempted
9.5 Concession on Imports
9.5.1 Import of machinery (not
manufactured locally) Nil
9.5.2 Locally manufactured
mining machinery Custom Sales Tax
10% 15%
10. Royalty
10.1 Coal As decided by provinces 10.2 Precious stones 10%
Semi-precious stones 3% Base metal 2% Other than above 1%
(Khurram Bhatti)
Deputy Director
Profile of the Top 15 Mineral Projects Coal
CHAPTER-VII
1. COAL
Status and Scope OVERVIEW 130. COAL is an extremely complex heterogeneous material formed by geological
processes. It is part of a metamorphic series ranging from peat, through lignite to sub-bituminous and bituminous coals to anthracite. In Pakistan, one of the biggest good quality lignite deposits in the world estimated to contain 175 billion tons of coal is located in southern part of Sindh province in ‘Thar’ area of district Tharparker. All the coal fields of Pakistan located in Sindh, Baluchistan, Punjab and NWFP provinces range in quality between lignite to sub-bituminous ranks and vary in heating value from 5000 BTU/Lb to 13000 BTU/Lb. These coals, except Thar Coal, contain high sulphur & ash contents and hence, are used mainly for brick kilns and power generation through Fludized Beds Combustion Technology. Thar coal-fields have sulphur 1 to 2 percent, ash content 6 to 7 percent and fixed carbon 16 to 17 percent and its average heating value is 5,774 BTU/Lb. The local coals are not suitable for coke making because of non-occurrence of medium volatile bituminous coal. A coal washing plant based on Sharigh Coal Mines in Baluchistan was set up in 1980 but later on abandoned due to the non-acceptance of washed coal by Pak-Steel as it contained high sulphur content and posed operational problems.
131. In Pakistan, nearly 80% coal mines are being operated by small mine owners.
Average annual coal production is 4.5 million tons, out of which more than 90% is consumed in brick-kiln industry. The share of coal in overall energy mix during the last five decades declined from 68% in 1948 to 35% in 1958 and 5% in 2002. The share of coal in electricity generation as on December, 2002 in various coal producing countries including Pakistan is as under:-
Profile of the Top 15 Mineral Projects Coal
Table 10: World wide share of Coal in Electric Power Name of Country Share of Coal in Electric
Power Generation (%) USA 52
UK 58
Australia 77
Germany 52.5
China 78
India 77
S. Africa 88
Poland 96
Czech Rep. 72
Greece 67
Denmark 47
Netherland 28
World Average 39 Source: World Coal Institute, London, December, 2002. Share of coal in Electric Power Generation in Pakistan is less than 1%.
132. The coal industry suffered a severe set back in competition with the cheaper
and subsidized sources of energy, which discouraged the use of coal for
industrial purposes. Due to this situation, a number of chemical and cement
plants operating on coal were converted to natural gas in late 60’s and
subsequently to furnace oil. Now, under the present socio-economic scenario
of energy requirements, there are compelling factors to maximize energy
reliance on coal and its utilization. The following paragraphs describe the
status of coal industry and potential of coal development & utilization.
STATUS OF COAL INDUSTRY
Coal Reserves 133. According to the estimates prepared by the Geological Survey of Pakistan
(GSP), Pakistan has total coal reserves of 185 billion tons, out of which 184
billion tons are in Sindh: (Thar 175.5 billion tons, Lakhra 1.3 billion tons,
Sonda-Thatta 3.7 billion tons, Meting – Jhimper 0.16 billion tons); 0.217
billion tons in Baluchistan, 0.235 billion tons in Punjab and 0.09 billion tons in
NWFP. Detailed Coal Geological and Exploration work is under way to bring
these resources from geological reserves category to measured reserves
category for determining their mineability and utilization. Map showing the
location of major coal fields may be seen at Fig -8.
Coal Quality and Selling Price 134. The indigenous coals are lignite to sub-bituminous and are characterized by
marked physical and chemical variations. This diversity coupled with high ash
and sulphur contents pose difficulties to match its quality according to
consumer’s specifications in industrial sector. The heating value of coals in
various provinces, as prepared by GSP is as follows:
Sindh Thar 5774 BTU/Lb Lakhra 5500 to 9000 BTU/Lb Balochistan 9600 to 15000 BTU/Lb Punjab 9400 to 14000 BTU/Lb NWFP 11,000 to 14,000 BTU/Lb
135. The coals of Sindh region because of their low heating value and high sulphur
content fetch low price ranging Rs 400 to Rs 600 per ton, Balochistan coal
has the highest heating value and its market price at Quetta is Rs 1500 to
2100 per ton, coal from Punjab has wide range of quality with market price
ranges Rs 1100 to 1800 per ton and Hangu coal of NWFP is available at Rs
1300 to 2000 per ton. These are the sale prices at mine mouths and do not
include transportation cost. (subject to revision and updating). Details of coal
resources and quality of major coal fields are tabulated in Table 11 & Table
12.
Coal Mining/ Production 136. Coal Mining is mainly controlled and operated by small mine owners, who are
to a large extent, financially and technically incapable of investing capital and put in their skills on a rationale basis or arranging essential mechanization for systematic operation. The mines in Punjab are moderately inclined (30o) whereas the mines in Baluchistan, are quite steep (30o to 70o) hence, Long Wall Advance Mining Method is employed. The working in NWFP is more or less of similar nature as in Punjab. In Sindh province, the coal seams are relatively flat, hence Room and Pillar Mining Method is deployed. Most of the coal mines have reached more than 3000 feet depth where travelling of working persons consumes almost major part of their energy reserves (around 80%), resulting in low productivity and low production. Reported coal production during 2001-2002 was 3.3 million tons (Baluchistan 1.75 million tons, Sindh 1.02 million tons; Punjab 0.51 million tons; and NWFP 0.06 million tons). It has been estimated that about 50% coal production goes unreported hence actual production is in the range of 4.5 to 5.0 million tons.
STEPS TO DEVELOP AND PROCESS COAL 137. According to the Sindh Coal Authority, an exclusive agency to harness Sindh
Coal resources, following initial steps are underway for the development and utilization of Thar Coal Fields. Map showing the locations of I to IV Blocks containing coal is at Fig 9 while the resources of coal in I to IV Blocks investigated so far through drilling are at Table 13 and Table 14.
THAR COAL FIELDS Feasibility Study of Thar Coal Mining
138. This study has been awarded to a German company namely, M/s Rheinbraun Engineering (Consultant) through International competitive bidding. The scope of the study is evaluation and determination of mineability including extraction cost and selling price of Thar Coal for its use as a fuel for power generation. The consultants are concentrating their geo-scientific activities in Block I of Thar Coal, covering an area of 122 sq. km. The duration of the study is 18 months starting from April 2003.
Detailed Coal Geological Investigations 139. M/s. Shenhua Group Corporation limited, China have expressed interest for
the establishment of 2 x 300 MW mine mouth coal fired power station and development of Thar Coal Mines on BOT basis. In this context, detailed coal geological Investigations in Block II over an area of 55 sq-km. is underway through drilling and test mining operations. The areas of interest include integrated coal fired power generation, coal extraction, coal briquetting, coal pulverization and coal beneficiation.
Study on Underground Coal Gasification 140. A Memorandum of Understanding (MOU) has been signed with Middle East
Link (Pvt) Ltd. Australia for the underground gasification at Thar Coal Fields . LAKHRA COAL FIELDS Coal Washing Plant 141. The Government of Sindh has signed a Memorandum of Understanding
(MOU) in November 2002 with M/s Shahzad International, Islamabad for the establishment of coal washing plant at Lakhra for power generation. The timeframe for the setting up of plant is 18 months.
Smokeless Coal Briquettes 142. In 1989, Pakistan Mineral Development Corporation got a feasibility study
conducted for the manufacturing of Smokeless Coal Briquettes from Lakhra coal with the technical and financial assistance of Japan International Cooperation Agency (JICA). JICA study concluded that it was a technically sound and commercially viable project. Further, M/s Oak Bridge National Laboratories, Tennessee USA under USAID programme have also established its viability. Pakistan Council of Scientific and Industrial Research (PCSIR) has also undertaken a study and concluded that a plant of 50,000 tons per annum capacity is viable with pay back period of around 4 years.
Manpower and R&D Infrastructure for Coal 143. Overall employment of labour force is 0.3 million working in more than 5,000
operating mines. The input and services of various disciplines dealing directly with coal chain include coal geologists, coal petrologists, coal mining engineers, coal processors, coal technologists, pulverized coal injection technology experts, boiler engineers, economists, etc. Fortunately manpower of relevant disciplines with necessary academic and professional background and skills are available. In addition, coal testing laboratories for the determination of petrographic and chemical properties and identifications and quantifications of various parameters for designing of coal washing, coal briquetting and coal utilization plants are also available in Pakistan.
POTENTIAL OF COAL DEVELOPMENT AND UTILIZATION Coal Exploration and Development 144. Feasibility Studies of Thar Coal Fields for the demarcation and quantification
of mineable reserves, their mineability and utilization for power generation, underground gasification and improvements of coal quality through washing of Lakhra Coal Field are being carried out. However, regarding enhancement of production capacities of existing operating coal mines to meet the ever increasing demand of coal in industries, it is necessary to set up mine equipment renting / leasing / selling shops by public and private sectors. This
will be very beneficial for small coal mine owners who are constantly in need of drilling machines, air compressors, haulages, tracks, steel ropes, fans, picks, safety equipment, mine tubs, etc. Similarly, coal washeries may be established near these shops for the value addition of coal.
Coal Utilization in Cement 145. Domestic production of cement in 2001-2002 was around 10 million tons.
Phased conversion of cement plants from fuel oil to coal is under-implementation. According to one estimate, about 1 million tons of coal (costing US$ 30 million) has been imported and blended with 0.9 million tons of local coal is used in the cement plants during last year. Efforts need to be made for the maximum utilization of local, washed, processed and sized coal. Conversion of entire cement industry would require around 2.5 million tons of coal annually.
Coal utilization in Sugar Industry 146. There are 76 sugar mills in the country, which are producing more than 10
million tons of bagasse as bye-product. The bagasse is used mainly for burning in the boilers for producing steam in power generation to meet the electricity requirement of sugar mills. The electricity over and above their requirement is sold to WAPDA. More than 1 million tons of writing paper (conversion factor 5.46 tons of bagasse produces one ton of paper) with 15 to 20 percent of imported or locally produced eucalptus wood pulp (long fibre) can be produced with well established Chinese Technology. China National Machinery and Export Corporation, offering complete set of technology equipment for printing and writing paper manufacturing plant with capacity of 50 tons per day, submitted a proposal. This proposition is possible if alternative fuel at competitive rates is made available to sugar mills. In 1989, JICA submitted a Feasibility Study based on Lakhra Coal Fields and concluded that it is technically and commercially viable proposition and can substitute bagasse, kerosene oil, fire wood and furnace oil. Hence possibility of coal use in sugar mills need to be explored. It has been estimated that the sugar mills based on coal need 4000-4500 tons of coal per day i.e. 1.0 to 1.5 million tons coal per annum.
Manufacturing of Smokeless Coal Briquettes 147. To meet the ever increasing energy and environmental crisis, the use of
abundantly available coal reserves has to be increased manifold to substitute imported furnace oil and kerosene oil that costs billions of dollars in foreign exchange. Studies carried out by foreign and local consultants have concluded that it is a viable project to manufacture smokeless coal both for domestic and commercial uses as its calorific value (Btu/Rs) is highest as compared to wood, kerosene oil, charcoal etc. Detailed Feasibility Study / Bankable Document need to be prepared without further wastage of time.
Production of Soft Coke for Foundry Industries 148. Review of available literature indicates that dull coal of Orakzai Agency
contains less ash (5 to 10%) and high fixed carbon content (55 to 62%). It is suitable for the production of soft coke to meet the requirements of foundry and engineering industries. Pakistan Mineral Development Corporation (PMDC) is working in the Orakzai and Kurram agency and may identify and demarcate dull coal areas for testing of its coking properties. There are more than 80 coal mines in the area producing more then 46,000 tons coal per annum. GSP have estimated coal resources in the area as 80 million tons. Bright prospects exist for more coal resources as foreign investors are taking interest in its development as per verbal communication with D.G, Mines & Minerals, NWFP.
Coal Utilization for Power Generation 149. Inferior quality coals (lignite/peat) are being used in developing as well as
developed countries for power generation, cement and other heat intensive industries. Pakistani coal can be used successfully for similar purposes, provided determined efforts are made.
Use of Coal in Boilers 150. There are more than 4000 boilers in the country that use furnace oil or natural
gas. Replacement of gas/oil with smokeless coal may be explored.
CONCLUSIONS AND RECOMMENDATIONS 151. The foregoing paragraphs indicate the importance of abundantly available
coal in Pakistan as a source of energy. This has become all the more important as Hydel Power is on the decline, Thermal Power generation is total drain on foreign exchange while gas resources are depleting. In order to thoroughly understand and gauge the full spectrum of coal chain, a multi-disciplinary integrated approach is required. This calls for inputs and services of various disciplines such as: i) coal mining geologist, ii) coal petrologist, iii) coal mining engineer, iv) coal washer/processor, v) coal technologist, vi) coal mine owners, vii) pulverised coal injection technology expert, viii) economist to work out comparative economics of different fuels (furnace oil, gas, baggase, imported/local coals, etc., ix) industrial boiler engineer and boiler fabricator, and x) co-ordinator, capable of understanding the fundamentals of various disciplines and assist in their interfacing for developing coal chain. Emphasis should be given for the preparation of Isopach maps of Lakhra Coal Fields by GSP. Fortunately, Pakistan has the scientists and technologists of all these disciplines. It is, therefore, recommended that a committee on utilization of coal in industries may be set up under the convenorship of President, Institute of Mining Engineers Pakistan and/or Managing Director, Sindh Coal Authority, consisting of members of above mentioned disciplines. Ministry of Industries and Production through Experts Advisory Cell, being the major beneficiary of coal utilization in industries, may act as lead Ministry for initiating and completing the task for setting up of coal utilization committee.
152. In the same vein, two prong strategy has to be considered and followed for
the exploration, development and utilization of coal. 153. Regarding Thar Coal Deposits, necessary and relevant studies for
exploration, development and utilization of coal for power generation and gasification have been initiated. It is necessary to keep their developments under constant review.
154. The productivity, production and safety of the existing coal mines can be
enhanced by introduction of suitable equipment shops in the coal mining
areas as spelled out in the Ninth Five Year Plan. In order to completely define
this proposal, it is an early requirement that a study may be undertaken to
determine potential user requirements, the mechanics involved, cost and
funding requirements. The best way to initiate the study is to collect
information regarding mining operations, inventory of equipment available, the
types of equipment that could most usefully be introduced and the possible
range and scale of requirement. Necessary and suitable questionnaires for
distribution to mine owners/ operators need to be designed, possibly
supported by interviews in certain cases. A comprehensive business plan may
be prepared for initiating the project either in public or private sector. This has
become absolutely necessary to enhance coal production from the present
4.5 million per annum to 7.0 million tons per annum. In this context, WAPDA
may provide electric connection in Lakhran coal fields, as without electricity it
will not be possible to mechanize the coal mines or improve safety of miners.
Table-11: CHARACTERISTICS OF MAJOR COAL FIELDS
Sr. No.
Name Moisture%
Volaiable Matter %
Fixed Car. %
Ash % Sulph %
Calorific Value
Btu/Lb. 1. Baluchistan
SOR-RANGE DEGARI
15.9 to
18.7
33.5 to
39.8
36.0 to
42.0
3.0 to
13.0
0.5
to
5.6
9000 to
11000
2. KHOST- SHARIGH HARNAI
4.0
to
11.4
34.8
to
45.3
25.5
to
43.8
9.3
to
34.8
4.0
to
7.1
8500
to
12400
3. MACH 7.1
to
12.1
34.5
to
39.4
32.4
to
41.5
9.6
to
20.3
3.2
to
7.4
9200
to
10300
PUNJAB:
4. MAKERWAL 4.2
to
6.0
37.1
to
45.9
36.0
to
46.9
7.0
to
21.0
4.0
to
5.6
9500
to
11850
5. SALT RANGE 3.2
to
7.6
26.3
to
33.8
29.8
to
44.8
12.3
to
37.7
3.5
to
10.7
7100
to
11100
SINDH
6. LAKHRA 28.9 27.9 30.0 18.0 5.0 4622
to
7552
7. THAR 46.77 23.42 58.91 6.24 1.16 5774
to
10898
8. SONDA-THATTA
34.73 27.9 25.2 14.7 1.38
to
2.82
6762
to
11029
2- COPPER AND COPPER BEARING GOLD AND SILVER
Copper – Gold Mineralized Region, Balochistan OVERVIEW 155. The significance of copper resources of Pakistan is widely known because of
huge investment made in the development of Saindak copper deposit. Almost all the possible mode of occurrences of copper from large porphyry to narrow veins and replacement deposits are found in various parts of Pakistan. From chagai district in Western Balochistan through Boya in North Wazirastan Agency and on to Drosh in Chitral through Dir. Though the exploration work has been done over all these deposits, the ones in Chaghi district especially Saindak, Rekodiq and western porphyry complex have been and are being evaluated in greater detail. In view of their economic significance, details related to Saindak Rekodiq and western porphyry complex are included in the below mentioned profile.
Reko Diq Area, District Chagai, Balochistan Province 156. The Reko Diq area, in District Chaghi, Balochistan province hosts remarkable
concentration of porphyry related copper and copper-gold mineralized centers, including at least 20 identified within an area of 200 square kilometers only. BHP Billiton, the largest copper mining company in the world started exploration in Reko Diq area in 1993 under an agreement with the Government of Balochistan. Three years back an Australian Company by the name of Tethyan Copper Company (TCC) was created through an alliance of BHP with Mincor Resources of Australia. TCC's goal is the creation of a world class copper-gold mine at Reko Diq. With the seed money provided by pioneer share holders, TCC continued exploration at Reko Diq with latest techniques and advanced the level of information on one of the mineralized center [ H4 ] to the level of pre-feasibility study which was conducted by
internationally renowned consulting firms. H4 Project, which will be a stepping stone to a much larger World Class Project Reko Diq, will be undertaken at an estimated cost of US $ 130 million to produce yearly 40,000 tons of cathode copper. The Government of Pakistan provided a major incentive by granting status of Export Processing Zone to Reko Diq, thereby eliminating front end costs of duties on import of machinery and application of a simple and fixed tax regime on project's production. TCC was placed on the senior stock exchange in Sydney for raising US $ 10 million to undertake H4 feasibility study. The response of international mining funds from Canada, United Kingdom and Australia was overwhelming showing complete confidence of foreign investors in Pakistan's geology and government mineral development policies.
Location, Accessibility and Climate 157. Reko Diq region is located in the western part of the province of Balochistan,
has an average elevation of around 1300 meters, and is mostly low relief, thinly populated desert. Hot summers (40-45 degree-c) and cool winters (10 to –10 degree-c) with less than 40 mm precipitation (winter rain and minor snow) allow year-round operations apart from periods of high wind and dust/sand storms, reported totaling about one week per year. A sealed high way and standard gauge rail run parallel to and about 30 Km from the southern boundary of the project area, providing access to ports in Karachi (about 1300 Km), Iran (about 1000 Km), and Dalbandin, the local regional center (4 hours drive). The Saindak mine and smelter lies about 40 Km west of Reko Diq whereas Sarchesmeh, the major copper mine and smelter and refinery complex in Iran is about 600 Km by road from Reko Diq. (Location map showing regional infrastructure is at Fig-10).
Geological Set Up, Resources and Reserves 158. Geologically, the Reko Diq project lies within a relatively under explored area
of the Chaghi Volcanic Belt of the Tethyan Magmatic Arc, which extends across northern India, through Pakistan and into Iran and eastern Europe. The magmatic arc hosts a wide range of ‘World Class’ deposit types including porphyry copper + gold/molybdenum/silver, epithermal gold/silver, carbonate
hosted lead-zinc and copper zinc deposits that range in age from Upper Cretaceous to Lower Pliocene. (Fig-11).
159. The following table gives details of the major porphyry
copper + gold / molybdenum / silver deposit found and being explored, mined, processed and refined near Reko Diq within the magmatic arc.
Table 15: Showing Regional Copper + Gold Deposits of the Tethyan Magmatic Arc
Saindak Copper – Gold Project 160. The project is based on 413 million tons ore deposit with an average value of
0.44% copper and comprises an open pit mine and a metallurgical complex
having crushing/grinding units, concentrator and smelter plant. Auxiliary
facilities consist of a 55 MW power house, bulk water supply (40,000
Regional copper+gold deposits of the Tethyan Magmatic Arc Project Location Reserves with actual or
projected production Comments
Pakistan (40km west of Reko Diq project’s defined resources)
412Mt @ 0.45% Cu, 0.5g/t Au, 1.5g/t Ag
Annual Production: • 16,000t Cu in conc. • 45,000oz Au
Siandak
• 90,000oz Ag
Has previously operated intermittently but expansion nearing completion after disruptions (expected to be re-commissioned in May, 2003). Capex US$ 319M with US$39M sourced from Chinese investment ot complete construction of mine, concentrator and smelter complex in partnership with the Pakistan Government.
Eastern Iran (600km by road from the Reko Diq project)
1,200Mt @ 0.69 Cu 0.03% Mo+Au, Ag
Annual Production: 15Mtpa ore treated: • 155,000t Cu • 3,500t Mo conc. • 16,000oz Au • 530,000oz Ag
Sar Chesmah
In operation for over 29 years. Major mining, SX/EW, smelting/refining complex.
Eastern Iran (750km from the Reko Diq project)
145Mt @ 0.8% Cu
Planned Production: 7Mtpa treated: • 45,000t Cu in conc
Commissioning planned for 2003. Capex US$255M. Concentrates to be shipped 70km to Khatoon Abad smelter near Sar Chesmah.
Meiduk
Western Iran (1800km from the Reko diq project)
384Mt @ 0.67% Cu
Planned Production:
Sungun
• 45,000t Cu in conc
Under construction. Capex $360M with $15-$20M Chinese investment for concentrate off-take.
Source: TCC Ltd – Prospectus ACN 093519692 – Australia
tons/day), 33 Km rail spur form Taftan, various workshops and a housing
colony to accommodate 1200 employees. The facilities and infrastructure at
the project has been developed to mine 4.5 million tons of ore to produce
following quantities of metals:
Blister Copper 15810 tons Gold 1.47 tons Silver 2.76 tons
161. The Saindak Project was approved by ECNEC, in December 1989, at a cost
of Rs. 6 billion. During the first 15 years of its implementation, the PC-I
document of the project portrays (out of its 19 year life) a negative cash flow
with only 6.48% rate of return on investment. During the implementation of the
project, depreciation of Pak Rs. against the dollar, interest charges and import
duties, increased the cost and reduced the projected rate of return to only
3.39%.
162. The construction contract of the project was negotiated and signed with
Metallurgical Construction Corporation of China (MCC) in September 1990,
exclusive of any professional assistance, therefore, all the project risks
(financial, commercial, technical and management) were on Saindak Metals
Limited (SML). The 3 to 6 months training imparted to SML’s employees in
China and later in Pak Steel and Heavy Mechanical Complex, proved
inadequate to operate the project independently.
163. Construction of the Project was completed in August 1995, at a cost of Rs.
13.6 billion; solely financed through GOP investment and GOP guranteed borrowing. For supplies of Chinese machinery, MCC provided a supplier credit of $ 84 million, at 9% interest rate. In view of the fact that the project had no source of income, the repayment of loan became the liability of GOP/NBP through cash resources.
164. During the trial production in 1995-96, it produced 10,000 tons of Copper concentrates and exported for US$ 4.422 million. Nevertheless, the Project could not be made operational, due to lack of Rs 1.5 billion as working capital, expatriate expert support to run the plant and slump in metal prices. Earlier efforts to raise working capital from banking source without GOP guarantees did not prove successful.
STATUS AND PROSPECTS OF VARIOUS ON GOING PROJECTS The H4 Starter Project 165. The project on the Reko Diq EL known as the ‘H4 Starter Project’ is a zone of
supergene enriched copper mineralization, mostly chalcocite, developed above a primary porphyry system in the center of the Reko Diq intrusive complex. The area is flat with reasonable out crop and good access. TCC geo-scientific and drilling operations have established the total resource 108.3 million tons containing 0.7% copper at cut off grade of copper is 0.3%. According to the studies so far carried out, open pit mining with heap leach and solvent extraction/electro winning method may prove to be cost effective for an operation to produce copper cathode for direct export. It has been estimated that the development cost of H4 Starter Project would cost US$ 130 million, which TCC would invest as debt-equity financing. Based on 14 years as life of mine, producing approximately 40 thousand tons of copper per annum at a copper price of US $ 0.90 per pound, the Internal Rate of Return (IRR) comes to 26 percent. The entire export oriented production would fetch US$ 75 million per annum over the life of the mine.
Western Porphyry Complex 166. The western porphyry complex comprising four porphyry related mineralized
centers occupy a 5 Km long arcuate zone outlined by BHP Billiton’s 30 drill
holes and systematic surface geochemical sampling and mapping. On the
basis of this data it has been concluded that the total resource falling in
inferred category are 10.287 million pounds of copper and 9.1 million ounces
of gold. It has been predicated that over the next 5-10 years, this project
would produce 250 thousands tons per annum copper and 9 million ounces of
gold at an estimated capital investment of US$ one billion. On completion, it
would fetch US$ 500 million per annum in export earnings for a much larger
period of time.
OTHERS PORPHYRY COPPER –GOLD PROSPECTS 167. Others areas that have shown promise of containing copper and gold occur in
and around the areas are Kohi-Dalil, Bukit Pashin, Pharra Koh, Samkoh and
North Kohi-Dalil. Preliminary surface indications and ground magnetics have
defined certain target areas that would be clarified and upgraded through
systematic geological mapping, geo-chemical sampling and high resolution
geo-physical surveys.
Saindak Copper – Gold Project 168. In pursuance of the decision of the Cabinet, a Saindak Leasing Committee
(SLC) was constituted, to initiate the leasing process, in April, 2000. The SLC
recommended that Saindak Copper Gold Project lease might be awarded to
MCC China on following terms and conditions for a period of 10 years; and
the Cabinet approved the recommendations.
169. Initial 9 months for commissioning project, wherein MCC would invest an
estimated amount of US$ 0.5 million annually as rental.
170. MCC would pay US$ 0.5 million annually as rental.
171. MCC would share 50% of the cash surplus, if generated for the sale of metals
to be recovered from the project.
172. MCC would pay royalty after negotiation with Government of Balochistan, with
the support; of Government of Pakistan.
173. The MCC share in the surplus cash flow generated from the project shall be in the first place directed to recover the MCC working capital and thereafter remaining cash surplus shall be reinvested in the project as equity.
174. Under the contract, MCC would operate, manage and sell the product through its subsidiary company. MCC – Resource Development Limited (MRDL) registered in Pakistan. MRDL would pay an annual lease rent of US$ 0.5 million. Additionally it would pay 50 percent from cash surplus generated through the sale of the products. Future value added facilities i.e. refining of blister copper, sulphur/sulphuric acid production from pyrite concentrate bye-products shall greatly enhance profitability of Saindak project. Saindak project has earned revenue of US$ 45 million during the year 2003.
CONCLUSIONS AND RECOMMENDATIONS:
Reko Diq Copper Project 175. Detailed geo-scientific and technological studies carried out through advanced
exploration techniques, quick methods of drilling and in situ extraction of copper by employing bio-leaching, solvent extraction and electro-winning of cathode copper have established, H4 Starter Project, a viable and implementable project. According to initial estimates H4 Starter Project would fetch US$ 75 million per annum and Western Porphyry Complex, when developed, would bring $ 500 million in foreign exchange per annum during the lives of these mines. The level of confidence achieved has helped H4 Starter Project in its enlistment on the Senior Stock Exchange in Sydney- Australia.
176. This is first foreign investment project for Mineral Sector in Pakistan that have invested and intend to invest risk capital for developing projects in the copper-gold mineralization region from grass root to fully developed mines level. In an industry so vast and so complex, loaded with a number of inherent and indigenous risk factors, it is a requirement that the Federal & Provincial Governments and Parties involved to develop mutual respect and trust amongst them. This has become all the more important for Pakistan, as it has neither mining tradition and mining experience nor capital resource for the development of its mineral resources. Therefore, It has to engage expatriate mining concerns as potential partners for the development of its metallic mineral resources. In order to educate and train local geo-scientists, mining
engineers, mineral processors, mineral economists, decision makers and other targeted audience, it is suggested that TCC management may hold one day seminar highlighting latest techniques deployed in exploration, mining and processing of minerals, with special emphasis on copper-gold projects in Pakistan.
Saindak Copper – Gold Project 177. North ore body adjacent to the presently developed south ore body should be
investigated with filled-in drilling for the estimation of proven reserves and its subsequent development and infrastructure.
178. The capacity of the concentration plant may be increased from 12, 500 tons
per day to 15,000 tons per day by mining additional ores from south ore-body for the efficient utilization of concentrator and smelter plants.
179. Low grades ores programmed to be stockpiled may be subjected to “Heap
Leaching” technology for the extraction of additional quantities of copper gold and silver that will have positive impact on revenue.
180. Sulphur dioxide, on roasting pyrite, may be used for the production of
sulphuric acid. The acid may be used for industrial purposes and partially for leaching of oxidized Saindak Copper Ore (overburden). The sinter (roasted pyrite) may be blended with magnetite to form pellets, which may be used for production of sponge iron by direct reduction process.
181. Molybdenum recovery plant may be installed at Saindak mill and the moly
concentrate may be exported. 182. The recovery of gold and silver from Saindak ore is very low. Efforts should be
made to increase the recovery.
Profile of the Top 15 Mineral Projects Iron Ores
3- IRON ORES
OVERVIEW 183. The known iron ore resources of Pakistan are essentially of three major types:
i) sedimentary; (ii) volcanic; and (iii) hydrothermal (contact metasomatic).
The sedimentary deposits typically at Kalabagh and D.G. Khan are low grade,
containing 30-34% Iron and 21-24% silica whereas iron ores of Dilband,
Balochistan contain iron from 35-40% and silica about 20%. Further it has
been reported by GSP that it also contains 68 ppm vanadium. The volcanic
deposits are in Chilghazi, Chigendik and Pachinkoh of Nokkundi area and
hydrothermal/ metsomatic deposits are in Daman Nissar (Chitral) containing
40-50% iron and 12-20% silica content. The iron ore resources at Kalabagh
and Nokkundi are 300 million tons and 50 million tons respectively while at
Dilband, the resource are estimated to be 200 million tons. Other minor iron
ore deposits are at Langrial & Pezu (NWFP), Chilghazi (Balochistan) and
Rakni Munn (Punjab). These deposits are not considered viable projects.
Location Map showing Iron ore deposits is at Fig-12.
184. The location, accessibility, reserves quality and accessibility of known iron ore
deposits is given in Table16.
Table 16: Location, Reserves, Quality And Accessibility Of Iron Ore Deposits
1 LOCATION RESERVES QUALITY ACESSIBILITY i. Kalabagh Chichali
(Punjab) 350.0 million tones 32.0 Fe (Chemosite-
Siderite) Mianwali Distt.
ii. Nokkundi
- Pachinkoh (Balochistan). 45.0 million tones 49% Fe (Magnetite) 676 Km West of Quetta
- Chigandik (-do-) 05.0 million tones 45% Fe (Heamatite) 40 Km West of Nokkundi
iii. Dilband (Balochistan) 200.00 million tones 35% Fe (Sedimentary hematite)
640 Km north of Karachi.
iv. Langrial Abbotabad (NWFP) Distt:Hazara
27.9 million tones 34.0 to 47.5% Fe (Heametite Chemosite Limonite)
32 Km South of Abbotabad
v. Chilghazi Chagai (Balochistan)
2.45 million tones 32-55 Fe (Magnetite) 51 Km North-west of Dalbindin.
vi. - Sargodha (Punjab) - Chiniot (Punjab)
- 17.0 million tones (on the basis of drill holes)
64% Fe (Heamatite) 59% Fe (Heamatite)
Near Chiniot on Chiniot-Jhang Road
vii. Pezu Distt:Bannu (NWFP)
12.58 million tones 31.5% Fe (Sedimentary Limonite – Siderite)
83 Km from Bannu 60 Km from D.I.Khan
Raki Munn, D.G. Khan (Punjab) 14.5 million tones 37% Fe Sedimentary (Limonite – Siderite)
07 Km of Rakhi Munn 53 Km from D.G.Khan
viii. Swat (NWFP) 31% Fe (Amphibolite) 16 Miles or 25 Km West of Saidu Sharif and 272 Km North of Rawalpindi.
ix. Chitral Dammen Nisar (NWFP)
6.5 million tones 60-65% Fe (Magnetite) Poor accessibility
Source: - Report on Availability of Local iron ores prepared for Ministry of Industries & Production.
STATUS AND SCOPE Kalabagh iron ore deposits, Mianwali, Punjab 185. Several laboratory and semi-industrial scale trials for the production of iron
and steel using Kalabagh iron ores have been conducted at home and abroad
from 1963 onwards. (Niaz – Tanweer tests in Pakistan, IRSID in France,
ARBED in Belgium, CNRM in Luxembourg and Salzgitter in Germany). Based
on an industrial scale test on I5,000 tons of Chichali iron ores, Salzgitter of
then West Germany (1966) concluded and recommended, establishment of a
Steel mill near Kalabagh. The mill was to operate on local iron ores and fluxes
but coke had to be imported. This proposal did not materialize due to
economic factors.
186. In 1968-69 Gipromez of USSR considered the previous studies, performed
tests and suggested two alternatives:
• Using 100% Chichali iron ores.
• Using Chichali iron ores together with high-grade iron ore which would
ultimately be imported.
187. The Soviets concluded that Steel works based on Chichali iron ores would
result in very low efficiency and expressed doubts concerning the viability of
the Kalabagh Steel Mill project as suggested by Salzgitter of Germany.
188. Accordingly, Gipromez of USSR proposed to the Govt. of Pakistan the
installation of a coastal plant based on imported iron ore and coking coal. This
is to be mentioned here that the original idea of an integrated steel mill in
Karachi operating on imported iron ore and coking coal was expressed by M/s
Industrial Management Ltd. (Pakistan) in 1966.
189. Recently Punjab Mineral Development Corporation (Punjmin) plan to develop
iron ore deposits at Kalabagh covering upgradation of Chichali iron ores to
feed Pak-Steel & preparation of pellets for Electric Arc Furnaces. The
proposal of Punjmin was based on induction of foreign investors experienced
in this technology. However it is to be mentioned here that Chichali iron ores
rich in siderite are amenable to beneficiation justifying undertaking detailed
geo- scientific studies for proving 80-100 million tons of uniform grade of ore.
Another option is to blend it with 25-50% of high grade ore and sintered for the
production of iron in a blast furnace in order to reduce coke consumption and
improve the efficiency of the process.
Nokkundi Iron Ore Deposits, Chaghi, Balochistan 190. The preliminary surveys and investigations for Nokkundi iron ores project was
started in 1972 with the technical assistance of People Republic of China. As
a result of geological studies over 4 sq. km area, geophysical studies surveys
(geomagnetic and gravity) over an area of 15 sq. km, diamond core drilling of
80 drill holes, ore beneficiation and metallurgical tests, a total iron ore
reserves of metallurgical grade were proved at the following two promising
localities:
191. Pachinkoh - 45 million tons with average iron content 49%, predominantly magnetite.
192. Chigendik - 5.0 million tons with average iron content 45% predominantly
magnetite.
193. In 1979, a representative sample obtained from Chigendik and Pachinkoh was
subjected to chemical analysis, palletizing (balling, preheating and firing tests
for determination of physical properties), reduction (static bed reduction test,
linder reduction test, reduction under load test), and examinations of physical
and chemical properties were performed. The properties of pellets so obtained
are summarized below:
PACHINKOH CHIGENDIK
Phosphorus Very low Very low
Sulphur Very low Very low
Physical Properties Good Excellent
Reducibility Good Excellent
Reduction Fine Fine
Fine Generation Little Little
Clustering Little Little
194. At the same time, a sample was sent to ARMCO,USA, iron ore consultants of Pakistan, for metallurgical tests to examine the suitability of Nokkundi Iron ores for Pak-Steel’s blast furnace. It was observed that Nokkundi pellets show good physical properties and can be used as blast furnace feed.
195. During 1987, Pakistan Steel had arranged the pre-investment feasibility study
of the project by M/s USX Engineers and Consultants Inc; USA under the aegis of ADB. The Consultants submitted their report to the Govt. in April 1987 with the suggestion that the economic viability of the project is affected due to the fact that 80% of the deposits are underground and moreover the ore has to be transported over a distance of 1400 km from Quetta to Karachi. Hence it was recommended that i) prove additional iron ore reserves at shallow depths involving less extraction cost; ii) provision of basic infrastructure and utilities by Govt. of Pakistan; and iii) possibility of utilization of 0.1 million ton of magnetic concentrates from Saindak project. Nokkundi iron ore project was transferred from PIDC to Pak-Steel on 2nd May, 1985. Now it is upto Pak-Steel to develop these deposits to make use of this indigenous ore in the best national interest.
Dilband Iron Ore Deposits, Mastung, Balochistan 196. Dilband is situated about 640 km north of Karachi approachable through RCD
Highway. These iron ore deposits are sedimentary type, oolitic in texture,
predominantly consisting of haematite but siderite, limonite and chamosite are
also present. The ore body constitute a number of zones, comprising various
geological formations. Each formation is distinct to its physical and chemical
nature and contains varied amount of iron mineral. The gangue minerals in
the ore are calcite, quartz, chlorite, clay mineral, shales, siltstone etc.
Accroding to GSP publications, the chemical composition % age wise is as
follows: Fe2O3 – 50.72, SiO2 – 19.45, Al2O3 6.58, Mgo 1.88, Cao 7.0,
Na2O+K2O 0.17, P2O5, 0.44, S – 1.00 and V, 0.0681. Although an appreciable
amount of vanadium has been indicated but its nature or the name of its
mineral has not been mentioned in any GSP report. Moreover, it is not clear
whether the mineral is free or in association with gangue minerals.
197. Recently M/s Bolan Mining Enterprises (BME), the owner of mining lease
have signed a contract with DMT-Montan Consulting Gmbh Germany for
carrying out upgradation/beneficiation study of Dilband iron ores to upgrade
iron content from 35% to 60% to feed Pak Steel with a view to replacing
partial or full imports costing on an average Rs. 3.2 billion per annum on the
import of 1.7 million tons of iron ores. BME has entered into an agreement
with Pak-Steel to provide 10,000 tons of fine ore (0.6 mm mesh size) per
month with total iron content of 40% on dry basis.
198. Preliminary investigations show that Dilband iron ore deposit is a world class
deposit having large tonnage, connected with available infrastructure but its
techno-economic viability hinges on the results of beneficiation studies being
carried out by German consultants. The Govt. of Balochistan and BME may
therefore ensure completion of upgradation study within the agreed time-
rame.
CONCLUSIONS AND RECOMMENDATIONS Kalabagh Iron Ore Deposits, Mianwali, Punjab 199. Due to marked variation in the chemical and mineralogical behaviour of
Chichali Kalabagh iron ore, it is essential that a Block of 80-100 million tons of iron ores of uniform quality, amenable to concentration may be delineated through geo-scientific and test mining studies. The beneficiated ore so obtained may be blended with appropriate quantity of high grade ores and after sintering may be used as feed for blast furnace.
Nokkundi iron Ore, Chaghi, Baluchistan
200. Beneficiated Iron Ores (+64% iron) have been found technically suitable as an
input for Pak Steel. It may be used for production of sponge iron by direct
reduction process. However, economic viability could improve by proving
additional 20 million tons suitable for opencast mining. It is recommended that
consultants experienced in steel technology including establishment of Mini
Steel Plants may be appointed to carry out detailed Feasibility Study.
Dilband iron ore, Mastung, Balochistan
201. Recent geo-scientific studies have established about 200 Mt of iron ore,
ranging in iron content from 40% to 50%. The deposits have favourable
mineralogical composition and are located near to the existing infrastructure
making it favourable option for use in Pak-Steel. As the viability of this World
Class deposit hinges on the results of beneficiation study awarded to German
consultant, it is suggested that Govt. of Balochistan and BME may ensure that
the study is completed with in the agreed time frame.
Profile of the Top 15 Mineral Projects Zinc-Lead Ore
4- ZINC-LEAD ORES
Emphasis on Duddar, Zinc-Lead Deposits, Lasbela, Balochistan OVERVIEW 202. The Jurassic rocks of the Lasbela - Khuzdar Belt have the potential to host
several ‘WORLD CLASS’ zinc-Lead ore deposits. The mineralization of these
deposits has been identified of the type known as SEDEX (Sedimentary-
Exhalative) or a sediment hosted – a class of deposit which is a major source
of zinc and lead throughout the world. Among the four better known deposits
of Surmai, Gunga, Dhungei, Duddar is the most advanced. Location map is at
Fig-13. This prospect has been intermittently explored since early 1960s. The
deposit was discovered by a joint UNDP program and Geological Survey of
Pakistan team in 1988, when a discovery hole was drilled and intersected
massive sulphide mineralization with a corrected thickness of 6.5 m grading
16.4% zinc and 3.9% lead. Later on, under the second phase of operation,
UNDP and Pakistan Mineral Development Corporation (PMDC) was involved.
Pasminco of Australia started working with PMDC and Balochistan
Development Authority (BDA) in 1995. UNDP/PMDC prepared five volume
reports (1991-94), while PASMINCO prepared eight volume pre-feasibility
report (1995-98). PASMINCO wounded up their operations sometimes in
1999.
STATUS AND SCOPE 203. Detailed geo-scientific studies through mapping and drilling (46000 meters),
an inferred plus indicated geological reserves of 14.31 Mt@ 8.6% Zn and 3.2% Pb have been calculated for the Duddar Deposit using +7% Zn+Pb cut-off. The resource of Duddar Deposit have been estimated about 50Mt. Mineralization extends over 1100m along strike, from 10-200 m in vertical
extent and 200m in width. Pasminco carried out detailed geo-technical,
mining, milling and marketing studies and concluded the project being uneconomic given the current resource, estimates of capital requirements, operating costs and the current economic climate including metal prices and smelter returns.
204. It was recommended that discovery of an adjacent ore-bodies within say 10
Km radius, preferably with high grade ore, could possibly change the economics of Duddar Project. Executive summary of the Duddar- Pre-feasibility study is at Annexure-6. The project, lately, has been taken over by a Chinese firm.
CONCLUSIONS AND RECOMMENDATIONS 205. A number of sulphide deposits are found in the Jurassic sediments of the
Lasbela-Khuzdar belt of Balochistan. Among the four better known deposits of Surmai, Gunga, Dhungei, Duddar is the most advanced. Detailed geo-scientific studies through mapping and drilling (46000 meters), the total resources and reserves established are 50 million tons and 14 million tons respectively ranging in grade (zinc plus lead) between 11% to 12% at Duddar. Lately this property has been taken over by a Chinese concern. As Lasbela-Khuzdar belt hosts lead-zinc deposits that extends hundreds of kilometer north of Karachi (Lasbela) and upto south of Quetta (Kalat), it deserves a major geochemical survey to compare with the results of air-borne electro-magnetic survey carried out by GSP. Further efforts need to be made to discover high grade ore, adjacent to Duddar area to enhance the viability of Duddar project.
Profile of the Top 15 Mineral Projects Gold – Placer & Mineralized
5- GOLD- PLACER AND MINERALIZED
Emphasis on Northern Pakistan OVERVIEW 206. It is said that search for gold is like hunting a needle in hay stock. However
the gold mining companies believe that gold constitute hedges against
political uncertainty and currency inflation. This is the reason that search for
gold has flourished in recent years. The greatest gold field in the World’s
history has been the Witwatersrand in South Africa that on an average mine
and process 1,50,000 tons of ore to produce one ton of gold. It is reported that
some newer mines in US are producing gold from ores with a content of one
gramme per ton, so that one million tons of ore are processed to yield one ton
of gold. In Ireland, at one gold mine, attempts have been made to recover
gold from the tailings by a non-toxic leaching process. These factors hold
good for Pakistan also.
STATUS AND SCOPE 207. It has been established that there are indications that Pakistan has a
significant potential of gold, particularly in the folded belt regions (Northern Mountain belt, Island Arc system), its association with volcanogenic sequences, porphyry copper and in shear zones. In the Northern Areas, spread of gold anomalies is concentrated along the Main Karakorum Thrust rather than within each geologic unit. The distribution of gold anomalies obtained through geochemical sampling vary between 2ppm to 330 ppm. High concentration area has been designated as “ARC OF HOPE” requiring detailed statistical analysis of work done by Australian concerns who undertook well planned geochemical surveys with well conceived additional work during (1992-99). This Project initiated by Australian firm in collaboration with government mineral development departments has been wounded up after nine years of rigorous geochemical exploration work spreading over the
Profile of the Top 15 Mineral Projects Gold – Placer & Mineralized
entire area of Northern Areas. It is learnt that over Rs. 67 million have been spent resulting in generating an excellent basic raw data for gold and associated base metals that provides a strong base to generate new projects for the local populace. A technical note on Gold and Base Metal Exploration in Northern Pakistan and a paper on Over Viewing the Arc of Hope is at Annexure-7.
208. Further the reports indicate several spots where visible gold is available in the active channels of streams along with plenty of magnetite and rare and heavy minerals like zircon. Locally fabricated machines can be used to win gold and heavy minerals. Agha Khan Rural Support Programme (AKRSP), a strong and organized social organization in the area, did deploy these machines in certain areas but could not make a headway due to lack of pilot plant studies and an advance identification of rich areas for such minerals. The project, if established, will open hundreds of jobs for locals to help alleviate poverty in the area. Further alluvial gold washing from the sands of Indus river and its tributaries need to be furthered. Gold is also mined from the massive porphyry copper deposits in Balochistan. About thirteen anomalous gold bearing areas have been earmarked In distt: Chitral NWFP. SDA under joint venture has signed a MOU for 7500 sq. km of southern part of Chitral for gold and base metals with M/s Toronto International Trade Corporation, Canada. Further nine gold bearing anomalies have been demarcated in district Dir, Swat and Bunair of Malakand Division by SDA. Promotional material, in respect of gold needs to be prepared for attracting investment.
CONCLUSTIONS AND RECOMMENDATIONS 209. Locally fabricated machines used by AKRSP may be deployed at well
identified spots to win gold from the heavy sands of Indus river and its tributaries.
210. Modern statistical analysis of the available data is pre-requisite for the
identification of promising areas hosting rocks for gold. This is important, as gold mineralization appears to be in several types of host rocks with different genetic environment.
Profile of the Top 15 Mineral Projects Chromite
6 - CHROMITE OVERVIEW 211. Chromite occurrence is wide spread yet its potential is far from being fully
assessed judging from the favourable geological environment. For this
reason, chromite deposits of Baluchistan and NWFP must be considered from
a regional standpoint that could enable Pakistan to become a major exporter
of chromite and/or ferrochrome. Chromite is the only foreign exchange
earning metallic mineral particularly of metallurgical grade: chromium oxide
(Cr2O3+48%, and chrome iron ratio 3: 1).
STATUS AND SCOPE Balochistgan Chromite Deposits
212. In Pakistan, Muslim Bagh chromite deposits have been and still are the major
commercial source of chromite since 1903. However, it occurs at a few other
localities in Balochistan: Zhob Valley (Qila Saifullah and Zhob district); Bunap,
Rayo valley of Kharan district and Wad – Sonaro areas of Khuzdar.
Geologically, chromite deposits occurs in layers, lenses and irregular masses
is often the result of magmatic segregation and is one of the earliest minerals
to crystallize. Depending upon the geologic disposition of ore deposits, the
mining is mainly done on small scale with a view to obtaining high grade
lumpy ore (48% Cr2O3 and Cr: Fe ratio 2.7:1). However, low grade ores are
also being exploited and are blended with high grade ores to obtain
exportable grades.
NWFP Chromite Deposits 213. Government of NWFP through Directorate of Minerals and Sarhad
Development Authority has been carrying out exploration in Malakand (Dargai
area) and Kohistan district (Chilas, Patan and Jijal). The success in
Profile of the Top 15 Mineral Projects Chromite
prospecting in Dargai has been spectacular: estimated reserves 0.7 Mt of
which 0.3 Mt are proven, at a grade of 30-40% Cr2O3. A pilot plant has been
set up, and using run of mine ore grading 28% has obtained marketable
concentrates of 48% Cr2O3 by simple gravity processing in spirals and
shaking tables.
214. In Heroshah, open pit reserves of around 0.1 Mt have been proved within
the top 45 meters depth. Similarly in Jijal-Pattan and Chilas areas
(Kohistan) Shunghail prospect appear to contain 0.2 Mt reserves, whilst
grade is reported to range between 40% and 50% Cr2O3 with a maximum
Cr/Fe ratio 2.8:1. The available data for Waziristan district is fragmentary,
but small pods of massive chromite have been located.
Mining Practices and Production 215. In Pakistan, mining of chromite is carried out over scattered locations and
metallurgical grade chromite is almost wholly exported. Low grade ores from upcountry and Wad area (Khuzdar) are blended with medium to high grades from Muslimbagh to obtain exportable grades. The production of chromite during 1999-2000 & 2000-2001 was 32,169 tons and 13, 454 tons are respectively.
CONCLUSIONS AND RECOMMENDATIONS 216. Bright future exists in setting up ferro-chrome industry in Pakistan, utilization
of refractory grade chromite with a view to substituting the presently available basic refractories and to set up chrome chemical industries.
217. High Grade Ores (48% Cr2 O3 and above) attract high market value in
export; therefore, necessary systematic technical audits of chromite ore deposits should be initiated.
218. Install Mobile Concentration Plants to be used for buying the low grades
ores from the small scale miners at an advantageous price for producing marketable concentrates.
Profile of the Top 15 Mineral Projects Chromite
219. Possibility of setting up Ferro-Chrome plant needs to be investigated, by
following the example of other countries particularly of Turkey. 220. A copy of outline of a BRGM of France proposal for technical
collaboration on development of chromite ores of NWFP is at Annexue-8 for consideration of investors.
Profile of the Top 15 Mineral Projects Gypsum/Anhydrite
7- GYPSUM / ANHYDRITE
Soil Conditioner, Corrector of low Quality Tubewells Water and use for Building Industry OVERVIEW 221. The study of gypsum resources in Pakistan has demonstrated the existence
of at least three interesting areas in terms of their size, resource, quality,
reserves and exploitability. These areas are: Salt Range of the Punjab,
Kohat Banu Region of NWFP and Suleman Range of D.G.Khan, Punjab.
The gypsum/anhydrite resources are enormous (5-6 billion tons), lend
themselves to bulk open cast mining methods and available near the
existing infrastructure and utilities. Presently its production, on an average,
is 0.4 million tons per annum consumed primarily in agriculture, cement
industries and as mother mould in sanitary, ceramics applications.
222. Many national and international studies have confirmed that more than
seven million acres area falling under canal command is sodic and can be
corrected with the use of gypsum. Similarly a number of tube wells are
pumping low quality water and are responsible for making productive land
unproductive. These marginal quality tube wells water can be corrected by
treating it with gypsum. The study carried out by BRGM of France (1994)
suggest that potential market for gypsum plaster exist in Pakistan for
providing construction material for building homes for millions of homeless
people. Further, a special type of Alpha Plaster manufactured from high
quality gypsum principally used in dentistry and as a medical plaster with
bandages for broken limbs holds encouraging future.
Profile of the Top 15 Mineral Projects Gypsum/Anhydrite
STATUS AND SCOPE Gypsum Resources 223. Gypsum (CaSO4. 2H2O) is a metastable substance derived from the
hydration of anhydrite which is a primary mineral. The extent to which
anhydrite has hydrated in it near surface expression depends upon
numerous factors. Out crop of gypsum at the surface cannot be safely
predicted to continue homogeneously into hill or mountain in the same way
as limestone or sand stone. Only core drilling followed up by careful
analysis provides the certitude of deposit homogeneity.
224. According to the latest study (1994) carried out by BRGM of France,
principle gypsum/anlydrite deposits occur in three areas described below:
Location Map is at Fig 15.
Punjab 225. Rakhi-Munh Deposits – Total gypsum/anhydrite deposits have been
estimated of the order of 27 Mt.
226. Safed Koh – Rodo area (Central Suleiman Range) This is the richest part of
the Zindapir anticline and has gypsum reserves estimated at 15 Mt
containing more than 90% hydrated calcium sulphate.
227. Daudkhel – Mianwali area – The total reserves estimated are about 53 Mt.
228. Khewra – About 25 Mt reserves of gypsum/anlydrite are available. However,
because of the quality factor, particularly colour, the gypsum deposits of
Khewra, are not suitable for construction industry.
North West Frontier Province 229. Dera Ismail Khan – Saiduwali Deposit Resources are estimated to be 20Mt
while deposits near Drazinda and Mughalkot are about 70 Mt.
Profile of the Top 15 Mineral Projects Gypsum/Anhydrite
230. Kohat – Geological reports indicate potential reserves to be 4,442 Mt above
surface and 472 Mt down to a dip depth of 30 meters over an area of 1,153
sq. km. The major deposits are of high grade and fit for production of high
quality gypsum products.
Balochistan 231. Spintangi – Near Spintangi, gypsum is as much as 98%, and reserves,
down to a depth of 15 meters, have been estimated at 5 Mt over a distance of 10 Km.
232. Mawand – Khattan. Reportedly the deposits of Khattan and Merwand are
about 20 Mt. 233. Barkhan – Chamalang. Thirteen gypsum beds aggregating a thickness of
15 m have been estimated to contain 7 Mt of good quality gypsum.
USES OF GYPSUM Gypsum As Soil Conditioner 234. It is an established practice all over the world that saline-sodic soils of
various types can be economically amended with the use of gypsum. Various studies and surveys, carried out by national and international experts have confirmed that more than seven million acres area falling under canal command is sodic and can be corrected with the use of gypsum. Current production of gypsum ranges between 0.4 to 0.5 million tons per annum and its mining is being done by the private sector. According to one estimate the total gypsum requirement for the reclamation/amelioration of various categories of sodic soils is 50 million tons per annum. This suggests that production of gypsum has to be increased manifolds requiring Herculian efforts. This is possible if a coherent, well planned action programme starting from gypsum requirements, its physical and chemical specifications, geological set up of economically viable deposits, their geographical relationship with the place(s) of utilization, mining, transportation is envisaged and implemented.
Profile of the Top 15 Mineral Projects Gypsum/Anhydrite
Gypsum as a Corrector of Low Quality Tubewells Water and for Distributaries Lining
235. Based on previous studies and surveys carried out by national and
international experts, it has been established that: -
236. It is tested practice all over the world, that marginal quality tube wells water
can be corrected by treating it with a mineral/rock called gypsum.
237. In Pakistan a number of tube wells are pumping low quality water,
responsible for making productive lands unproductive. Further it is mixed
with canal water and supplied to canal command area for irrigation making
fertile land ‘sodic’, unfit for cultivation.
238. Crop yield adversely affect the use of potentially hazardous irrigation water.
239. High sodium waters flowing through gypsum beds dissolve appreciable
amount of gypsum to neutralize the harmful effect of high sodium tube wells
water in soils and crops.
240. By using gypsum in soils to be irrigated with potentially hazardous tube
wells water, the annual farm income can be doubled by applying required
quantity and quality of gypsum to the soils.
241. Application of gypsum to soils irrigated with saline waters reduces soil
dispersion, water stagnation, concentration of silt and clay also decreases
crust strength besides lowering the suspension load in ponded waters.
242. Gypsum passed through 2 mm sieve, having a wide particle size distribution
is likely to be more efficient for the reclamation of sodic soils with
appreciable quantities of Na2Co3 in the soil solution.
Profile of the Top 15 Mineral Projects Gypsum/Anhydrite
243. In order to avoid seepage of water in canals and to improve quality of water, possibility of lining of canal and major and minor distributaries with gypsum boulders need to be investigated viz-a-viz other canal lining conventional expensive materials such as clay bricks, cement, stone masonry etc. Conversion temperature of manufacturing clay bricks is 900oC, cement 1450oC while gypsum boulder is zero. Hence in addition to large cost savings, it is, to large extent technologically viable and environmentally friendly proposition.
Gypsum As Building Material 244. Pakistan with a population of 150 million people has no gypsum plaster
industry for construction purposes. Based on its established uses all over the world, it is suggested that application of gypsum plaster sand blocks with gypsum mortar, may be considered for the construction of low cost houses, primary schools and basic health units under Poverty Alleviation Programme.
Technique 245. A technique for the manufacture of high strength building blocks has been
developed in developed country (ies) based on a combination of roughly 40% gypsum plaster and 60% sand. According to the inventors of this technique, the blocks can be manufactured exactly of the same size as one another and designed with an interlocking system. To enhance lateral strength, gypsum plaster is poured down a cylindrical orifices designed into the block’s shape. The plaster flows into the recesses at the base of the blocks creating a strong bond with the plaster in the blocks. Experiments have shown that bond is stronger than the block itself. Further these blocks can be manufactured at the place where they are to be assembled. Breakage and storage problems are thus avoided.
Raw Material 246. Pakistan is blessed with large and high quality deposits of gypsum (5 to 6
billion tons), which remains untapped for industrial uses particularly in building industry. These deposits are available in all the provinces of the country that lend themselves to economic open cast mining. Moreover,
Profile of the Top 15 Mineral Projects Gypsum/Anhydrite
large deposits are well connected with the existing infrastructure and
utilities. Current production ranges between 5-6 lakh tons per annum. Hence gypsum deposits are sufficient for hundred of years with the present rate of production and consumption.
Use of Gypsum For manufacturing of Alpha Plaster and moulding
Plaster for ceramic and medical applications
247. Alpha (∝ ) Plaster is a special type of plaster, also manufactured from gypsum, but through a process involving an autoclave to maintain high vapour pressures. Crystals of gypsum plaster are more amenable to hydration and the plaster sets to higher degree of hardness and when used as a mould will replicate extremely delicate shapes. This plaster is used principally in dentistry, in very high quality technical and decorative ceramics and as a medical plaster with bandages for broken limbs, etc. Production of alpha (∝ ) plaster is costly since it is made through a batch process, generally a few tons at a time, and secondly an autoclave is required along with a drying and grinding system that prevent rehydration of the plaster.
248. Certain ceramic processes, the manufacture of sanitary ware for example,
involves the pouring of the ceramic slip into a mould to acquire the complex shapes that we are familiar with. These moulds are commonly made of “moulding plaster” which may either be a high quality beta (β) plaster
(plaster of Paris) or the more expensive alpha (∝ ) plaster. The moulds are used extensively and manufacturers tend to prefer high quality plasters, which can be used through many cycles.
CONCLUSIONS AND RECOMMENDATIONS
Gypsum Resources 249. Pakistan has large deposits of high quality gypsum (5 to 6 billion tons)
available in all the provinces of the country that lend themselves to economic open pit mining method. Large gypsum deposits near Kohat, NWFP and Daudkhel in district Mianwali of Punjab are well connected with the existing infrastructure and utilities. Current uses of gypsum are in
Profile of the Top 15 Mineral Projects Gypsum/Anhydrite
cement industry used as retarder and in agriculture sector for the
amendment of saline-sodic soils. Gypsum As Soil Conditioner 250. It is an established practice all over the world that saline-sodic soils of
various types can be economically amended with the use of gypsum. In Pakistan, according to various studies and surveys, carried out by national and international experts, have confirmed that more than seven million acres area falling under canal command is sodic and can be corrected with the use of gypsum. Current production of gypsum ranges between 0.5 - 0.6 million tons per annum and its mining is being done by the private sector. According to an estimate the total gypsum requirement for the reclamation/ amelioration of various categories of sodic soils is 50 million tons per annum. This suggests that production of gypsum has to be increased manifolds requiring Herculian efforts. This is possible if a coherent, well planned ACTION PROGRAMME starting from gypsum requirements, its physical and chemical specifications, geological set up of economically viable deposits, their geographical relationship with the place(s) of utilization, mining, transportation is envisaged and implemented.
Gypsum As Corrector of Low Quality Tubewells Water 251. In Pakistan, a number of tube wells are pumping low quality waters,
responsible for making productive lands unproductive. Further it is mixed with canal water and supplied to canal command areas for irrigation making fertile land “Sodic”, unfit for cultivation. This situation can be corrected by treating marginal quality tubewells water containing high sodium content with gypsum.
Canal and Distributories lining with Gypsum 252. In order to avoid seepage of water in canals and improve quality of tube-
wells water, possibility of lining of canals and major and minor distributories with gypsum / anhydrite boulders need to be investigated viz-a-viz other canal lining conventional expensive materials such as clay bricks, cement, stone masonry, etc.
Profile of the Top 15 Mineral Projects Gypsum/Anhydrite
Use of Gypsum for Building Industry 253. Pakistan with a population of 150 million people has no gypsum plaster
industry for construction purposes. However, all over the world, gypsum as gypsum plaster, plaster board, plaster penals and high strength gypsum plaster sand blocks is used. Based on abundantly available, accessible and cheaply exploitable gypsum deposits, it is prudent that application of gypsum plaster sand blocks with gypsum plaster may be considered and initiated for the construction of low cost houses, primary schools and basic health units under various socio-economic programmes. It is to be mentioned here that conversion temperature of making gypsum plaster is 1200C to 1500C, clay bricks 9000C and cement 14500C. It is energy saver. Further high strength gypsum plaster sand blocks are fire resistant, good insulator, cost effective and possesses excellent thermal, acoustical and aesthetic properties. GOP/EAD/UNDP may approach Embassy of France or EU based in Islamabad with a view to arranging services of BRGM of France under grant- in-aid program.
Alpha Plaster from Gypsum 254. Alpha plaster, a special type of plaster, manufactured from high quality
gypsum is principally used in dentistry, high quality technical and decorative ceramics and as a medical plaster with bandages for broken limbs. Presently, it is imported. Its manufacturing in Pakistan needs to be initiated.
Expected Benefits 255. Poverty alleviation through employment generation in millions, development
of backward areas where gypsum deposits are located, improvement of quality of tubewells water and reclamation of saline sodic soils and that in turn increase in crop production and prosperity of farmers. Further use of gypsum plaster sand blocks would help in the construction of cheap and low cost houses.
Profile of the Top 15 Mineral Projects Phosphates
8- PHOSPHATES OVERVIEW
256. Pakistan with a population of 150 million inhabitants is faced with a serious
challenge to increase food production. Thus agriculture is the principal
activity that Pakistan has to pursue through improving wheat and rice yields
by adequate use of fertilizers.
257. The country’s present requirements in phosphatic fertilizer (1.5 to 1.6 Mt/y)
are not satisfied by local production (0.7 to 0.75 Mt/y), which means that
Pakistan has to import phosphatic fertilizer (about 0.8 to 0.85 Mt/y). NFC
manufactures SSP (180,000 t/y) and nitrophosphate (300,000 t/y). To
lessen the constraints of importing phosphate ores and phosphatic fertilizer,
and to keep the chemical fertilizer industry supplied, the development of the
country’s phosphate resources has been priority objective for several years.
Fauji Bin Qasim Plant, Karachi, has bocome operational for the production
of DAP Fertilizer. Presently it is operating at 70-75 percent capacity
utilization. Its installed capacity is 450,000 tons per year.
STATUS
258. NWFP contains Cambrain sedimentary phosphates of marine origin, mainly
in the upper clayey dolomite of Abbottabad Formation (cherty phosphate)
and underlying cherty – silty – sandy beds of Hazara Formation. The main
beds are located near the villages Kakul-Mirpur, Kalu-di-Bandi, Lagarban –
Tarnawai, Dalola, Rehala and Serban Hill areas in Hazara Division located
to the north of Islamabad (Location Map – Fig -16).
Profile of the Top 15 Mineral Projects Phosphates
259. Since being discovered in 1969, the Hazara Phosphates have been the
object of numerous exploration programmes carried out, with the assistance
of British Mining Consultants of UK by SDA of Government of NWFP.
Phase-I from June 1976 to June 1977 and Phase-II from June 1980 to
December, 1982. As a result of these geo-scientific investigations and
additional toils carried out by SDA between these two phases upto 1996, the
following reserves and grades were established.
Reserves and Grades 260. Grades of two major ore types and their reserves are as under:-
i) Dolomitic ore (generally low to medium in P2O5 & SiO2 and high in MgO).
ii) Siliceous ore (generally medium to high in P2O5 and SiO2 and low
in MgO).
Table 17: Type of Phosphate Rocks, Reserves and Grades
Type of rock Reserves Grade (Percentage)
Dolomitic Ores 14 million tons
P2O5: 23-32%, SiO2: 3-10%, MgO: 2-8% R2O3: 1.5-4.5%
Silliceous Ores 12 million tons
P2O5: 24-35%, SiO2: 5-25%, MgO: 0.5%, R2O3: 1.5-4.5%
Table 18: Locality-wise Ore Reserves of Rock Phosphate in Hazara, NWFP
Locality Mt Lagarban - Tarnawi Southern phosphate 3.5 Largarban North & South 3 Eastern phosphorite 7.5 Batkanala 5.5 Lamba-Nakka 0.5 Mandrian 1.5 Galdnaian 3 Kakul, Kakul Galian, Kakul West, Jabbar Lambidogi etc
1.5
Source: SDA, BMCL and recent work
Profile of the Top 15 Mineral Projects Phosphates
Processing Studies 261. With a view to utilizing these ores for manufacturing SSP and Phosphoric
acid, a number of beneficiation studies for the up gradation of low grade
ores were undertaken. As a result, an integrated Kakul phosphate mining
project alongwith it’s crushing and milling plant was planned and
implemented. Further reserves in Lagarban area were also certified for the
construction of a second crushing and milling plant.
Mining and Milling Aspects 262. The integrated Kakul phosphate mining project had been in production since
1985. It is an underground mine, exploiting a phosphate lens of
approximately 1 Mt assaying 28% phosphorous pentaoxide; the extraction
rate was above 80 to 120 tons/day or 25,000 to 35,000 tons/year. The ore
was then crushed and milled to 200 mesh size without any chemical
enrichment. The milled product was used for manufacturing Single Super
Phosphate in Haripur plant which has an annual SSP production of about
90,000 tons per year. The mine at Kakul closed their operation in 1996.
CONCLUSTIONS AND RECOMMENDATIONS 263. Among 26 million tons of potential phosphate of Hazara district, low P2O5
phosphates represent substantial reserves (12 million tons) and so
constitute ideal raw material for the production of low grade phosphate
fertilizer as repeatedly suggested by BRGM of France, leader in the
production and utilization of low grade phosphate ores. BRGM of France
aimed at manufacturing of phosphatic fertilizer using a technique of
Compaction and Granulation of low P2O5 ore of Pakistan. Two main types of
products are envisaged.
264. Milled phosphate for direct application (without chemical attack), which is
particularly effective on acid soils.
Profile of the Top 15 Mineral Projects Phosphates
265. Milled under – acidulated phosphate (Partial chemical attack), which is as
effective as chemical fertilizer.
266. In addition, a complete range of composite fertilizers could be produced by
adding raw materials available close to the phosphate deposits: (limestone,
magnesite, dolomite,etc). The major advantages of this method of fertilizer
manufacture are: development of local resource, saving foreign currency,
using simple, cost effective and localized industrial methods resulting in low
cost fertilizer and in turn increase in crop yield. A copy of the BRGM of
France proposal for the development and processing of phosphate deposits
is at Annexure-9.
Profile of the Top 15 Mineral Projects Rock Salt
9- ROCK SALT
Production and Methods for Salt Iodization OVERVIEW
267. Salt, sodium chloride, is probably the most abundant mineral in our world.
Next to oceans, the greatest concentration of salt lies in huge deposits
underground. In Man’s history, salt has been, still is and continue to play a
prominent role in its uses in food and Industry, superstitions, religion,
politics, wars etc. The Roman forces who guarded a salt road around
Mediterranian used to receive a part of their pay in salt. This was known as
their Salarium. From it came our modern word Salary.
268. In Pakistan salt deposits occur in the Salt Rang (160 kms in length, east and
west trending mountainous arc between Rivers Jhelum and Indus). It is
claimed that salt in the Salt Range area was known as far back as the time
of Alexander the Great. (around 300 to 350BC). Exploration continues
throughout the Moghal dynasty and the control eventually passed to the
Sikh rulers. In 1849, the mines at various locations of the Salt Range were
taken over by the British, who introduced more systematic mining methods,
which form the basis of present workings. In the Public Sector, the rock salt
mines are operated by Pakistan Mineral Development Corporation (Fig-17),
Punjab Mineral Development Corporation and Sarhad Development
Authority. A Flow Sheet diagram showing the procedure followed for the
production of iodated salt is at Fig-18. There are a number of private
operators as well.
269. Salt is a basic commodity and is used in such a variety of ways that its
enumeration may run into thousands, However, the scope of the topic is
restricted to the production of quality iodated salt from rock salt/ waste
materials of the salt mines i.e. khallar, soor and brine. In Pakistan, rock salt
is mainly produced from the SALT RANGE both by the public and
Profile of the Top 15 Mineral Projects Solar Salt
private sectors in sufficient quantities to meet the domestic requirements for
human consumption, animal needs and industrial purposes and to export
the surplus. Rock salt so obtained contains impurities such as shale,
gypsum, chlorides and sulphates of magnesium and potassium etc. It is
crushed/grounded by hundred of chakkies wherein control of quality is
rather difficult.
STATUS Geological Set up 270. Geologically, the stratigraphic sequence of the Salt Range with one local
exception is sedimentary ranging in age from late Pre-Cambrian to Recent.
Deposits of rock salt in the Salt Range are the result of normal geological
process. Many theories have been put forward to explain the formation of
these extensive deposits, of which “Bar Theory” is perhaps the most
satisfactory in large number of cases.
Reserves 271. All along it has been advocated that the Salt Range contains inexhaustible
rock salt deposits. However a few sporadic attempts have been made to
assess and evaluate their potential. According to Pakistan Mineral
Development Corporation, the rock salt reserves within the area of their
mining operation are around 600 million tons.
Quality of Salt 272. The quality of rock salt is good, although there are variations due to zones
within the beds containing greater or lesser amount of impurities. Thus the
rock salt as mined contains harmful impurities i.e gypsum, clays, shales,
chlorides and sulphates of magnesium and potassium. In the Public Sector,
impure salt with the local name of (Khallar) and (Soor) is dumped in the
mines while the Private Sector sells these to their customers in four to five
grades, depending on the size and impurities. The latter in turn grind the
Profile of the Top 15 Mineral Projects Solar Salt
impure / pure salt, pack and sell it to the public. The quality of sea salt is also not up to mark, as it contains bacteria and dust.
Mining Practices
273. Rock salt is produced at Khewra, Warcha, Kalabagh, Bhadurkhel, Jatta and
Kirk Salt Mines by Pakistan Mineral Development Corporation. Punjab
Mineral Development Corporation operates Chakwal and Khushab salt
mines whereas there are about fifteen private mine lease holders who
operate in Punjab and NWFP. In major salt mines, salt is extracted by
Chamber and Pillar method. The entries to the salt beds are made through
tunnels. The salt chambers are started by undercutting with a longwall chain
cutter that operates to the depth of 1.5 meters. When undercutting is
complete, the face is drilled and blasted, using locally produced black
powder and safety fuse. The pillars are left to hold up the roof of overlying
rock formations. The salt so extracted is hauled out of the mine and supplied
to the consumers.
SCOPE 274. Salt is such a basic commodity and is used in such a variety of ways, that it
is impossible to enumerate most of these here. However examination of
even a few will suggest the tremendous scope of its application in chemical
industry; the most important chemicals that are produced from salt are
caustic soda, chlorine, hydrochloric acid and soda ash. For human
consumption it is used in almost all prepared food, fishing industry and meat
packing. For general uses, it is used in tannery industry, animal feed, road
de-icing, water softening etc. In Pakistan, salt is mainly used for the
production of caustic soda, chlorine, soda ash, and for human consumption.
Iodated Salt
275. According to UNICEF reports, Pakistan has been and still is worst affected
by Iodine Deficiency Disorder (IDD). Various surveys and studies, carried
Profile of the Top 15 Mineral Projects Solar Salt
out by National and International experts, indicate that substantial portion of
the population of Pakistan (50 million and above) is suffering from IDD
resulting in mental retardation and physical deformation responsible for
socio-economic problems. Further education and literacy becomes
meaningless if the mental and physical faculties are not receptive and
absorptive. There are diseases and losses of production in farm animals
due to deficiency of Iodine. For prevention of IDD, the main strategy
followed all over the world is iodization of salt. However, the efforts done to
date in Pakistan are deficient in implementation and quality. This is evident
from the report recently published titled “ PERFORMANCE EVALUATION
OF IDD PREVENTION AND CONTROL PROGRAMME 2000-2001”
sponsored by UNICEF and Planning and Development Division Government
of Pakistan. One of the conclusions drawn is as under:-
“The problems of quality control is particularly severe in endemic belt area of
NWFP, AJK and Northern Areas where the house holds are apparently mis-
led to believe that they are consuming iodated salt”.
Constraints 276. There are hundreds of small salt producers, making it rather difficult to
regulate and supervise the quality of salt and control its iodization.
277. There is no effective quality assurance procedure for testing iodine in salt
samples taken at producers, retailers and households levels.
278. In public, there is a general lack of awareness/education about the efficacy
of iodized salt.
279. Complicated institutional framework, with little co-ordination is an additional
constraint.
Profile of the Top 15 Mineral Projects Solar Salt
CONCLUSIONS AND RECOMMENDATIONS
280. Pakistan Mineral Development Corporation (PMDC), who operate and produce major share of rock salt, should produce good quality packaged iodated salt. PMDC have all the infrastructure facilities (i.e., electricity, gas,
land, water, railways, roads, skilled workers, workshops, management) at all the mines sites. Possibility of producing high quality free flowing, anticaking iodiate salt from waste materials of salt mines (brine, khallar, and Soor) may be investigated.
281. Regarding hundreds of small ground salt producers, scattered all over the country, it appears prudent to integrate simplest Iodation technology available into the existing system, with as little disruption of habitual salt handling patterns as possible.
282. Impure salt called, “Khallar and Soor’ in local parlance may be used for the
production of salt blocks (mineral mixture) for livestock. Views of Pakistan Agricultural Reasearch Council, Animal Sciences Division may be obtained on the subject.
283. In order to check the quality of iodated salt to ensure that it meets food quality standards, possibility of developing local iodine testing kits be investigated, either by PCSIR labs or NIH Islamabad and given to monitoring teams entrusted with the quality control.
284. Study of manufacturing process of free flowing, anticaking, iodated salt by various countries China, India, Bosnia etc. for the production of crystallized salt should be made to adopt viable procedure such as dry mixing, drip feed addition, and spray mixing.
285. Pakistan may immediately obtain technical assistance from the Mining Institute – Tuzla, Republic of Bosnia and Hezegovina for salt mining and processing.
286. Further specifications and prices of several types of salt iodinization
machine available through UNICEF may be obtained.
Profile of the Top 15 Mineral Projects Solar Salt
10- SOLAR SALT
OVERVIEW
287. Mr. Guy Wikins, a consulting engineer of USA, experienced in setting up
Solar Salt Plants around the world had suggested that tidal islands east of
Karachi appear to be an ideal location for developing high purity solar salt
facility. He is of the opinion that solar salt so produced has export potential
to the expanding south East Asia chemical industries and for the growing
industries established throughout Asia.
SCOPE
288. Bright prospects exist for the development of high purity solar salt facility
around the coastal areas of Karachi. These are the views of Mr. Guy
Walkins consulting engineer having 30 years experience in the design,
construction and operation of solar salt plants around the world. He
expressed his opinion in the letter addressed to the then Minister for
Planning. Mr. Hamid Nasir Chatta. Copy of the same is at Annexure-10.
289. While considering establishment of Keti Bandar Industrial Town and
Industrial Estate in CDWP meeting held on 9th September, 1996. Industries
and commerce section of Planning and Development Division GOP, pointed
out in the working paper that instead of reclaiming marshy land for setting
up Industrial Town and Industrial Estate, possibility of utilization of low lying
inter tidal areas of marshy lands for setting up of solar salt industries as
practiced all over the world may be looked into. The scientists of the Institute
of Oceanography agreed with this proposal. The decision of CDWP reads
as under:
Profile of the Top 15 Mineral Projects Solar Salt
290. Phase - I of both the projects namely (i) Industrial Estate at Keti Bander PC-
II) at an estimated cost of Rs. 20 million (FEC Rs. 5 million) and (ii)
Industrial Town at Keti Bander (PC-II) at an estimated cost of Rs. 9 million
(FEC Rs. 2.5 million) were approved subject to the inclusion of the least cost
location analysis for the Industrial Estate and Industrial Town in the
Feasibility Study. This will ensure the utilization of low lying inter-tidal areas
and marshy lands for setting up of solar salt industry as practiced all over
the world instead of undertaking expensive reclamation for the subject
projects.
291. Phase-II of the projects would be initiated if required on the basis of the
feasibility studies carried out under Phase-I. A separate PC-II/PC-I for
Phase-II would be prepared for processing through CDWP/ECNEC.
292. The feasibility studies should be undertaken subject to the availability of
Korean or any other grant.
RECOMMENDATIONS 293. Keeping in view that solar salt facility will produce high purity salt mainly for
export purposes to meet the ever increasing demand of south east Asia
chemical industries and the growing established industries throughout Asia,
availability of marshy land, suitable climate and excellent geographical
location around the coastal areas of Karachi, it is prudent that necessary
feasibility study by hiring foreign consultant may be under taken.
Profile of the Top 15 Mineral Projects Magnesite
11- MAGNESITE
Emphasis on Kumhar Magnesite Ore Deposits, Abbottabad, NWFP OVERVIEW 294. No basic refractory bricks manufacturing plant exists in Pakistan though
quality magnesite and chromite, the principal raw materials are available in Baluchistan (Muslim Bagh and Khuzdar) and NWFP (Kumhar; Abbottabad). Hence, all basic refractories bricks used in cement, Pak Steel, steel melters, foundry industries, non ferrous industry, glass industry and other heat installation units have been and still are being imported from Japan, Germany, Austria, UK, Spain and other countries costing colossal amount of foreign exchange.
295. A number of feasibility studies carried out both by the national: M/s Minkoh
International, PIDC and International Consultants. Chinese and JCI of Japan, confirmed that the project is viable. PIDC who used to hold the lease for magnesite mines at Kumhar in District Abbottabad established around 11 million tons geological and 3 million tons mineable reserves containing acceptable 46% - 47% magnesium oxide. PIDC in 1995 planned a project to produce 30,000 tons/year of basic refractory bricks to meet the ever-increasing domestic demand. PIDC has wounded up project in August, 2002. The estimated cost based on the latest feasibility study (subject to revision) is around Rs. 1,500 million, IRR at 24% with a pay back period of 7 years. All along efforts were made to acquire technology and know-how from foreign suppliers for manufacturing of basic refractories.
Profile of the Top 15 Mineral Projects Magnesite
STATUS AND SCOPE Kumhar Magnesite Ore Deposit 296. Kumhar magnesite ore deposit is located in Hazara at about 35 Km west of
Abbottabad (see location map- Fig-19). Geologically, magnesite is formed due to hydrothermal activity. There are 14 lenticular bodies of the magnesite ore found in Kumhar area. Lense 1&2 are the biggest and have been studied in detail. The total resources are 11.0 million tons with an average of 45% Mgo content. These deposits are adequate enough to meet all the immediate needs of Pakistan in cement, Pak-Steel, steel melters, re-rolling mills, glass and foundry industry. Consumption of burned magnesite chromite bricks in various industries is as under:-
Cement – 0.7 Kg/ton; Pak Steel 1.90 Kg/ton; Steel Melters 5.5 Kg/ton, Glass 5.5 Kg/ton, Foundry industry 5 Kg / ton, Re-rolling mills 2.15 Kg / ton
and Mortar 5% of the basic refractories bricks. Based on these conversion factors, the present and foreseeable demand of basic refractory bricks can be made.
CONCLUSIONS AND RECOMMENDATIONS 297. Based on a number of studies (marketing, technological and financial), it
has been concluded that refractories with excellent strength under high temperatures, less shrinkage and other general physical properties, meeting ISO 9002 requirements can be manufactured from locally available raw material. It is therefore, recommended that the old studies be updated with a view to attracting the interest of investors. As PIDC has abandoned the project in August, 2002, Govt. of NWFP/Export Promotion Bureau may undertake this task. This is both import substitution and export oriented project.
298. Further it has been proposed that a techno-economic study may be
undertaken to determine the feasibility of simultaneously establishing a refractory brick plant using magnesite from Kumhar mines and also a plant to produce a new kind of fertilizer called Fused Magnesium Phosphate (FMP) using low grade phosphate from the Kakul and low grade magnesite from Kumhar mines, both of which have so far remained largely unused.
Profile of the Top 15 Mineral Projects Limestone for Lime
12- LIMESTONE FOR LIME
OVERVIEW
299. Pakistan is bestowed with extensive deposits of suitable quality of limestone
in the provinces of NWFP, Punjab, Sindh, Balochistan and Northern Areas.
Geologically, they occur in rocks, which vary in age from pre-Cambrian,
Permian, Jurassic, Cretaceous, Paleocene and Eocene. The chemical
analysis of the channel samples collected from the various deposit areas
show that all the elements are within the permissible limits of the production
of portland cement. The average content of Cao is +50%, Sio2 2%, Mgo less
than 3%, K20 + Na2O not more than 1%. Though reserves of limestones are
large but the requirement of production of lime is restricted to fine-grained,
medium to high-purity limestones. Lime (calcium oxide) is produced from
Limestone (calcium carbonate) upon heating to about 9000C. Lime so
produced has immense contribution to sanitation, public health, water
treatment and stabilization of dirt roads etc. The average annual production
of limestone is 8.7 million tons used mainly in the manufacture of cement,
road making, building construction and in the chemical industries.
Importation of chalk during 2001-02 was 2,197 tons valuing Rs. 25 million.
STATUS
300. Technologically, limestone upon heating to about 9000C, looses carbon
dioxide giving rise to lime or calcium oxide. With the addition of water,
calcium hydroxide known as slaked lime is produced.
301. Typical lime-kiln used in Pakistan comprises a large bottle shaped kiln, built
of ordinary clay bricks and standing 5 to 8 meters high. Fuel used is either
coal or wood. An improved version of kilns in use over the last about 30
years is made of iron or steel with upto 10 meters in height and using
Profile of the Top 15 Mineral Projects Limestone for Lime
natural gas or furnace oil as fuel. The end product usually comprises lumps
of lime, similar in appearance to the original limestone but much softer.
There is also abundant ash where wood and coal is used instead of other
cleaner fuels. These kilns are inefficient, labour intensive, costly, low
production capacity of 30 to 40 tons per week compared to medium scale
modern kiln producing more than 100 tons per day.
SCOPE 302. White wash commonly produced from lime has significant benefits from
hygienic point of view. Extensive white washing in rural villages and slum
areas create an impression of cleanliness.
303. Lime repels flies and other insects, being caustic reacts with the waste
substances neutralizing them and reducing odours. This very effective and
cheap sterlization diminishes the vectors of diseases and improves public
health significantly e.g. malaria, TB, hypatites, etc caused by unhygienic
conditions created in villages and slum areas by standing water in ponds
and other human, animal and industrial pollution.
304. Lime is extensively used in semi desert countries for stabilization of dusty
roads. In the rural context of Pakistan, the increasing road traffic is creating
dust problem with consequent irritation to eyes, nose and throat. Adjacent
crops also suffer from the coating of dust and the overall safety factors. In
Western Europe and North America, lime is commonly applied during the
compaction processes of road foundations giving improved load bearing
characteristics.
305. Lime is extensively used in purifying public water supply by increasing the alkalinity making it less favourable to bacterial development. Although less effective than chlorination but it is much cheaper.
Profile of the Top 15 Mineral Projects Limestone for Lime
306. Exploitation of massive sulphide deposits i.e. porphyry copper deposits of
Balochistan and sulphurous coal produce acidic water. Lime is the standard substance and answer for its rectification.
307. Lime is used in the production of soda-ash, neutralization of acidic liquids
that result from the sugar manufacturing process and also used for the manufacturing of calcium carbide, the starting point for acetylene production.
CONCLUSIONS AND RECOMMENDATIONS 308. From above paragraphs, it is evident that huge market exists for the
development of lime industry to improve environment, minimize diseases and increase productivity. Further it has extensive uses in chemical and metallurgical industries. Based on these requirements, it is recommended that:
309. An evaluation study of lime-industry as it stands in Pakistan today, its
production and end uses need to be inventorized; 310. Fine grained, medium to high purity limestones suitable for the manufacture
of lime may be identified through geo-scientific technologies. Limestone with a coarsely crystalline texture generally shows an increased tendency to decrepitate on calcination compared to fine grained material.
311. Undertake laboratory characterization through the application of X-ray
diffraction, thermogravimetry and thin section studies. 312. All these activities may be undertaken by specialists experienced and
trained in lime- production technology.
Profile of the Top 15 Mineral Projects Kaoline (China Clay
13 - KAOLIN (CHINA CLAY)
OVERVIEW
313. Kaolin (china clay) is a white clay consisting predominantly of kaolinite A14
Si4O10 (OH)8. Its main applications are in: i) ceramics to confer whiteness to
ceramic body and has good casting properties; ii) paper filling and coating to
fill the body of the paper, improving printing qualities and reducing overall
cost; iii) paint as extender in a wide range of paint formulation; iv) rubber as
a reinforcing non-black filler to improve strength and resistance to wear and
also added as an inert filler to reduce the cost of the product; v) agriculture
as an anti-cacking agent and carrier for fertilizer and insecticide; and vi)
pharmaceuticals for use as carrier. Pakistan has a well developed ceramic,
paper, paint, rubber, agriculture and pharmaceutical industries and hence
has big demand of quality kaolin. Presently the major production comes
from Shah Dheri; Swat where an elutriation plant has been established.
Country’s average yearly production of china clay is 61,000 tons while
imports during 2001-2002 was 10,800 tons valuing Rs. 145 million. Based
on the laboratory evaluation tests and beneficiation trials on Nagarparker
clays; Sindh, estimated to contain about 3.6 million tons of reserves, have
been considered as the best china clay so far found in Pakistan.
STATUS AND SCOPE Geological Set up and Chemical Composition 314. Geologically, kaolin deposits are classified as either primary or secondry.
Primary deposits are formed as a result of in situ alteration of parent rock by hydrothermal, weathering and/or volcanic processes. Sedimentary kaolins are derived by the erosion of pre-existing deposits and subsequent transport and re-deposition in a non-marine environment. In Pakistan, the known deposits are of sedimentary origin.
Profile of the Top 15 Mineral Projects Kaoline (China Clay)
315. The chemical composition of raw and washed kaolin of Shah Dheri Swat
and Nagar Parker Sindh is as under:
Table19: Chemical Composition of Raw and Washed Clays of
Shah Dheri and Nagar Parkar
SHAH DHARI
Constituents Raw Washed Sio2 42 to 58% 46 to 48% Fe2 03 1 to 5% 1 to 5% Al2 03 31 to 36% 34 to 37% Ca0 9 to 13% 3 to 7% Mg0 1 to 3% 1 to 2% Na20 1 to 2% 1 to 2% K20 Traces to 0.2% Traces to 0.2% Loss on ignition 4 to 5% 9 to 12% Source:- Geology of china clay of Swat, Moosvi et al 1974
NAGAR PARKAR
Constituents Raw Washed Sio2 36 to 60% 46.06% Fe203 0.2 to 2% 0.85% Ti02 0.2 to 3% Al203 10 to 38% 35.70% Ca0 0.5 to 6% 1.31% Mg0 0.5 to 2% 0.34% Loss on ignition 5 to 21% 14.23% Source:- Pakistan Mineral Potential. T.B. Griffiths, 1987
Profile of the Top 15 Mineral Projects Kaoline (China Clay)
316. The chemical analysis of Islamkot kaolin estimated to have 200 million tons resources is as under:
Table 20: Chemical Analysis of Islamkot China Clay
No. Test
hole No. Depth (metre)
Loss on
ignition
SiO2 Al2 O3 Fe2O3 TiO2 CaO MgO
1. STP-8 157.28 14.18 44.84 37.58 1.52 0.7 2.10 0.1
2. “ 168.4 13.9 45.40 35.18 1.52 0.5 3.39 0.2
3. “ 195.5 14.86 41.72 39.70 1.20 0.5 1.96 0.1
4. “ 201.0 19.32 36.56 33.80 2.00 0.2 7.29 0.4
5. “ 133.2 14.12 42.80 36.21 1.59 0.6 3.58 0.3
Source:- sub surface kaoline occurrences at Islamkot, S.S.Q Jaffery (undated) CONCLUSIONS AND RECOMMENDATIONS 317. Considering the availability of large deposits of kaolin, it is an early
requirement to initiate their laboratory evaluation leading to preparation of feasibility study.
Laboratory Evaluation may cover 318. Mineralogical, Chemical and Physical characteristics. 319. Small scale beneficiation trials; and 320. The analysis of subsequent products to determine properties relevant to
specific applications. Further the crystal morphology of kaolinite has considerable influence on eventual use.
Beneficiation Trials 321. Almost all kaolin deposits require some form of beneficiation in order to
produce marketable products. The type and amount of processing required depends on several factors, including nature of the raw material and specifications of consuming industries.
Profile of the Top 15 Mineral Projects Kaoline (China Clay)
Feasibility studies 322. Feasibility studies of the above mentioned three Kaolin deposits may be
undertaken covering but not limited to the following: Data collection and review 323. Local data collection and review (labour, legislation, local manufacturers,
environment and safety). Technical data collection and review 324. Local geology, geometry and characteristics of the ore bodies,
assessment of the beneficiation tests carried out to-date, review of existing reports
Preliminary Technical/Economic Studies 325. Collection of representative bulk samples, Bench scale tests, Market study,
Based on above, to prepare a development concept covering ore reserves, grades and quality, capacity of the mine, mine to plant transport, techno-economic evaluation.
Detailed Technical Studies 326. Pilot plant tests, mining and processing parameters, utilities, infrastructure
and environmental considerations. Financial and Economic Evaluations 327. Capital investment costs and related expenses, production cost, project
financing, financial analysis, sensitivity analysis, socio-economic impact. 328. If the viability of china clay mining and its processing into three marketable
grades: ceramic grade, filler grade and coating grade is established, a large mining cum industrial project can be set up that may offer socio-economic benefits to a large number of people in the under developed regions of Sindh & NWFP. Further, it will have significant impact on national economy and save substantial foreign exchange through import substitution.
Profile of the Top 15 Mineral Projects Natural Stones-Granite,Marble and Onyx
14- NATURAL STONES AS BUILDING MATERIALS
Granite, Marble and Onyx
OVERVIEW 329. Pakistan has enormous wealth of decorative and building stones such as
granites, diorite, dunite, tonalite, pyroxenite, syenites, serpenites, gabbro,
onyx, marble of different shades, recrystallized limestone, fossiliferrous
limestones, sand stone and magnesium sandstones etc. These materials
occur on the surface mostly in accessible areas and therefore lend
themselves to economic open cast bulk mining. Pakistan exported less than
10% of the total production of granite/marble during 2001-2002 valuing at
Rs. 296 million that appears to be insufficient when the country is blessed
with huge and varied types of natural stone deposits. Presently, processing
industry relies upon local manufacturers of machinery and equipment with a
very few calibrated and high efficiency machines. Roughly 82% of
intermediate products from the mines are traded in local market with only
7% going for export with marginal value addition.
330. Considering that onyx of Pakistan is world over famous, granite in wide
variety of colours, shades and texture are most sought after and other types
of marbles and natural stones have potential market, it is necessary to
develop industry of commercial stones. Accordingly, economic assessment
of viable deposits is a pre-requisite for the consideration of investors.
Profile of the Top 15 Mineral Projects Natural Stones-Granite,Marble and Onyx
STATUS Granites 331. Nagarparkar in the south (Sindh) and Manshera in the north (NWFP), so far
known are the only sources of workable granites in the country. However, Gilgit region (northern areas) do indicate great potential of variety, quality and quantity of granites that according to geological evidences have superiority over other granites in Pakistan.
332. Granite being mined at Nagarparker is of pink, grey and bluish grey colour,
fetch low prices in the international market. Manshera granites also have little commercial value. Thus Gilgit granites because of rarity of shades and pattern holds encouraging future. Map showing location of the main granite areas is at Fig-20 and granite deposits of Gilgit area of Fig-21.
333. The reserves of granite in Pakistan have not been specifically estimated, yet
broad figure of billion of tons is generally quoted. For Northern Areas an NGO quotes 400 million tons of reserves.
Table 21:- Major Color and Shades of Natural Stones
Major Colors Categories
Name of Areas Colors/Shades
Black Mansehra, Gilgit, Dir, Swabi, Kohistan, Chitral
Jet black
Pink Dir, Swat, Nagarparkar, Kohistan,
Pink
Grey Gilgit, Dir, Mansehra, Buner, Malakand, Chagai
Silver lining grey: Greyish green
Green Chagai, Dir Green with golden bends
Gold and Yellow Kohistan, Swat, Dir Golden yellow White Gilgit, Baltistan,
Malakand. Dir, Chitral White
Red Dir, Swat, Kohistan Not given (Source: Industry and Market research by SMEDA 1999)
Profile of the Top 15 Mineral Projects Natural Stones-Granite,Marble and Onyx
Marble and Onyx 334. Onyx occurs mainly in Baluchistan, Chagai district while marbles of different
classifications, fossilferrous limestone, serpentine etc. occur in other provinces mainly in NWFP and Northern Areas. Out of 160 million tons of marble reserves estimated in Pakistan, 158 million tons are in the NWFP and 2 million tones in Balochistan. Marble stones are graded on the basis of color/shade, pattern and grain size. Grain size though does not influence the esthetics of the material but has its impacts on the usage. Balochistan onyx is favourite in the world markets and is used for facing, flooring and decorative items.
Table 22: Color and Shades of Marble & Onyx
Major Colors Categories
Name of Areas Colors/Shades
MARBLE White Muhammad Agency, Chitral,
Buner, Swat, Parachinar, Gilgit, Hunza, Swabi, Malakand
Pure white: white with pink, brown and green shades, white to light grey; white to grey with yellowish patches, white to light grey with yellowish brown patches; creamy white
Black Buner, Bajour, Mardan, Bela Deep Black: with patches of white: Black with white and golden steaks
Green Swat, Swabi, Buner, Azad Kashmir and Lasbela
Dark Green, green with streak & patches of white, grey and black, greenish white. greenish grey
Pink Nowshera, Chitral, Lasbela Pink with streaks and patches white, grey, red and brown: pink with fossils.
Grey Buner, Bajour, Mardan, Swat, Mohammad Agency, Lasbela and Khuzdar
Grey with white bands grey with pink, brown and green patches.
Brown Buner, Swat, Kohat, Waziristan, Khuzdar and Lasbela
Dark Brown with white lines, brown with yellow patches, light brown with fossils.
Yellow Buner, Kohat, Lasbela, Khuzdar
Yellow with golden patches: yellowish golden with fossils
ONYX Green Not given Dark green with layers of
light green, green with streaks of white and yellow
White Brown banded
Not given White with layers of light gray
Source: Industry and Market Research by SMEDA 1999.
Profile of the Top 15 Mineral Projects Natural Stones-Granite,Marble and Onyx
Mining Practices 335. The status of both mining and processing (the latter being equally vital both
for quality and technology) is pathetic. Mining is also being done by primitive methods with a few exceptions of medium level technology. Imported processing and finishing plants are working at below capacity level and/or are in doldrums for financial constraints and problems with the DFIs as mentioned in SMEDA report (1999) on natural stones.
SCOPE 336. Pakistan, despite having very good varieties of colour and shades, quality
and texture as well as significant size of deposits is an insignificant player and our share in the world production is much less than 1%. Moreover, no mention of Pakistan is found in the international trade. However, with the quality value and the quantum of the vast available resources, the potential of export can be exploited for progressively capturing a sizeable share of the fast expanding international market. Subject to positively effective and implementation of a soundly based and concrete policies, Pakistan can look forward to Jump-start in a phenomenal growth in dimension stone industry and trade and aim at reasonable increase in share in the export trade within foreseeable future.
337. According to a study carried out by Small and Medium Enterprise
Development Authority, production in Pakistan as known in the industry and trade circles is much higher than the official statistics. It stood at 1.386 million tons for the year 1997-98 up to the mid nineties, 18% growth was recorded and a downward trend had been observed thereafter. The President of Marble Granite Association of Pakistan has reported a phenomenal growth of 24% between the years 1999-2000 and 2000-01. Feasibility Study of Mining and Insitu Block Cutting of Marble and other Decorative Stones in FATA, Pakistan was carried out by the Geological and Mining Consulting Services (GEOMINCO). Relevant portion of the Executive Summary, Conclusions and Recommendations drawn are annexed at Annexure-11.
Constraints 338. A few major impediments are:
• Slow down in construction industry • Primitive, deficient and wasteful mining practices.
Profile of the Top 15 Mineral Projects Natural Stones-Granite,Marble and Onyx
Poor processing technology and practices. • Inconsistency of quality of products. • Lack of progressive marketing strategy. • Poor infrastructure
CONCLUSIONS AND RECOMMENDATIONS 339. Geological evidences indicate large deposits of good varieties of color and
shades, quality and texture of granites, marbles, onyx and other types of stones occur in Pakistan. According to one report, India is number four exporter of building stones. However, Pakistan with a little effort can achieve this position if a study with the following Terms of Reference is initiated.
Review 340. To tabulate and inventorize all stones occurrences with their main geological
and mineralogical characteristics. Geological and Locational Aspects 341. To prepare topogeological maps (1:50,000 scale) showing location of high
quality stones, their geological set up, surroundings, existing infrastructure and utilities.
Techno-economic Aspects 342. Collection of samples from the main sites for undertaking specialized testing
keeping in view their techno-economic values including but not limited to the following: i) Degree of fracturation and aesthetic aspect: ii) Access and transportation cost; iii) Identification of main deposits highlighting their reserves, quality
(attractiveness, homogeneity of crystal colour and size), texture, ability to take polish, block/slab size, freshness/alteration of minerals, and infrastructure and utilities.
iv) Rough estimation of reserves and mining and processing costs, etc. Marketing Aspects 343. To obtain opinion of dealers of imported stones in foreign countries about
the commercial interest.
Profile of the Top 15 Mineral Projects Gemstones
15- GEMSTONES
Precious and Semi-Precious Stones of Pakistan
OVERVIEW 344. The history of coloured gemstones, covering their mining, cutting and
shaping in the area now constitutes Pakistan, dates back to the Indus Valley Civilization about 4000 years. This is evident from the gems and gem-studded Jewellery recovered from the archeological sites at Mohenjodaro, Harrapa, Gandhara and Taxila. It abundantly indicates that the skill of cutting and shaping the precious stones, even at that time was marvellous, considering the simple tools, the artesian must have used in fashioning the stones. Pakistan, until a few years ago, unknown in the internationally gem market as a gem producing country, now reported to be sporadically producing about 30 different gems and precious stones (Table-23) besides emeralds and rubies. Presently, through systematic geological mapping by the Geological Survey of Pakistan, in collaboration with foreign scientists, a large variety of gemstones have been found in the northern areas of Pakistan that is regarded as kingdom of gemstones. The geological setting of gemstones, their occurrences, mining, beneficiation, cutting, polishing & marketing aspects are briefly described.
Geological Setting 345. Geologically, the Northern Pakistan consisting of North-West Frontier
Province, Northern Areas and Azad Kashmir, represent the most dynamic environment for the formation of precious stones (Fig-22). The loftiest mountains of the world, the Hindukush, Karakoram and Himalayan mountain ranges rising to more than 8,535 meters (28,000 feet), host almost entire gem potential of Pakistan, comprising a number of precious and semiprecious gemstones deposits and fascinating mineral specimen. The lithologies and geo-dynamics, controlled by plate-tectonic setting, a complex suture zone developed resulting from collision of the Eurasian and Indian
Profile of the Top 15 Mineral Projects Gemstones
plates. Throughout this suture zone, planes of weaknesses formed, providing channels through which new mineral forming solutions could migrate and penetrate the host rock. The result: Coloured Gemstones - notably emerald, ruby, topaz, tourmaline, aquamarine, pargasite, peridot, a variety of fascinating mineral specimen, several of which adorn the museums in many parts of the world.
Table 23: GEMS, PRECIOUS AND SEMI-PRECIOUS STONES REPORTED TO
BE OCCURRING IN PAKISTAN
1. Actinolite 11. Hessonite 21. Rodingite
2. Agate 12. Idocrase 22. Rutile
3. Aquamarine 13. Jedeite 23. Ruby
4. Amazonite 14. Kunzite 24. Serpertine
5. Azurite 15. Kyanite 25. Spessartine (garnet)
6. Beryl 16. Marganite 26. Spinel
7. Emerald 17. Moonstone 27. Topaz
8. Epidote 18. Pargasite 28. Tourmaline
9. Garnet (alamandine) 19. Peridot 29. Turquoise
10. Garnet (green,grossular) 20. Quartz (citrin & others) 30. Vesuvianite Source: Geological Survey of Pakistan - Quetta * reportedly being mined. GEMSTONE DEPOSITS OF NORTHERN AREA
Ruby 346. Ruby deposits occur in 100 Km dolomitized marble belt extending between
Hunza Valley and Ishkuman Valley. The rubies are transparent to translucent and brownish pink to pinkish red or deep red colour. Pakistan is the only region in the world (after Burma, Vietnam and Combodia) that is producing blood red rubies. These rubies are in great demand and fetch a very high price in the present day gem market. Violet or indigo colour sapphires also occur with rubies.
Profile of the Top 15 Mineral Projects Gemstones
Aquamarine 347. Light blue, transparent and clear euhedral crystals of aquamarine occur in
abundance in the gem bearing pegmatites of Gilgit, Skardu and Hunza areas. The important deposits of aquamarine are located in Dasso, Haramosh, Sumayar, Skardu and Shigar areas. Considering vast distribution of gem bearing pegmatites in Northern Areas of Pakistan, the potential for their exploitation to produce large quantities of aquamarine and other gem materials and mineral specimen is very large.
Tourmaline 348. Gem quality tourmaline of pink, blue and green colours is found in the
pegmatites of Haramosh Range, District Gilgit. The best known deposits are in Stak Nallah producing bi and tri colour tourmaline crystals and mineral specimen. The crystals are dark green or black at the base with grass green, blue or pink termination. The tourmaline bearing pegmatites, have fairly large potential for development.
Topaz 349. Topaz bearing gem pegmatites are largely found in Bulechi and Shingus
areas of District Gilgit and near Dasso in Skardu District. Topaz crystals are colourless to yellowish brown to deep cherry colour. The potential of these deposits is also fairly large.
Spinal 350. Spinals, with a variety of colours ranging from brown, red, plum red, violet to
blue, are closely associated with Hunza ruby deposits. These often occur as euhedral crystals and are far more attractive than the spinals associated with the ruby deposits elsewhere in the world.
Pargasite 351. Pargasite, locally termed as Hunza emerald, is found in metamorphosed
crystalline marbles of the Hunza ruby belt, in association with ruby and spinal. The crystals are translucent to opaque with exquisite deep pistachio green colour and produce fascinating cabochon grade material.
Profile of the Top 15 Mineral Projects Gemstones
Moon Stone 352. The gem bearing pegmatitie of Shengus and Bulechi areas, District Gilgit,
host the moonstone deposits. The colour ranges from soft grey to silvery white. The deposits are of good quality, fairly large and can ensure steady production.
Garnet 353. Gem quality, red colour spessartine garnet is found in gem pegmatites of
Shengus (Gilgit) and Dasso (Skardu) areas. Perfectly developed crystals of garnet, in association with other minerals, constitute beautiful mineral specimen.
Quartz 354. Clear and well-formed crystals of quartz, are found in the gem bearing
pegmatites of Hunza, Gilgit and Skardu Districts. Smoky quartz, is also commonly found in these areas whereas rose quartz is in abundance in large pegmatites near Dassu, District Skardu. The bunches of quartz crystals in association with black tourmaline and other minerals, make good mineral specimen.
Epidote 355. Good quality gem grade epidote crystals are found in hydrothermal veins
near Hanochil (Gilgit) and Gulodas (Skardu). The localities have reportedly produced some of the most fascinating mineral specimen.
GEMSTONE DEPOSITS OF NWFP Emerald 356. Emerald is the principal gemstone in Pakistan. The variety and uniqueness
of emeralds, found and mined only in a few locations, Shamozai, Mingora, Gujjar Killi, Makkad and Charbagh, is the result of an unusual combination of beryllium and chromium, two elements not normally associated in nature but brought together by complex geological processes. Emerald mineralization is also reported at a number of localities in Mohmand and
Profile of the Top 15 Mineral Projects Gemstones
Bajur Agencies but the potential of these deposits have not been fully
evaluated. The potential of enhancing the emerald production in Pakistan is substantial through scientific mining and processing. Further bright prospects, exist in discovering more emerald deposits through systematic and scientific exploration of 150 Km long belt along the Indus suture zone, particularly in and around Mohmand and Bajur Agencies. The inferred/proven emerald deposits of Mingora, Gujar Killi and Shamozai have the estimated resource of over 50 million carats, which are being placed for open auction for sizeable investment. Tender documents in each case are readily available with the department of Director General Mines & Minerals, Govt. of NWFP, Peshawar.
Topaz 357. Pink and pale beige colour topaz deposits occur near Katlang and
Shamozai village about 70 Km north of Mardan. The pink topaz of Katlang is a unique stone unparalleled in the world. It is only found in Pakistan and hence needs aggressive and proper marketing. Geologically, the belt of the host rocks, extends upto Buner area for about 40 km. Good geological environment finding large deposits suggest systematic exploration programme for future development.
Tourmaline 358. Indicolite (blue tourmaline) is found in gem bearing pegmatites near Garam
Chasma in District Chitral, which needs further exploration for evaluation of its potential.
Peridote 359. Gem quality peridote has been discovered in the recent past in Hazara,
Kohistan to the north east of Naran in Kaghan valley. The deposit has reportedly produced brilliant gem quality material and fascinating mineral specimen. The deposit is being exploited by local tribes and has not yet been fully evaluated. Ultra mafic-hosted peridote gem in Spat Kohistan, should have possible extension upto Jijal across the Indus river in the west for more than 30 km.
Profile of the Top 15 Mineral Projects Gemstones
Aquamarine 360. Deeper colour aquamarine is reported from Gobar-o-Bakh area in District
Chitral, which is high priced. The area merits proper exploration and development from the viewpoint that good quality aquamarine, tourmaline and kunzite bearing pegmatites are found in Afghanistan, just across our border.
Garnet 361. Gem quality almandine (red) garnet is found in Chitral District. Beautiful
honey yellow, euhedral crystals of hessonite garnet in minable quantity, are found near Targhao in Bajur Agency.
Quartz 362. Clear and well-formed crystals of quartz occur in gem pegmatite near
Garam Chashma in District Chitral.
GEMSTONE DEPOSITS OF AZAD KASHMIR Ruby 363. Ruby mineralization was discovered in Nangimali, Chitta Katha, Khundigali
and Naril in Shontar Valley and Kalejandar areas in Neelum Valley. Nangimali deposit was however, subjected to detail exploration by the Azad Kashmir Mineral and Industrial Development Corporation (AKMIDC), owing to its favourable environments.
364. The ruby mineralization is hosted in metamorphosed limestone in an area of
1.8 X 0.5 Km. The thickness of ruby zone ranges from 3 to 6 meters. The pilot scale mining in Nangimali area has established a recovery ratio of 11 gms (55 carats) per cubic meter of limestone. The mineralization is spread over large area, therefore, the combined resource potential of all the deposits is considered to be fairly large.
Profile of the Top 15 Mineral Projects Gemstones
365. The colour of ruby crystals vary from pinkish red to deep red and improve in
depth to almost pigeon blood red. The crystals are semi translucent to transparent. The colour and grade of Kashmir rubies is much better than the Hunza rubies. Pilot mining has yielded very good cabochon and faceting material, besides good quality mineral specimen.
Tourmaline 366. Tourmaline bearing pegmatites have been found in Dunga Nar area of
Upper Neelum Valley. Green, red (rubellite) and bi-colour tourmaline has been found in these pegmatites. The most productive pegmatite is exposed for 80 meters in length and 1.5 meters in width. The depth of pegmatite is estimated to be about 40 meters. The deposit has produced good quality carving materials and some excellent quality mineral specimen.
Pink Beryl 367. Some pink beryl crystals have also been found associated with tourmaline in
the pegmatites of Dunga Nar area. MINING, PROCESSING AND MARKETING OF GEMSTONES 368. Due to the irregular, patchy and erratic distribution of gemstones, it is
difficult to design and undertake large scale mining and processing operations. For this reason, gemstones operations are mostly small-scale, simple and manually sorted, avoiding the rough treatment in mining or processing, which could damage crystals. Based on these inherent natural limitations, gemstone mining and other subsequent activities are mostly carried out by small private operators. The involvement of Gemstones Corporation of Pakistan (GEMCP) a limited public company, established in 1979, in the entire sequence of operations from exploration and mining through gemstone cutting, polishing and selling, has failed. This organization was liquidated in less than two decades due to monetary losses. Accordingly, the Government of NWFP have auctioned / granted mining leases to the interested parties. There are about 500 units involved in cutting and polishing of gems in Peshawar, Lahore and Karachi. Further fluctuation in the supply of gemstones makes it impossible to set up regular pricing structure. This is probably the practice all over the world.
Profile of the Top 15 Mineral Projects Gemstones
MINERAL SPECIMEN 369. The Pegmatities of Northern Areas have yielded excellent mineral specimen
including light pink crystals of fluorapatite, green fluorite, acquamarine
tourmaline, topaz and garnet. Exquisite mineral specimens of ruby, spinal
and pargasite are found in Hunza Valley. Beautiful pyrites, malachite and
azurite specimen can be collected near Gilgit. Other mineral specimens
reported in the northern mountains regions need further prospecting and
can yield substantial amounts of high price collector's specimens.
CONSLUSIONS AND RECOMMENDATIONS 370. Mining and Marketing of gemstone is notoriously difficult to regulate and
control. The high unit value of the stones and the ease of hiding and transporting even relatively large stones, make the industry very difficult to control. Pakistan is not an exception.
371. The major problems hamper its growth, have been and still are inadequate
geological data, non availability of latest technology in exploration, Illicit mining and illegal export of Pakistani gemstones, remoteness of majority of gem bearing areas, lack of physical and human infrastructure and other relevant regulatory, fiscal and financial matters. According to one estimate, the cost difference between uncut and cut gemstone is one is to hundred (1:100). Thus Herculean efforts are needed to streamline its growth from technical, financial, commercial and environmental standpoint.
372. The major role is of relevant Federal and Provincial Governments, Public Sector Organizations dealing directly with gemstones operations, professional bodies and associations. In this context, Government of NWFP have set up Gem and Gomological Institute for training of cutting and polishing of gemstones to workers. Hopefully with these actions, the present level of export of gems worth about US$ 12 million would be enhanced to about US$ 100 million in a short span. However, these
Profile of the Top 15 Mineral Projects Gemstones
organizations may initiate the basic tasks of geological mapping, application of scientific means and methods of their exploration, mining and beneficiation, establishment of gemological centres, development of viable and implementable financial mechanism, aiming to developing it as cottage, small scale and medium scale industry.
373. Relevant Federal Ministry and its Departments / Bureau may assist and
facilitate in the export of natural gemstones as synthetic gems in
international market are making it difficult their marketing. Promotional
activities are, therefore, pre-requisite for efficient marketing. It is necessary
to publish gemstone situation in the renowned gem journals. Export
programmes need to be initiated to encourage legitimate flow of gems.
Further, Pakistan can learn many lessons from the highly successful Thai,
Brazilian and Sri Lankan gem industry, especially in its exploration, mining,
processing technology, value addition and training.
Geo Tourism – The Salt Range
GEO-TOURISM
THE SALT RANGE - A Treasure of Tourism
OVERVIEW 374. Tourism is being recognised as an activity generating a number of social
and economic benefits. Domestic tourism promotes social and cultural
cohesion and national integration while international tourism help in
developing understanding of our cultural - historical heritage and support to
local handicrafts, etc. In this context, the "SALT RANGE meets, to large
extent, requirements of tourism from social, educational, heritage, etc stand
point and need to be designated as THRUST AREA for its development.
375. Salt Range is situated in northern half of Punjab and extends over a
distance of some 160 kms starting from river Jhelum in the east and runs
westward upto Kalabagh and beyond (Fig-23). It is covered with extensive
road grid system and other infrastructural facilities such as railways, power,
water, manpower, etc. It is accessible through motorways from Islamabad to
Kallar Kahar lake in about two hours from Islamabad as well as through
Grant Trunk road, railways and helipads. Its name as Salt Range was first
used by Mr. Elphinston, a British envoy in the Court of Kabul who travelled
across this territory in 1808 to 1815 and noted the extraction of salt in this
area and hence named it as Salt Range.
Geo Tourism – The Salt Range
STATUS AND SCOPE Geological Aspects 376. Geologically, the Salt Range, because of its excellent exposure of more or
less complete stratigraphic sequence (oldest pre Cambrian to recent Siwalik Series) has attracted specialists and geo-scientists from all over the world and rightly called "FIELD MUSEUM OF GEOLOGY". It has wide range of fossils in well preserved conditions starting from trilobites, brachiopods, corals, ceratite, ammonits and mammals including walking whales, reptiles etc. These fossils are available in large quantities and have both educational and commercial value. This calls for giving serious consideration for the establishment of Natural History Museum and other recreational sites in the Salt Range, wherein complete scientific background of major fossils of big animals of various geological eras covering but not limited to their age, evolution, rationale of extinction, environmental conditions etc need to be documented. In this context, advise and comprehensive interaction of local experts of relevant discipline of geology, that is palaeontology with international experts to be provided and funded by UNDP/World Tourism Organization is an early requirement. Further, based on its declaration as FIELD MUSEUM OF GEOLOGY by the geo-scientists, necessary steps need to be taken by announcing THE SALT RANGE AS INTERNATIONAL HERITAGE from Paleontological standpoint with a view to attracting technical and financial sponsorship. In India statues of big animals are constructed wherever their fossils were found to attract tourism from recreational and educational standpoint.
377. Regarding mineral potential of the Salt Range, inexhaustible reserves of
rock salt and limestone are present while other minerals such as coal, dolomite, fireclays, gypsum / anhydrite and laterite/bauxite are being exploited and fed into various industries. Further Model Coal Mine at Katas and Rock Salt Mines Khewra, Warcha and at Kalabagh has their own educational and recreational values.
Geo Tourism – The Salt Range
Historical Aspects 378. Historically Alexander the Great visited the Salt Range in the beginning of
May 326 BC and reached GIRJAK (modern Jalalpur Sharif) stayed there for
about two months then crossed river Jhelum and attacked Raja Porus. In
this context, it has been mentioned in a booklet titled “Alexander Monument
and Research Centre” that a project sponsored by Greco-Pak joint venture
when completed would attract tourists from all over the world. Probably
follow up action by the Federal Ministry of Tourism, Sports & Culture is
required. Al-Baruni, a muslim scientist set up his laboratories in the Salt
Range for the determination of circumference and center of gravity of the
earth. Shahenshah Babar stayed at Kallar Kahar lake and documented his
observations about the scenic beauty of the area.
Archeologically Aspects 379. Archeologically, there are a number of temples such as at Katas,
monasteries, caves, forts, etc. These require immediate attention of the
relevant institutions / ministries for their in-depth studies, documentation and
circulation.
380. Further sustained efforts need to be made for the development of pilgrimage
tourism covering Muslim (Jalapur Sharif, Choa Saidan Shah) Hindus (Katas)
and other temples and Buddhist pilgrimage tourism. Trekking tourism may
be developed to explore fossils in various gorges of the Salt Range, walking
on the trails left by Alexander the Great and camping at scenic site and
lakes such as Nammal lake, Kallar Kahar lake, etc. Wild life tourism has the
potential for the setting up of national parks and wild life sanctuaries at
appropriate places. Possibility of constructing hospitals and restaurants in
the Khewra Salt Mines for the treatment of ashtama and other physical
ailment as is being done in the rock salt mines of Poland need to be
researched and investigated.
Geo Tourism – The Salt Range
381. The above steps, if correctly and properly documented in the form of project
profiles, would needless to say, facilitate in attracting local and foreign
investment. To start with Federal Ministry of Culture, Sports and Tourism
may hold seminar / conference to highlight the significance of the area by
identifying local resource persons and / or institutions of various disciplines
to prepare and present papers giving review, status and scope of viable and
implementable recommendations for speedier development of tourism in the
Salt Range.
Looking Ahead-Minerals and Mining: Vision & Strategy
CHAPTER - VIII
LOOKING AHEAD
MINERALS AND MINING: VISION AND STRATEGY
OVERVIEW 382. What lies ahead for the Mineral Industry of Pakistan? As constituted today, it
bears little resemblance to the sector projected in official documents, studies & recommendations made in various committees, seminars and workshops held decades ago. It appears Herculean job to predict part or full spectrum of Mineral Sector particularly when the industry is so vast, complex and difficult to see twists and turns that future may bring. Host of problems inherent in the nature of this industry and other man made hindrances have restricted the SEEKING of mineral potential and in turn limited their FINDINGS. This is true inspite of the fact that Pakistan mineral potential is diversified in terms of classes of minerals and its relation with the well known metallogenic systems and types.
383. Presently, mineral exploration, to large extent, is in the early stages of first
‘CYCLE’ of modern exploration in which exploration is aimed at the discovery of large outcropping mineral deposits rather than buried or blind deposits which require high technology, high risk & expensive exploration programme. In spite of the fact that the nature of Mineral industry is different from other industries i.e. complex, complicated, heterogeneous, risky, capital intensive, require long gestation period etc it faces other problems that contribute to its slow and/ or restricted growth resulting in its contribution to GDP that on an average ranges between 0.5% to 1.0%, unchanged over the last many decades.
Conclusions and Recommendations
384. The “other problems” cited as disincentive to exploration include but not
limited to the following: i) Uncertainties in the political sphere including law and order situation.
ii) Weak or non-existence of mining traditions.
iii) Limited mining experience and inadequate capital resources.
iv) Military conflicts divert money and attention from the search and development of mineral resources as happens in other sectors of economy.
v) Wide spread impression amongst local investors that their most attractive opportunities lie in consuming and service industries rather than the risky and capital intensive business such as mining.
vi) Lack of vision in taking advantages of advancement in geological knowledge, exploration techniques, mining and processing technologies and changing commodity prices.
385. In spite of these problems, geo-scientists are convinced that:
i) Mineral potential of Pakistan is widely recognized as excellent but the sector is poorly developed;
ii) The Government of Pakistan made the development of the mining industry as ‘Priority’ Sector in its various Five years plans, but remained slow in monitoring and implementation; and
iii) Adequate Institutional, human, R&D and other relevant infrastructure have been established but remain under utilized.
386. However, given this OUTLOOK, market forces and other relevant factors
have been and still are playing their roles in the overall Demand-Supply, Costs-Prices situation. Small scale production, much of it by small private operators is limited to Industrial minerals, precious and semi-precious gemstones. The metallic minerals such as copper, gold, iron ore, and zinc-lead are in the various stages of evaluation & development, mainly by foreign firms experienced and trained in metal mining industry.
Conclusions and Recommendations
387. In the same vein, Pakistan, over the last decades have established
geological and R&D infrastructure, mineral development institutions and academic institutions. Many geosciences R&D institutions administered by the Public Sector are well equipped with sophisticated mineral identification, testing, exploration, mining and processing equipment and manned by highly qualified manpower.
388. The viability of National Mineral Policy (1995) has been established as is
evident from the agreements entered into between foreign mining parties and provincial Govt. of Balochistan and Federal Govt. Now the stress should be on a few viable projects as described in the following paragraphs.
VISION AND STRATEGY 389. Pakistan has a widely varied geological frame work, ranging from Pre-
Cambrian to the Present, that includes a number of zones endowed with a diverse suite of metallic minerals, industrial minerals, precious and semi-precious gemstones. As the number of mineral occurrences/deposits is very large, it is difficult to describe each of these which is an encyclopaedic task-far beyond the scope of this study. The selection of areas/mineral deposits is therefore based on the following Criteria; i) Primarily metallic minerals, which have good chances of being
exported as well as assumed to be attractive for prospective investors.
ii) Minerals to substitute Imports.
iii) Minerals for local consumption. 390. Keeping these Criterions in view, Capsule Description of Top 15 Minerals
having export potential, import substitution and local consumption are mentioned. This criteria for selection of minerals may assist in focusing on a few viable, implementable and sustainable projects that avoid proliferation of projects and inturn assist in using capital and human resources effectively and productively on Immediate, Short Term and Long Term Basis.
Conclusions and Recommendations
Coal 391. According to the estimates prepared by the Geological Survey of Pakistan
(GSP), Pakistan has total coal reserves of 185 billion tons, out of which 184 billion tons are in Sindh. Quality wise indigenous coals are lignites to sub-bituminous used mainly for power generation and brick kiln industry. Average coal production is 4.5 million tons per annum. The share of coal in overall energy mix during the last five decades declined from 68% in 1948 to 35% in 1958 and to 5% in 2002. This is an alarming situation when thermal power generation is total drain on foreign exchange, hydel power is on the decline and gas resources are depleting. Efforts need to be made for maximizing coal production for its use in power generation, use in cement and sugar industry need to be enhanced and possibility of manufacturing of smokeless coal briquettes be investigated. The exploration and development plans of Thar (Sindh) coal fields may be kept under constant review, while suitable equipment shops may be set up in coal producing mining areas to facilitate the mine operators as contained in various Five Years plans of Govt. of Pakistan.
Copper and Copper Bearing Gold and Silver 392. Tethyan Magmatic Arc, which extends across northern India, through
Pakistan and into Iran and eastern Europe hosts a wide range of ‘WORLD CLASS’ deposits including porphyry copper & gold/molybdenum/silver, epithermal gold/silver, carbonate hosted lead-zinc and copper-zinc deposits. Saindak Copper-Gold Project has become operational and FIRST TIME in the history of Pakistan earned US$ 45 million through the export of blistered copper containing gold. Another project titled “Reko Diq Copper-Gold mineralized Region” controlled by Tethyan Copper company Ltd. (TCC) of Australia that operates in alliance with BHP Billiton have established pipe line of projects at various stages of development. A project known as i) ‘The H4 Starter Project’ established the total resource 108.3 million tons containing 0.7% copper at cut off grade of copper at 0.3% would produce approximately 40 thousand tons of copper per annum and fetch US$ 75 million per annum over the 14 years life of the mine. ii) Western porphyry complex owned by BHP Billion have established 10.287 million pounds of
Conclusions and Recommendations
copper and 9.1 million ounces of gold at an estimated capital investment of
US$ one billion. The project on completion would fetch US$ 500 million per annum over the life of the mine. iii) The other areas that have shown promise of containing copper and gold occur in and around the areas known: Koh-i-Dalil, Buckit Pashin, Pharra Koh, Samkoh and North Koh-i-Dalil. Preliminary surface indications and ground magnetics have defined certain target areas that would be clarified and upgraded through systematic geological mapping, geo-chemical sampling and high resolution geo-physical surveys.
Iron Ores 393. The known iron ore resources of Pakistan are essentially of three types:
i) sedimentary; ii) volcanic; and iii) hydrothermal (contact metasomatic). The sedimentary deposits typically at Kalabagh and D.G.Khan are low grade, containing 30-34% iron and 21-24% silica. The volcanic deposits are in Chilghazi, Chigendik and Pachinkoh of Nokkundi area and hydrothermal/ metasomatic in Daman Nisar (Chitral) containing 40-50% iron and 12-20% silica. The iron ore resources at Kalabagh are 400 million tons while Nokkundi reserves are 50 million tons and Dilband iron ore deposits, estimated to be 200 million tons containing 40% iron contents are located at about 150km south east of Quetta in District Mastung, Balochistan. Recently M/s Bolan Mining Enterprises (BME) have signed a contract with DMT-Montan Consulting Gmbh Germany for carrying out up-gradation/beneficiation study of Dilband ores to upgrade iron content from 40% to 60% to feed PAK STEEL with a view to replacing partial or full imports costing on an average Rs. 3.2 billion per annum for the importation of 1.7 million tons of iron ores. M/s Bolan Mining Enterprises (BME) would supply the fine iron ore about 10,000 tons per month to Pak Steel with effect from 1st December 2003. The Govt. of Balochistan and BME may ensure that the ungradation study may be completed within agreed time frame.
Conclusions and Recommendations
Lead-Zinc Ores 394. A number of sulphide deposits are found in the Jurassic sediments of the
Lasbela-Khuzdar belt of Balochistan. Among the four better known deposits of Surmai, Gunga, Dhungei, Duddar is the most advanced. Detailed geo-scientific studies through mapping and drilling (46000 meters), the total resources and reserves established are 50 million tons and 14 million tons respectively ranging in grade (zinc plus lead) between 11% to 12% at Duddar. Lately this property has been taken over by a Chinese concern. As Lasbela-Khuzdar belt hosts lead-zinc deposits that extends hundreds of kilometer north of Karachi and upto south east of Quetta, it deserves a major geochemical survey to compare with the results of air-borne electro-magnetic survey.
Gold – Placer and Mineralized 395. It is said that search for gold is like hunting for a needle in hay stock.
However the gold mining companies believe that gold constitute hedges against political uncertainty and currency inflation. This is the reason that search for gold has flourished in recent years. The greatest gold field in the World’s history has been the Witwatersrand in South Africa that on an average mine and process 1,50,000 tons of ore to produce one ton of gold. It is reported that some newer mines in US are producing gold from ores with a content of one gramme per ton, so that one million tons of ore are processed to yield one ton of gold. In Ireland, at one gold mines, attempts have been made to recover gold from the tailings by a non-toxic leaching process. These factors hold good for Pakistan also. It has been established that there are indications that Pakistan has a significant potential of gold, particularly in the folded belt regions (Northern Mountain belt, Island Arc system), its association with volcanogenic sequences, porphyry copper and in shear zones. In the Northern Areas, spread of gold anomalies is concentrated along the Main Karakorum Thrust rather than within each geologic unit. The distribution of gold anomalies obtained through geochemical sampling vary between 2 ppm to 330 ppm. High concentration area has been designated as “ARC OF HOPE’ requiring detailed statistical
Conclusions and Recommendations
analysis of work done by Australian concerns who undertook (1992-99) well
planned geochemical surveys with well conceived additional work. Further alluvial gold washing from the sands of Indus river and its tributaries need to be furthered. Gold is also mined from the massive porphyry copper deposits in Balochistan. About thirteen anomalous gold bearing areas have been earmarked In distt: Chitral NWFP. SDA under Joint Venture has signed a MOU for 7500 sq. km of southern part of Chitral for gold and base metals with M/s Toronto International Trade Corporation, Canada. Further nine gold bearing anomalies have been demarcated in district Dir, Swat and Bunair of Malakand Division by SDA. Promotional material in respect of gold need to be prepared for attracting investment.
Chromite 396. Chromite is the only foreign exchange earning metallic mineral particularly
of metallurgical grade. The Muslim Bagh chromite deposits have been and still are the major source of chromite since 1903. NWFP chromite deposits occurring near Malakand and Dargai have been estimated to have 0.7 million tons of deposits that can be upgraded from 28% to 48% Cr2O3 by simple gravity processing in Spirals and Shaking tables. It is suggested that Mobile concentration plants be used for the upgradation of low-grade ores as the chromite deposits are of lenticular shape and widely spread and operated by small mine operators, unable to afford and manage concentration plant.
Gypsum / Anhydrite 397. Pakistan has large deposits of high quality gypsum (5 to 6 billion tons)
available in all the provinces of the country that lend themselves to economic open pit mining methods. Gypsum can be used as soil conditioner for the correction of sodic soils, treatment of low quality tube-wells water, canal and distributaries lining with gypsum, its use as building construction industry and for the production of alpha plaster for its utilization in the manufacturing of medical plaster dentistry and high quality decorative ceramics. The exploitation of gypsum deposits and its utilization would lead to poverty alleviation, development of backward areas, reclaimation of sodic soils and in the construction of low cost cheap houses.
Conclusions and Recommendations
Phosphates 398. Pakistan with a population of about 150 million and a population growith of
about 3 million per year has to face serious challenge to increase food production. Thus agriculture is the principal activity that Pakistan has to pursue through improving wheat and rice yields by adequate use of fertilizers.
399. The country’s present requirements in phosphatic fertilizer (1.5 to 1.6 million
tons/year), by local production (0.7 to 0.75 million tons/year) which means that Pakistan has to import phosphatic fertilizer (about 0.8 to 0.85 million tons/year) and phosphate ore (about 0.3 million tons/year). To lessen the constraints of importing ore and fertilizer, and to keep the chemical fertilizer industry supplied, the development of the country’s phosphate resources has been a priority objective for several years.
400. Among 26 million tons of potential phosphate of Hazara district, low P2O2
phosphates represent substantial reserves (12 million tons) and so constitute ideal raw material for the production of low grade phosphate fertilizer as repeatedly suggested by BRGM of France, leader in the production and utilization of low grade phosphate ores. BRGM of France aimed at manufacturing of phosphatic fertilizer using a technique of Compaction and Granulation of low P2O5 ore of Pakistan. Two main types of products are envisaged. (i) Milled phosphate for direct application (without chemical attack), which
is particularly effective on acid soils. (ii) Milled under – acidulated phosphate (Partial chemical attack), which is
as effective as chemical fertilizer. (iii) In addition, a complete range of composite fertilizer could be produced
by adding raw materials available close to the phosphate deposits: (limestone, magnesite, dolomite, etc). The major advantages of this method of fertilizer manufacture are: development of local resources, saving foreign currency, using simple, cost effective and localized industrial methods resulting in low cost fertilizer and in turn increase in crop yield.
Conclusions and Recommendations
401. It is recommended that BRGM of France or EU may be approached for
acquiring this technology. It is an import substitution project.
Rock Salt for the Production of Quality Iodated Salt 402. Salt is a basic commodity and is used in such a variety of ways that its
enumeration may run into thousands. However, the scope of the topic is restricted to the production of quality iodated salt from rock salt / waste materials of rock salt mines. According to UNICEF, Pakistan has been and still is the worst affectee of Iodine Deficiency Disorder (IDD). Various surveys and studies carried out by national and international experts indicate that substantial portion of the population of Pakistan (50 million and above) is suffering from IDD resulting in mental retardation and physical deformation responsible for socio-economic problems. Further education and literacy becomes meaningless if the mental and physical faculties are not receptive and absorptive. There are diseases and losses of production in farm animals due to deficiency of iodine. For prevention of IDD, the main strategy followed is iodization of salt. However, the efforts done to date in Pakistan are deficient in implementation and quality. This is evident from the report recently published titled “Performance Evaluation of IDD Prevention and Control Programme 2000-01” sponsored by UNICEF and Planning and Development Division Government of Pakistan. One of the conclusions drawn is as under:-
“The problems of quality control is particularly severe in endemic belt area of NWFP, AJK and Northern Areas where the house holds are apparently misled to believe that they are consuming iodated salt”.
403. In Pakistan, rock salt is mainly produced from the SALT RANGE both by the
public and private sectors in sufficient quantities to meet the domestic requirements for human consumption, animal needs and industrial purpose and to export the surplus. Rock Salt so obtained contains impurities such as shale, gypsum, chlorides and sulphates of magnesium and potassium etc. It is crushed/grounded by hundred of chakkies wherein control of quality is rather difficult.
Conclusions and Recommendations
404. In order to provide quality iodated salt, it is suggested that Pakistan Mineral
Development Corporation (PMDC), who operates and produces major share of rock salt, should produce good quality packaged iodated salt. PMDC have all the infrastructure facilities (i.e., electricity, gas, land, water, railways, roads, skilled workers, workshops and management) at all their mines sites. Possibility of producing high quality free flowing, anti-caking iodiate salt from waste materials of Salt Mines (brine, khallar and soor) may be investigated.
Solar Salt Industry 405. Mr. Guy Wilkins, a Consulting Engineer of USA, experienced in setting up
Solar Salt Plants around the world had suggested that tidal island east of Karachi appear to be and ideal location for developing high purity solar salt facility. He is of the opinion that solar salt so produced has export potential to the expanding south east Asia chemical industries and for the growing industries established through out Asia. The GOP may investigate the setting up of Solar Salt Plant in and around Karachi coastal area with the assistance of WB.
Magnesite 406. No basic refractory bricks manufacturing plant exists in Pakistan though
quality magnesite and chromite, the principal raw materials are available in Baluchistan (Muslim Bagh; and Khuzdar) and NWFP (Kumhar; Abbottabad). Hence, all basic refractories bricks used in cement, Pak Steel, steel melters, foundry industries and other heat installation units have been and still are being imported from Japan, Germany, Austria, UK, Spain and other countries costing colossal amount of foreign exchange. Efforts have been made to acquire technology and know how from foreign suppliers for manufacturing basic refractories.
Limestone For Lime 407. Huge quantities (trillions of tons) of high quality limestone deposits are
available throughout the country. Though its uses are diversified as raw material for the construction, agriculture, metallurgical and chemical industries, its main and immediate use should be for the production of
Conclusions and Recommendations
slaked lime. The lime so obtained is used for its application in public health. Lime is very effective and cheap sterilization diminishes vectors of diseases ie Malaria, TB, Hepatitis, etc caused by unhygienic conditions created in villages and slum areas by standing water in ponds and other human, animal and other pollution. Further white washing with slaked lime in rural villages and slum areas creat an impression of cleanliness. Thus the development of lime industry would improve environment, minimize diseases and increase productivity of both human and animals. It is therefore, a requirement that an evaluation study of lime industry in Pakistan, as it stands today and limestone resources need to be inventorized for making viable recommendations.
Kaolin (China Clay) 408. Considering the availability of large deposits of china clay both of primary
and secondary origin, it is necessary to determine its laboratory characterization with a view to identifying their application in various industries; paper filling and coating, ceramics, paints, plastics, rubber, agriculture and pharmaceutical etc. Hence estimation of reserves through geo-scientific survey and confirmation of its quality meeting consumer’s specification is pre-requisite to minimize imports of quality china clay. Accordingly it is recommended that:
i) Geological investigation for the determination of genesis of china clay
formation, its mineralogical, chemical and physical properties may be initiated by the provincial governments of Sindh and NWFP through their mineral development organizations.
ii) Laboratory evaluation and beneficiation trials may be under taken by Glass and Ceramic Section of PCSIR labs Lahore. Their ivestigation may include, amongst others: x-rays diffractometry, thermogravimetry, crystal morphology and small scale beneficiation trials and the analysis of main and subsequent products to determine properties relevant to specific application.
Conclusions and Recommendations
Natural Stones (Dimension Stone) 409. Pakistan has enormous wealth of dimension stones such as onyx, marble of
different shades, granite, diorite, dunite, pyroxenite, tonalite, syenites, serpenites, gabbro, limestone, fossiliferrous limestones, sandstones, magnesium sandstones etc. These materials occur on the surface mostly in accessible areas and therefore lend themselves to economic open cast bulk mining. Pakistan exported less than 10% of the total production of granite/ marble during 2001-2002 valuing at Rs. 296 million that appears to be insufficient when the country is blessed with huge and varied types of natural stones deposits. Moreover marble mining is being done by primitive methods resulting in wastage of natural resource and creating environmental problems. However its present mining and processing infrastructure has the capacity to absorb and develop latest mining and processing technologies. It is suggested that an inventory of all granite/marble/natural stones covering their geological and techno-economic characteristics (reserves, quality, fracture, specific gravity, water absorption, compressive strength, hardness, attractiveness, homogeneity of colour, crystal size, aesthetic aspects, ability to take polish, block/slab size etc) based on available data be prepared. Similarly, a list of machinery (mining and processing) may be obtained from the manufacturers with a view to checking their suitability, usability and applicability in Pakistan. The data so gathered may be compiled, analysed and documented in the form of ‘Promotional Material’ for holding discussion and seminar (s) with prospective investors.
Gemstones- Precious and Semi Precious Stones 410. Geologically, the northern Pakistan consisting of NWFP, NA and AJ&K
represent the most dynamic environment for the formation of precious stores. Pakistan, until a few years ago, unknown in the internationally gem market as a gem producing country, now reported to be sporadically producing about 30 different gems and precious stones besides emeralds and rubies. The precious stones being exploited are emerald, rubies,
Conclusions and Recommendations
tourmaline, topaz, moonstones, epidote, beryl etc. The mining, as mostly happens, is being done by small operators. There are more than 500 units
involved with cutting and polishing. Gem and Gemmological institute has
been established in Peshawar, NWFP to impart training to workers. Keeping in view the advancement of gem related matters in Srilanka, Brazil and Thailand, Pakistan can learn many lessons specially in the exploration, mining, processing, technology, value addition and training.
CONCLUSIONS AND RECOMMENDATIONS 411. Pakistan is richly endowed with a diversity of mineral deposits. Although
many efforts have been made in developing geological, institutional, academic and R&D infrastructure, enough remains to be done to enable mineral sector to take full advantage of its endowment. Security consideration, non-existence of mining tradition and mining experience, inadequate capital resources, risky and complex nature of this industry are disincentives to its development. Sketchy and poor availability of basic information in respect of geo-scientific and technological data comprising topographic maps, aerial photographs, satellite imageries, geological, geochemical and geophysical maps, mineral data base and non availability of information about R&D and support agencies etc. are major factors that has kept and continue to keep mineral sector outside the global mainstream. Further Pakistan mineral industry has not been able to take advantage of advancement in geological knowledge, exploration techniques, mining and processing technologies and changing commodity prices. In order to create a modern industrial state based on our mineral wealth, a strong and ambitious drive has to be developed. Keeping in view the limitation mentioned above, priority need to be focused on the exploration, development and utilization of the TOP 15 Areas/Deposits indicated above. These projects are in different stages of development and need supports from the relevant govt. departments. Geological Survey of Pakistan of Ministry of Petroleum & Natural Resources have prepared and developed Mineral vision 2025, a copy of the same is attached (Table 24). It contains valuable statistical data in respect of projected annual mineral production
Conclusions and Recommendations
(2010) and expected growth pattern of some key indicators of mineral sector of Pakistan for the year 2000 through 2010 to 2025.
412. Further Pakistan Council of Science and Technology of Ministry of Science
and Technology have prepared project proposals of 12 projects estimated to cost Rs. 4.25 billion for the years 2004-2011. Details of the same are given in Table 25. Planning and Development Division, Govt. of Pakistan being the apex body for planning, amongst others, the mineral affairs of the country, may consider all these inputs for projecting the physical targets and financial outlays of various proposed projects. To attract prospective investors, regional and project promotional material need to be prepared and advertised in electronic and print media. This may include but not limited to: i) Geological Maps & Publications; ii) Geochemical and Geophysical Databases; iii) Geo-Services; iv) Mineral Research and Mineral Opportunities; v) Support Departments and R&D Agencies; vi) Guidelines Regarding Fiscal and Regulatory Regimes; and vii) Projects Specific Publications.
413. Considering the vastness and complexity of this sector, the decision makers
have to be advised and guided that a Multi-Disciplinary approach is required for the development of this sector. Accordingly, as recommended by German Consultant hired by ADB vide TA No. 1167 PAK (1993), Group/Committee/Task Force need to be set up. Since one can not assume to find all round expert or institution with detailed knowledge of all applicable processes, it is requirement that a Group comprising the geological, technological, economic and marketing disciplines may be set up.
414. Definite and Specific Term of Reference need to be designed and other
procedural and financial modalities be worked out. It is suggested that technical assistance from donors may be sought for the preparation and circulation of promotional material and setting up Group for handling the mineral affairs of the country in accordance with the requirement of the Constitution of Pakistan (1973) and various elements of National Mineral Policy (1995).
Conclusions and Recommendations
CHAPTER - IX
CONCLUSIONS AND RECOMMENDATIONS 415. Because of favourable geological environment, Pakistan is richly endowed
with the diversity of mineral potential. However, its development remained inadequate and slow because of technical, financial, organizational and other problems inherent in the nature of mineral industry. This is evident from the fact that the sector has been allocated very small amount, which has ranged between 0.45% to 2.46% of the total public sector expenditure since First Five Year Plan reflecting its contribution to GDP that on an average ranges between 0.5% to 1.0%, unchanged over the last many decades.
416. Inspite of all these indigenous and external problems, vigorous efforts have
been and are still being made to built the mineral sector as a potent factor in the national economy. In this context, formulation and announcement of National Mineral Policy (1995), organizational set up, R&D infrastructure, enhancment of training facilities, availability of professional manpower in geo-scientific and technological disciplines, strengthening of Geological Survey of Pakistan etc. are a few strides taken for its systematic enhancement. Further, because of the announcement of an internationally compatible investment friendly National Mineral Policy and availability of physical and human infrastructure, many multinational mining companies have entered into long term agreements. Relevant examples cited are: i) BHP Billiton, Tethyan Copper Company (TCC) and Lake Resources NL of Australia for the development of world class Copper-Gold mineralized region in chagai district, Balochistan; ii) leasing of Saindak Copper-Gold project to Chinese Mining Company; iii) assignment of Duddar Zinc-Lead deposits to a Chinese concern in Balochistan; iv) involvement of Chinese, German and Australian firms in the preparation of feasibility study for the development of ‘Thar coal field – one of the largest good quality lignite deposits in the world; and v) upgradation studies of iron ore deposits of
Conclusions and Recommendations
Dilband area; Balochistan by German Consultants. Given these
advancements, with positive projections as outlinned in this report, under various heading/chapters in the form of summary recommendations, it is hoped that the Mineral Sector would progressively become an important contributor to national development and economy.
Geological Aspects 417. Mineral development companies are risk takers and determined
explortionists. They, as well as others, require access to modern and detailed geological maps and data-base on mineral occurrences. Geological Survey of Pakistan (GSP) is responsible, amongst other tasks, for the study of geology of the country and preparation of geological maps on various scales. It is worrisome situation that GSP could map only 33% area of Pakistan to the scale 1:50,000 so far. Needless to say, availability of thorough knowledge of the geology and mineral potential is an early requirement for attracting local or foreign investors. In order to speed up the production of geological maps on appropriate scale, it is recommended that:
418. A Remote Sensing Centre may be set up at GSP for the speedier and
accurate production of maps. Application of this technology would save time and money through better programming of field trips in the promising areas. For the effective and productive implementation of this facility GSP may associate/consult SUARCO and other organizations. Further Geographic Information System (GIS) may also be launched on parallel grounds.
419. Federal and Provincial public sector mineral development departments,
geological departments of various universities have prepared and published geological maps of the areas falling under their domain. GSP may check the credibility of these maps and wherever necessary, may add it in their inventory giving due recognization to the original authors. It will enhance the status of geological mapping.
Conclusions and Recommendations
PRIORITY REGIONS 420. Geoscientists have identified and demarcated following areas that deserve
major geo-scientific surveys and studies for further evaluation of World Class mineral prospects contained in these regions.
Lasbela Khuzdar Belt 421. This belt extends for hundred of kilometers north of Karachi (Labela) and
upto south of Quetta (Kalat). Several Lead-zinc prospects have been reported near Duddar, Gunga and Surmai. Duddar deposits has been thoroughly investigated establishing 14 million tons of 11% lead plus zinc deposits at 7% cut off grade. The belt hosts ultra-mafic rocks with chromite and Platinum Group Elements (PGE).
Chagai Island Arc 422. This metallogenic province extends over an area of about 30,000 sq. kms
from west (Saindak) to east (Raskoh). It hosts world-class porphyry copper deposits containing gold, silver and molybdenum. Iron ore deposits also occur in this area. TCC, BHP Billiton & Lake Resources NL of Australia are actively engaged in the development of porphyry copper deposits. Saindak copper gold deposits are being operated by a Chinese firm. Dilband iron ore deposits are being evaluated by Bolan Mining Enterprise (BME) with the assistance of German consultants.
Kohistan – Island Arc 423. This includes Northern Areas and NWFP of Pakistan. It hosts gold, precious
stones, platinum, nickel etc. Work carried out by Interantional and national agencies have confirmed the region’s mineral potential.
Indus Basin 424. Indus Basin is the largest and more thoroughly studied basin of Pakistan.
Important minerals in this basin are of sedimentary origin containing rock salt, limestone, dolomite, coal, bauxite, iron ore, gypsum, silica sand, radioactive minerals & various clay. Shield rocks, consists of granite hosts china clay and iron ores.
Conclusions and Recommendations
High Mineral Potential Areas 425. An economic geological study was carried out by German consultants
M/s Grunds Tofftechnik GMBH in association with Preussag Ag Metall – Mine Consultant of Germany hired by Asian Development Bank with a view to identifying the most promising areas for mineral exploration. (1993). Applying modern geological models and concepts and reviewing available field data, the project individualized fourteen metallogenic areas. For detailed information one may refer to the publication, titled “Report on Technical Assistance in planning a National Mineral Exploration Programe (NMEP) for Pakistan- (1993)”. This report is available with GSP.
426. Summarized Version of these Areas giving their locations and mineral
potential is as under: - Area 1: Chilas- Chilas Ultramafic–mafic Rock Complex Chilas Area. Northern Areas, hosts, Pt, Pt-group elements and chromite. Area 2: Jijal- Jijal Ultramafic–mafic Rock Complex Jijal Area.
Northern Areas. Pt, Pt-group elements and chromite occurrences is well exposed between Jilal and Patan, Allai- Kohistan.
Area 3: Sakhakot– Qila- Sakhakot–Qila Ultramafic-mafic Rock Complex,
N.W.F.P, bearing chromite, Pt and Pt-group elements.
Area 4: Hunza - Suture Associated Gemstones Zone. Hunza Northern Areas, ruby-bearing marble zone is present.
Area 5: Swat - Suture Associated Gemstones Zone,NWFP, hosts emerald-bearing belt of talc-chlorite schists. Area 6: Awerith - Polymetallic Mineralization Chitral NWFP, have cluster of Au, Ag, Cu, Pb, Sb, Sn and W.
Area 7: Drosh - Polymetallic Mineralization Chitral NWFP,
contains cluster of Cu, Pb and Sb mineral occurrences.
Conclusions and Recommendations
Area 8: Abbottabad - Precambrain – Paleozoic Tertiary Abbottabad-
Mansehra-Muzafarabad, hosts deposits of phosphates, magnesite, talc, glass sand and bauxite. Further deposits of Au, Ag, Cu, Pb, Mn and Fe do occur.
Area 9: Chiniot - Igneous – Contact Metasomatic Gold Punjab.
These rocks have deposits of gold and iron ores. Area 10: Muslim Bagh - Ultramafic – mafic- Basalt complex Muslimbagh – Zhob valley - Detailed investigation are required for Pt, chromite, magnesite, talc, vermiculite etc. Area 11: Khuzdar - Jurassic Mineralized Carbontes, Khuzdar – Balochistan, hosts Pb-Ag, Zn, Ba and F.
Area 12: Lasbela - Ophiolite Belt, Jurassic Mineralized Carbonates and Tertiary Sediments, Bela- Duddar- Kundi – Balochistan, hosts Cu, Pb-Ag, Zn, Ba, magnesite, talc, bauxite and low-grade phosphates.
Area 13: Chagai Raskoh - Chagai Magmatic Arc, Chagai – Dalbindin,
Balochistan, Cu, Fe+Au, vermiculite and onyx marble deposits. Area 14: Saindak - Saindak Porphyry Copper Area, Saindak – Mashi
chan – Nokkundi, Balochistan, hosts Cu, Au, Mo, Ag, Fe and onyx marble.
427. The German consultants assisted GSP in formulating 10 years National
Mineral Exploration Programme (NMEP), concentrating on high potential areas, that is worth to be mapped, prospected and explored in detail. The consultants had suggested sequence of steps for carrying out these Exploration Projects. The implementation status of NMEP needs to be evaluated. As the NMEP is a BASIC INVESTIGATION PROGRAMME – The First Step for mineral development therefore needs special emphasis and attention for its implementations.
Conclusions and Recommendations
Data Base 428. Reliable and timely information on the mineral potential is essential for
developing conducive investment climate in the mineral sector. A geo-data centre needs to be set up preferably with GSP to provide access to the following materials. Director General Mines and Minerals of NWFP has already taken initiative in this regard. Collaborative efforts need to be made amongst all the mineral related departments, universities and industries.
i) Open File Data – Typically these records include geological maps,
geo-chemical and geophysical surveys information, technical reports and borehole logs.
ii) Mineral Locality Database – This contains synoptic information on all mineral showings, metallic, non-metallic, precious and semi precious gemstones, rare earths and fossil localities.
iii) Mining Data Base – This pertains to the mine-plans of all abandoned mines in the country.
iv) National Core Library – To allow easy access to the library of drill holes held by the Geological Survey of Pakistan.
v) News Letter – Regular publication of news letters devoted to minerals matters including marketing and regulatory condition for the rapid dissemination of relevant informations.
vi) Import-Export Database. Exploration and Evaluation of Mineral Depostis (Guidelines) 429. Presently, mineral exploration, to large extent is in the early stages of first
‘CYCLE’ of modern exploration in which exploration is aimed at the discovery of large outcropping mineral deposits rather than buried or blind deposits which require high technology, high risk and expensive exploration programme. In an industry so vast and so complex, loaded with a number of inherent and indigenous risk factors, it is a requirement that well defined mineral exploration and evaluation operation for each and every mineral deposit should be planned. It is recommended that this programe may include but not limited to the following: -
Conclusions and Recommendations
Technical Studies and Planning 430. This includes literature studies, delineation of prospective zones, selection
of target areas, mode of mineralization etc. Exploration Phase 431. This consists of geological mapping, geo-physical, geo-chemical,
mineralogical, petrological, petrographic, stratigraphic and sedimentological studies, drilling and test mining operation and technological testing.
432. Exploration and Evaluation of Mineral Deposits is a critical and important
phase. Education of geo-scientists, mining engineers, mineral processors, mineral economists, decision makers etc. in this area of activity is essential.
Geo-Science Organizations 433. To make efficient use of trained manpower, sophisticated equipment, testing
instruments and pilot plant facilities available with the geo-science organizations, an inventory of the same has been prepared and documented in this report. The inventory includes data of the Federal Govt. departments (Geological Survey of Pakistan, Pakistan Council of Scientific and Industrial Research Labs, Pakistan Mineral Development Corporation, and Federally Administered Tribal Area Development Corporation) and Provincial Govt. geo-science organizations (Punjab Mineral Development Corporation, Balochistan Development Authority, and Azad Jammu & Kashmir Mineral and Industrial Development Corporation). Awareness about the availability of R&D facilities would help in establishing workable linkages between the mining industry and geo-science organizations. It is therefore recommended that R&D infrastructure should continue to be updated and disseminated for affecting improvement in this sector from exploration to development stage. As recommened by ADB, The R&D infrastructure in connection with the mineral sector must be upgraded, funded and developed. In this context, the facilities available with academia may be inventorized and documented.
Conclusions and Recommendations
National Mineral Policy (NMP) 434. NMP provisions (1995) are adequate and as such, should remain intact
though necessary improvements can be made with a view to making it more investment friendly.
PROJECT PORTFOLIOS OF THE TOP 15 MINERAL DEPOSITS COAL 435. The importance of abundantly available coal in Pakistan as a source of
energy has become all the more important as Hydel Power is on the decline, thermal Power generation is total drain on foreign exchange while gas resources are depleting. In order to fully understand and gauge the full spectrum of coal chain, a multi-disciplinary integrated approach is required. This calls for inputs and services of various disciplines such as: (i) coal mining geologist, (ii) coal petrologist, (iii) coal mining engineer, (iv) coal washer/ processor, (v) coal technologist, (vi) coal mine owners, (vii) pulverised coal injection technology expert, (viii) economist to work out comparative economics of different fuels (furnace oil, gas, bagasse, imported/ local coals, etc., (ix) industrial boiler engineer and boiler fabricator, and x) co-ordinator, capable of understanding the fundamentals of various disciplines and assist in their interfacing for developing coal chain. Fortunately, Pakistan has scientists and technologists of all these disciplines. It is, therefore, recommended that a committee on utilization of coal in industries may be set up under the convenorship of President, Institute of Mining Engineers Pakistan and/or Managing Director, Sindh Coal Authority, consisting of members of above mentioned disciplines. Ministry of Industries and Production through Experts Advisory Cell, being the major beneficiary of coal utilization in industries, may act as lead Ministry for initiating and completing the task for setting up of coal utilization committee.
436. In the same vein, two prong strategy has to be considered and followed for
the exploration, development and utilization of coal.
Conclusions and Recommendations
437. Regarding Thar coal deposits, necessary and relevant studies for
exploration, development and utilization of coal for power generation and gasification have been initiated. It is necessary to keep their developments under constant review.
438. The productivity, production and safety of the existing coal mines can be enhanced by introducing suitable equipment shops in the coal mining areas as spelled out in the Ninth Five Year Plan. In order to fully define this proposal, it is an early requirement that a study may be undertaken to determine potential user requirements, the mechanics involved, cost and funding requirements. The Geological Survey of Pakistan (GSP) should prepare Isopach maps of Lakhra coal field. There are coal seams, namely Dhanwari, Lailian, Katch, L1, L2, L3 and L4. GSP may prepare Isopach maps for I) coal seam thickness, ii) heating value; iii) sulphur percentage v) moisture percentage and v) ash percentage.
439. WAPDA may give electric connection at each coal mine in Lakhra coal field. Without electricity, it will not be possible to mechanize the coal mines or improve safety.
COPPER AND COPPER BEARING GOLD AND SILVER 440. Reco diq Copper Project: Detailed geo-scientific and technological studies
carried out through advanced exploration techniques, quick methods of drilling and in situ extraction of copper by employing bio-leaching, solvent extraction and electro-winning of cathode copper have established, H4 Starter Project, a viable and implementable project. According to initial estimates H4 Starter Project would fetch US$ 75 million per annum and Western porphyry complex, when developed, would bring $ 500 million in foreign exchange per annum during the lives of these mines. The level of confidence achieved has helped H4 Starter Project in its enlistment on the Senior Stock Exchange in Sydney, Australia.
Conclusions and Recommendations
441. This is the first Foreign Investment Project for Mineral Sector in Pakistan
that has invested and intend to invest risk capital for developing projects in the copper-gold mineralization region from grass root to fully developed mines level. In an industry so vast and so complex, loaded with a number of inherent and indigenous risk factors, it is a requirement that the Federal & Provincial Governments and Parties involved to develop mutual respect and trust amongst them. This has become all the more important for Pakistan as it has neither mining tradition and mining experience nor capital resource for the development of its mineral resources. Therefore, It has to look to expatriate mining concerns as potential partners for the development of its metallic mineral resources. In order to educate and train local geo-scientists, mining engineers, mineral processors, mineral economists, decision makers and other targeted audience, it is suggested that TCC management may hold one day seminar highlighting latest techniques deployed in exploration, mining and processing of minerals, with special emphasis on copper-gold projects in Pakistan.
Saindak Copper – Gold Project 442. North ore body adjacent to the presently developed South ore body should be investigated with filled-in drilling for the estimation of proven reserves
and its subsequent development and infrastructure. 443. The capacity of the concentration plant may be increased from12, 500 tons
per day to 15,000 tons per day by mining additional ores from South ore-body for the efficient utilization of concentrator and smelter plants.
444. Low grades ores programmed to be stockpiled may be subjected to “Heap
Leaching” technology for the extraction of additional quantities of copper, gold and silver that will have positive impact on revenue.
445. Sulphur dioxide, on roasting pyrite, may be used for the production of
sulphuric acid. The acid may be used for industrial purposes and partly for leaching of oxidized Saindak copper ore (overburden).
Conclusions and Recommendations
446. The sinter (roasted pyrite) may be blended with magnetite to form pellets
which may be used for production of sponge iron by direct reduction process.
447. Molybdenum recovery plant may be installed at Saindak Mill and the moly
concentrate may be exported. 448. The recovery of gold and silver from Saindak ore is very low. Efforts should
be made to increase the recovery. IRON ORES Kalabagh Iron Ore Deposits, Mianwali, Punjab 449. Due to marked variation in the chemical and mineralogical behaviour of
Chichali, Kalabagh iron ore, it is essential that a Block of 80-100 million tons of iron ores of uniform quality, amenable to concentration may be delineated through geo-scientific and test mining studies. The beneficiated ore so obtained may be blended with appropriate quantity and after sintering may be used as feed for blast furnace.
Nokkundi iron Ore, Chaghi, Baluchistan 450. Beneficiated Iron Ores (+64% iron) have been found technically suitable as
an input for Pak Steel. It may be used for production of sponge iron by direct reduction process. However, economic viability could improve by proving additional 20 million tons suitable for opencast mining. It is recommended that consultants experienced in steel technology including establishment of Mini Steel Plants may be appointed to carry out detailed feasibility study.
Dilband iron ore, Mastung, Balochistan 451. Recent geo-scientific studies have established about 200 Mt of iron ore,
ranging in iron content from 40% to 50%. The deposits have favourable mineralogical composition and are located near to the existing infrastructure making it favourable option for use in Pak-Steel. As the viability of this World Class deposit hinges on the results of beneficiation study awarded to
Conclusions and Recommendations
German consultant, it is suggested that both Govt. of Balochistan and Bolan
Mining Enterprize (BME) may ensure that the study is completed with in the agreed time frame.
LEAD – ZINC ORES 452. A number of sulphide deposits are found in the Jurassic sediments of the
Lasbela-Khuzdar belt of Balochistan. Among the four well known deposits of Surmai, Gunga, Dhungei, Duddar is the most advanced. Detailed geo-scientific studies through mapping and drilling (46000 meters), the total resources and reserves established are 50 million tons and 14 million tons respectively ranging in grade (zinc plus lead) between 11% to 12% at Duddar. Lately this property has been taken over by a Chinese concern. As Lasbela-Khuzdar belt hosts lead-zinc deposits that extends hundreds of kilometer north of Karachi and upto south of Quetta, it deserves a major geochemical survey to compare with the results of air-borne electro-magnetic survey carried out by the Geological Survey of Pakistan.
GOLD - PLACER AND MINERALIZED 453. Locally fabricated machines used by Agha Khan Rural Support Programme
(AKRSP) may be deployed at well identified spots to win gold from the heavy sands of Indus river and its tributories.
454. Modern statistical analysis of the available data is pre-requiste for the
identification of promising areas hosting rocks for gold. This is important as gold mineralization appears to be in several types of host rocks with different genetic environment.
CHROMITE 455. High grade ores (48% Cr2 O3 and above) attracts high market value in
export; therefore, necessary systematic technical audits of chromite ore deposits should be initiated.
Conclusions and Recommendations
456. Install mobile concentration plants to be used for buying the low grades ores
from the small-scale miners at an advantageous price for producing marketable concentrates.
457. Possibility of setting up a ferro-chrome plant need to be investigated. GYPSUM/ ANHYDRITE 458. Pakistan has large deposits of high quality gypsum (5 to 6 billion tons)
available in all the provinces of the country that lend themselves to economic open pit mining method. Large gypsum deposits near Kohat, NWFP and Daudkhel in district Mianwali of Punjab are well connected with the existing infrastructure and utilities. Current uses of gypsum are in cement industry used as retarder and in agriculture sector for the amendment of saline-sodic soils. Summary description of applications of gypsum is mentioned in the following paragraphs.
Gypsum As Soil Conditioner 459. It is an established practice all over the world that saline-sodic soils of
various types can be economically amended with the use of gypsum. In Pakistan, according to various studies and surveys, carried out by national and international experts, have confirmed that more than seven million acres area falling under canal command is sodic and can be corrected with the use of gypsum. Current production of gypsum ranges between 0.5 - 0.6 million tons per annum and its mining is being done by the private sector. According to an estimate, the total gypsum requirement for the reclamation / amelioration of various categories of sodic soils is 50 million tons per annum. This suggests that production of gypsum has to be increased manifolds requiring Herculian efforts. This is possible if a coherent, well planned ACTION PROGRAMME starting from gypsum requirements, its physical and chemical specifications, geological set up of economically viable deposits, their geographical relationship with the place(s) of utilization, mining, transportation is envisaged and implemented.
Conclusions and Recommendations
Gypsum As Corrector of Low Quality Tubewells Water 460. In Pakistan, a number of tube wells are pumping low quality waters,
responsible for making productive lands unproductive. Further it is mixed with canal water and supplied to canal command areas for irrigation making fertile land “Sodic”, unfit for cultivation. This situation can be corrected by treating marginal quality tube wells water containing high sodium content with gypsum.
Canal and Distributories lining with Gypsum 461. In order to avoid seepage of water in canals and improve quality of tube
wells water, possibility of lining of canals and major and minor distributaries with gypsum / anhydrite boulders need to be investigated viz-a-viz other canal lining conventional expensive materials such as clay bricks, cement, stone masonry, etc.
Use of Gypsum for Building Industry 462. Pakistan with a population of 150 million people has no gypsum plaster
industry for construction purposes. However, all over the world, gypsum as gypsum plaster, plaster board, plaster penals and high strength gypsum plaster sand blocks is used. Based on abundantly available, accessible and cheaply exploitable gypsum deposits, it is prudent that application of gypsum plaster sand blocks with gypsum plaster may be considered and initiated for the construction of low cost houses, primary schools and basic health units under various socio-economic programmes. It is to be mentioned here that conversion temperature of making gypsum plaster is 1200C to 1500C, clay bricks 9000C and cement 14500C. It is energy saver. Further high strength gypsum plaster sand blocks are fire resistant, good insulator, cost effective and possesses excellent thermal, acoustical and aesthetic properties.
Alpha Plaster from Gypsum 463. Alpha plaster, a special type of plaster, manufactured from high quality
gypsum is principally used in dentistry, high quality technical and decorative
Conclusions and Recommendations
ceramics and as a medical plaster with bandages for broken limbs etc.
Presently, it is imported. Its manufacturing in Pakistan needs to be initiated. Expected Benefits 464. Poverty alleviation through employment generation in millions, development
of backward areas where gypsum deposits are located, improvement of quality of tube wells water and reclamation of saline sodic soils and that in turn increase in crop production and prosperity of farmers. Further use of gypsum plaster sand blocks would help in the construction of cheap and low cost houses.
PHOSPHATES 465. Among 26 million tons of potential phosphate of Hazara district, low P2O5
phosphates represent substantial reserves (12 million tons) and so constitute ideal raw material for the production of low grade phosphate fertilizer as repeatedly suggested by BRGM of France, leader in the production and utilization of low grade phosphate ores. BRGM of France aimed at manufacturing of phosphatic fertilizer using a technique of Compaction and Granulation of low P2O5 ore of Pakistan. Two main types of products are envisaged.
466. Milled phosphate for direct application (without chemical attack), which is
particularly effective on acid soils. 467. Milled under – acidulated phosphate (Partial chemical attack), which is as
effective as chemical fertilizer. 468. In addition, a complete range of composite fertilizer could be produced by
adding raw materials available close to the phosphate deposits: (limestone, magnesite, dolomite, etc). The major advantages of this method of fertilizer manufacture are: development of local resources, saving foreign currency, using simple, cost effective and localized industrial methods resulting in low cost fertilizer and in turn increase in crop yield.
Conclusions and Recommendations
ROCK SALT 469. Pakistan Mineral Development Corporation (PMDC), who operate and
produce major share of rock salt, should produce good quality packaged iodated salt. PMDC have all the infrastructure facilities (i.e., electricity, gas, land, water, railways, road, skilled workers, workshops, management) at all the mines sites. Possibility of producing high quality free flowing, anticaking iodiated salt from waste materials of salt mines (brine, khallar, and soor) may be investigated.
470. Regarding hundreds of small ground salt producers, scattered all over the
country, it appears prudent to integrate simplest Iodation technology available into the existing system, with as little disruption of habitual salt handling patterns as possible.
471. Impure salt called, “Khallar and Soor” in local parlance may be used for the
production of salt blocks (mineral mixture) for livestock. Views of Pakistan Agricultural Research Council, Animal Sciences Division may be obtained on the subject.
472. In order to check the quality of iodated salt to ensure that it meets food
quality standards, possibility of developing local iodine testing kits be investigated, either by PCSIR labs or NIH Islamabad and given to monitoring teams entrusted with the quality control.
473. Supply of iodated salt by installing crushers at the mine site. This may help
avoiding selling of rock salt in the lumpy form. 474. Study of manufacturing process of free flowing, anticaking, iodated salt by
various countries i.e. China India, Bosnia etc. for the production of crystallized salt should be made to adopt viable procedure such as Dry mixing, Drip feed addition, and spray mixing.
Conclusions and Recommendations
475. Pakistan may immediately obtain technical assistance from the Mining
Institute – Tuzla, Republic of Bosnia and Hezegovian for salt mining and processing. Further specifications and prices of several types of salt iodinization machine available through UNICEF may be obtained.
SOLAR SALT 476. Mr. Guy Wilkins, a Consulting Engineer of USA, experienced in setting up
Solar Salt Plants around the world had suggested that tidal island east of Karachi appear to be and ideal location for developing high purity solar salt facility. He is of the opinion that solar salt so produced has export potential to the expanding south east Asia chemical industries and for the growing industries established through out Asia. The GOP may investigate the setting up of solar salt plant in and around Karachi coastal area.
MAGNESITE 477. Based on a number of studies (marketing, technological and financial), it
has been concluded that refractories with excellent strength under high temperatures, less shrinkage and other general physical properties, meeting ISO 9002 requirements can be manufactured from locally available raw material of Kumhar, Abbottabad area. It is therefore, recommended that the old studies be updated with a view to attracting the interest of investors. As PIDC has abandoned the project in August 2002, Govt. of NWFP/Export Promotion Bureau may under take this task. This is both import substitution and export oriented project. Further it has been proposed that techno-economic studies may be undertaken to determine the feasibility of simultaneously establishing a refractory brick plant using magnesite from Kumhar mines and also a plant to produce a new kind of fertilizer called fused magnesium phosphate (FMP) using low grae phosphate from the Kakul and low grade magnesite from Kumhar mines, both of which have so far remained largely unused.
Conclusions and Recommendations
LIMESTONE FOR LIME 478. Huge market exists for the development of lime industry to improve
environment, minimize diseases and increase productivity. Further it has extensive uses in chemical and metallurgical industries. Based on these requirements, it is recommended that:
479. An evaluation study of lime-industry as it stands in Pakistan to-day, its
production and end uses need to be inventorized; 480. Fine grained, medium to high purity limestones suitable for the manufacture
of lime may be identified through geo-scientific technologies. Limestone with a coarsely crystalline texture generally shows an increased tendency to decrepitate on calcinations compared to fine grained material.
481. Undertake laboratory characterization through the application of X-ray
diffraction, thermogravimetry and thin section studies. 482. All these activities may be undertaken by specialists experienced and
trained in lime- production technology. KAOLIN (CHINA CLAY) 483. Considering the availability of large deposits of kaolin, in Nagar Parkar
(Thar) it is an early requirement to initiate their laboratory evaluation pilot plant studies leading to preparation of feasibility study.
Laboratory Evaluation may cover
i) Mineralogical, chemical and physical characteristics ii) Small scale beneficiation trials; and iii) the analysis of subsequent products to determine properties relevant to
specific applications. Further the crystal morphology of kaolinite has considerable influence on eventual use.
Conclusions and Recommendations
Beneficiation Trials 484. Almost all kaolin deposits require some form of beneficiation in order to
produce marketable product. The type and amount of processing required depends on several factors, including nature of the raw material and specifications of consuming industries.
Feasibility studies 485. Feasibility studies of the above mentioned three Kaolin deposits may be
undertaken covering but not limited to the following: Data collection and review
i) Local data collection and review (labour, legislation, local manufacturers, environment and safety).
ii) Technical data collection and review (local geology, geometry and characteristics of the ore bodies, assessment of the beneficiation tests carried out to-date, review of existing reports)
Preliminary Technical/Economic Studies
i) Collection of representative bulk samples.
ii) Bench scale tests.
iii) Market study.
iv) Based on above, to prepare a development concept covering ore reserves, grades and quality, capacity of the mine, mine to plant transport, techno-economic evaluation.
Detailed Technical Studies (Pilot plant tests, mining and processing parameters, utilities, infrastructure
and environmental considerations) Financial and Economic Evaluations (Capital investment costs and related expenses, production cost, project
financing, financial analysis, sensitivity analysis, socio-economic impact)
Conclusions and Recommendations
486. If the viability of china clay mining and its processing into three marketable
grades: ceramic grade, filler grade and coating grade is established, a large mining cum industrial project can be set up that may offer socio-economic benefits to a large number of people in the under developed regions of Sindh & NWFP. Further, it will have significant impact on national economy and save substantial foreign exchange through import substitution.
NATURAL STONES
487. Geological evidences indicate large deposits of good varieties of color and shades, quality and texture of granites, marbles, onyx and other types of stones of Pakistan. According to one report, India is number four exporter of building stones. However, Pakistan with a little effort can achieve this position if a study with the following Terms of Reference is initiated.
Review 488. To tabulate and inventorize all stones occurrences with their main geological
and mineralogical characteristics.
Geological and Locational Aspects 489. To prepare topogeological maps (!:50,000 scale) showing location of high
quality stones, their geological set up, surroundings, existing infrasture and utilities.
Techno-economic Aspects 490. Collection of samples from the main sites for undertaking specialized testing
keeping in view their techno-economic values including but not limited to the following: i) Degree of fracturation and aesthetic aspect. ii) Access and transportation cost. iii) Identification of main deposits highlighting their reserves, quality
(attractiveness, homogeneity of crystal colour and size) and infrastructure and utilities.
iv) Rough estimation of reserves and mining and processing costs.
Conclusions and Recommendations
v) To obtain opinion of dealers of imported stones in foreign countries about their commercial interest.
GEMSTONES 491. Mining and Marketing of gemstone is notoriously difficult to regulate and
control. The high unit value of the stones and the ease of hiding and transporting even relatively large stones, make the industry very difficult to control. Pakistan is not an exception. The major problems hamper its growth, have been and still are inadequate geological data, non availability of latest technology in exploration, illicit mining and illegal export of Pakistani gemstones, remoteness of majority of gem bearing areas, lack of physical and human infrastructure and other relevant regulatory, fiscal and financial matters. According to one estimate, the cost difference between uncut and cut gemstone is one is to hundred (1:100). Thus much efforts are needed to streamline its growth from technical, financial, commercial and environmental standpoint. The major role is of relevant Federal and Provincial governments, Public sector organizations dealing directly with gemstones operations, professional bodies and associations. In this context, government of NWFP have set up Gem and Gemological Institute for training of cutting and polishing of gemstones to workers. However, these organizations may initiate the basic tasks of geological mapping, application of scientific means and methods of their exploration, mining and beneficiation, establishment of gemological centres, development of viable and implementable financial mechanism, aiming to developing it as cottage, small scale and medium scale industry. Relevant Federal ministry and its departments / bureau may assist and facilitate in the export of natural gemstones as synthetic gems in international market are making it difficult their marketing. Promotional activities are, therefore, pre-requisite for efficient marketing. It is necessary to publish gemstone situation in the renowned gem journals. Export programmes need to be initiated to encourage legitimate flow of gems. Further, Pakistan can learn many lessons from the highly successful Thai, Brazilian and Sri Lankan gem industry, especially in its exploration, mining, processing technology, value addition and training.
Conclusions and Recommendations
THE SALT RANGE, A TREASURE OF TOURISM 492. Based on excellent exposure of more or less complete stratigraphic
sequence (oldest pre-Cambrian to Present series), camping of Alexandar the Great near Jalalpur Sharif in May 326 BC and his war with Raja Porus, setting up laboratories in the Salt Range by a Muslim scientist Al-Baruni for the determination of circumference and center of gravity of earth, existence of a number of temples, stupas, forts, caves, pilgrimage sites, scenic sites and lakes at a number of accessible places and possibility of setting up hospitals and restaurants in the famous Khewra Salt Mines suggest that Salt
Range may be developed from tourism stand point. In this context, following recommendations are made: -
493. Announcement of the Salt Range as international heritage from
Paleontological stand point with a view to attracting technical and financial sponsorship for the establishment of Natural History Museum. Some of the classical stratigraphic sections with relevant rock/mineral samples may be placed on display.
494. Trekking and Pilgrimage tourism to visit scenic sites, muslim, hindus and
buddhist places may be developed. 495. Pakistan Mineral Development Corporation may initiate planning of
constructing hospitals and restaurants in the Khewra salt mines for the treatment of physical ailments as being done in the rock salt mines of Poland.
496. Project profiles of the various viable projects may be prepared and
circulated amongst the potential investors.
Conclusions and Recommendations
PROPOSED MINERAL BASED PROJECTS 497. Literally, thousands of distinctive commodities are produced from minerals.
To attempt to describe each of these industries based on minerals that occur or being produced in Pakistan is an encyclopaedic task. Hence the criteria for the identification of mineral based industries are chiefly their economic viability, chances of exports in raw or processed form, substituting imports or have potential for local consumption with some value-addition. Accordingly, the following mineral based industries for attracting investment on immediate, short-term basis are tabulated. The identification of mineral based projects is based on present knowledge and opinion and should be regarded as exclusive.
Name of
Minerals/Rocks
Proposed Projects
Copper Export potential as blister copper and cathode copper, used as alloys of brass, bronze and copper nickel and copper based chemicals. Exploitation of small copper deposit, for production of copper concentrate and to use it for production of copper based chemicals.
Gold Export, stock piling, Jewellery. Recovery of gold from Indus sand and gold rocks.
Lead and Zinc Ores
To mine and produce concentrates for export till economy of scale permit their local production. Zinc sulphate for rice field and lead for the manufacturing of paints.
Iron Ores Beneficiated iron ores of Dilband; Balochistan and Sargodha; Punjab in the blast furnace of Steel Mills to substitute imports costing billion of rupees per annum.
Chromite Export potential of metallurgical grade chromite. Chemical grade chromite is used for chemical industries and for the production of chromates, di-chromates & chrome pigments. Refractory grade is used as a refractory material for the production of chrome-magnesite basic refractories.
Coal Thermal power generation, brick kiln, cement, sugar and other heat installation units & for the production of smokeless coal for households. Possibility of undertaking studies on coal-water, coal oil slurries for injecting as fuel in industrial & power plants.
Gypsum As amender for saline sodic soils, correction of low quality tube wells water, building material as gypsum plaster and gypsum plaster sand blocks.
Conclusions and Recommendations
Rock Phosphate Phosphatic fertilizers, phosphoric acid, animal feed.
Rock-Salt To produce iodated table salt, mineral mixture for livestock, chemicals like soda ash, caustic soda, sodium sulphide, sodium sulphate etc.
Limestone Slaked lime, cement, steel mills in blast furnaces, building and road material etc.
Magnesite Basic refractories – Import substitution – production of magnesium metal from magnesite.
Gemstones Export potential value addition through cutting and polishing.
Natural Stones. Mainly Building Material.
China Clay (kaolin)
Ceramic plant for pottery and sanitary ware.
Barite Grounded barite is used as a weighting medium in drilling of oil and gas wells. Also used in chemicals, glass and paint industries.
Soapstone (Talc) Cosmetics, paint, ceramic, paper and rubber industry.
Graphite Beneficiation of graphite to produce pencil, crucible, reactor, electrode and foundry grade concentrates.
Manganese Ore Production of battery grade manganese dioxide from indigenous manganese ores and production of potassium permanganate.
498. As recommended by Asian Development Bank Mission in Islamabad, feasibility studies of the projects mentioned above should be carried out in order to ascertain their viability.
PROMOTIONAL MATERIAL
499. To attract prospective investors, regional and project promotional material covering technical aspects need to be prepared and advertised in electronic and print media preferably by BOI in association with M/o Petroleum & Natural Resources This may include but not limited to: (i) geological maps and publications; (ii) geo-chemical and geo-physical database; (iii) geo-services; (iv) mineral research and mineral opportunities; (v) support departments and R&D agencies; (vi) guidelines regarding fiscal and regulartory regimes; (vii) project specific publications. Apart from electronic and print media, it is suggested that documentaries be prepared giving full
Conclusions and Recommendations
spectrum of Pakistan mineral industry and be available on PIA domestic flight, may be sent to Pakistan foreign missions and to the federal and provincial chambers of trade and industry. Typical example showing Geological Survey of Ireland Mineral information material is at Annexure-13. WB / ADB or other donor agencies assistance may be sought for the preparation and circulation of promotional material.
MULTI DISCIPLINARY APPROACH
500. Considering the vastness and complexity of this sector, the decision makers both at national and project levels have to be advised and guided that a multi-disciplinary approach is required for the development of this sector. It is therefore suggested that a committee/Task Force may be set up for handling the minerals affaris of the country in accordance with the requirements of the Constitution of Islamic Republic of Pakistan (1973) and various elements of National Mineral Policy (1995).
PLAN FOR ACTION
501. In order to translate the directives of Minister for Petroleum & Natural Resources and Minister for Industries & Production (copy enclosed) into ACTION PLAN, it is an early requirement that a committee comprising of experts of various disciplines may be set up. In this context definite and specific Term of Reference need to be designed and other procedure and financial modalities be worked out covering the full spectrum of mineral industry including the requirements of small scale mineral industry as spelled out by world bank mineral sector mission and other donor agencies. It is suggested that WB, ADB input/assistance may be sought for the setting up of this committee.
Conclusions and Recommendations
MINERAL SECTOR Latest technology must to explore mineral deposits Minister for Petroleum & Natural Resources, Mr. Nouraiz Shakoor has urged the provinces to come up with recommendations, plans, and projects aiming at fast tract mineral exploration, which is a provincial subject. Addressing a workshop on Mineral Sector Development Consultation on 15th December, 2003 in Islamabad, he said that the Federal agencies generate the basic geological data for identifying the mineral prospects and it is for the provinces to conceive development projects to tap these resources. He hoped that provinces will formulate pragmatic recommendations for the fast track development of this sector and added that the federal institutions have trained human resources for generation of basic geological data and offered all types of assistance to the provinces in this regard. The Minister further said that Pakistan has been endowed with large mineral potential and it is also universally accepted that minerals are generators of economic growth but this vital sector could not be developed in the past and informed that there is hardly five percent contribution to the economy by large deposits of rock salt, coal, and other minerals. He further said that the Saindak Project, with average monthly export of about 3 million dollar, is a clear indicator of mineral sector's potential, which could be the generator of economic growth. Chairing the third session of workshop, Industries and Production Minister Mr. Liaquat Ali Jatoi urged the establishment of mineral export processing zones in mineral rich parts of the country, particularly in Balochistan and Sindh. He said that the government has already created EPZs in the Saindak Copper Gold Project and Reko Diq Copper Project in Balochistan and added that these zones will get the benefit of the package announced by the Prime Minister for encouraging investments in EPZAs. Mr. Jatoi stated that the mineral industry was the backbone of industries in Pakistan as it provided raw material for key industries like steel and cement etc. and there is a great potential in the mineral sector as Pakistan is rich in mineral resources spread all over the country. The Minister emphasized the importance and need of developing indigenous mineral resources to meet the present and ever-increasing demand of the industrial sector and mentioned that minerals were required in various sectors of the economy energy, industrial, building construction or metallurgical sector and cited examples of development of pink granite of Nagar Parkar, Sindh, use of Dilban Pakistan Steel and indigenous coal for power generation and other heat installation units. He informed the participants that the Experts Advisory Cell of the Ministry of Industries and Production was in the process of finalizing study on mineral and mineral-based industry that would be ready by the middle of February, 2004.
CHAPTER - XI
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References
Experts Advisory Cell Ministry of Industries & Production
SEDC Building (STP) 5-A Constitution Avenue, Islamabad
Ph: 9205595-98, Fax: 9202108 E-mail: [email protected]
Website: www.eac.gov.pk
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