KARACHI, Dec 13: Two well known Chinese mining companies — Sinochem Hebi Corporation and Zaozhuang Yongli Chemical company — signed on Wednesday a joint venture agreement to acquire leasing rights for mining and development of celestite mineral in Nooriabad.

Celestite, the Sindh Minister for Mines Irfanullah Marwat, said is a mineral that is found in small quantities and is used in defence-related production processes. The minister was present at the signing ceremony in which the two Chinese companies were represented by Mr Du Hui Bin, director-general of Sinochem Hebei and Mr Zhang Xinqi of Yongli Chemical while Mr Yaqoob represented the Pakistani company, MINRED.

The mining involves investment of 1.8 million dollars. On successful commercial mining, the Chinese plans to set up a plant at a cost of 4.5 million dollars which will produce 50,000 to 300,00 tons of celestite a year. Part of production will be utilised domestically while part of it will be exported.

At present, Pakistan imports about 80,000 to 100,000 tons of celestite every year and domestic exploitation of celestite will provide saving on foreign exchange now being demanded for import, but also will generate foreign exchange earning.

Mr Marwat informed journalists that seven MOUs have been signed for coal based projects and quite a significant headway has been made in ground work for few of these.

Three internationally well known Italian companies have shown interest in commercial exploitation of granite reserves in Thar. There are 25 varieties of minerals in Sindh and each of these has a lot of commercial value.