RENEWED efforts are being made by the Punjab government to tap the two-billion-tons iron ore reserves of the province for commercial exploitation.

Expressions of Interest (EOIs) have recently been invited for prequalification of foreign consultants for evaluation of iron ore deposits found in Chiniot and Rajoa areas (district Chiniot), and, separately, for evaluation of reserves of Chichali, near Kalabagh (District Mianwali).

The proposed studies are aimed at ascertaining feasibility for the establishment of small and mini steel mills using the indigenous iron ore.

The country is endowed with large deposits of iron ore, small to medium reserve sizes, which are scattered in its different parts, such as Dilband and Chaghai (Pachinkoh, Chigen-Dik, Chilghazi) in Balochistan province, Makerwal, DG Khan, Chiniot and Kalabagh in Punjab and Nizampur, DI Khan, Abbottabad (Langarial) and Chitral (Drosh) in Khyber Pakhtunkhwa. One of the major national minerals, iron ore reserves amount to more than 920 million tons, out of which 780 million tons are proven reserves.

Still, the current production of iron ore is just about 25,000 tons annually. Economically, iron ore mining is profitable only if the reserves are found in the tens of million tons.

Such categorised proven reserves in Balochistan are of 200 million tons in Dilband, Mastung and 50 million tons in Nokundi (Pachin-koh) that may exceed 100 million tons, according to latest geological and geophysical investigations. Generally, these are medium-grade iron ore containing iron (in the form of iron oxides) in the range of 38—50 per cent.

Iron ore is the raw material used for making pig iron, which is the primary raw material to produce steel. Pakistan Steel Mills, Karachi has recently decided to blend Dilband iron ore with the imported high grade ore, on a small scale, whereas commissioning of a beneficiation plant to upgrade the Dilband ore is being looked into that would result in larger supplies of the indigenous ore to steel mills in future.

In Punjab, vast iron ore reserves are located in Makerwal-Sho, Mianwali (706 million tons), Chiniot, (110 million tons plus anticipated 500 million tons), Chichali, near Kalabagh, Mianwali (369 mn tons) and in DG Khan (268 mn tons). These all are low-grade iron ore, with about 34 per cent iron content.

Most of these reserves are proven and established after extensive exploration and investigations in the area. These potential sources of iron ore have great geological significance and are feasible for use in iron and steel industry. Large scale iron ore mining methodology however is yet to be determined, which depends on mineralogy and geology of the ore deposits.

Iron ore deposits near Chiniot town were discovered in 1989. Subsequently, the Punjab Mineral Development Corporation (PUNJMIN) carried out detailed exploration studies and assessed about 110 million tons of proven deposits. Grade-wise, these deposits are classified as smelting grade 12 million tons, high grade 8 mn tons, medium grade 33 mn tons and low grade 57 mn tons, approximately. A pre-feasibility study done later also declared these reserves to be feasible for use in the steel mills.

In addition, iron ore reserves have been indicated in Rajoa, three kilometer south of Chiniot, having potential of 500 million tons of acceptable grade. Detailed exploration in the 1,000-acre area is to be undertaken to ascertain quantum and quality of Rajoa iron ore reserves. A techno-economic study is to be prepared, in the second phase, to see if establishing a mini steel mill based on Chiniot and Rajoa iron ore would be feasible, which is proposed to be located at mine-mouth using suitable technology.

Chichali/Kalabagh iron ore reserves have long been considered to be suitable for use in steel mills. In 1956, a German group Krupp had proposed to establish, as a joint venture with the Pakistan Industrial Development Corporation (PIDC), a steel mill based on Chichali/Kalabagh iron ore. The project, to produce about 70,000 tons of steel billets annually, was proposed to be located at Piran-Ghaib, Multan. The project did not materialise.

Again, in 1967, another German company Salzgitter offered to establish a steel mill of 0.8 million tons per year capacity based on its own technology, after carrying out comprehensive full-scale industrial tests on the indigenous iron ore that extended over a period of three years or more. This project too did not see light of the day. Since then no plans were ever worked out for exploitation of these iron ore reserves either for use as raw material in the iron and steel industry or for setting up integrated steel mills.

It is hoped that efforts of the government of Punjab would prove to be fruitful in materialising the proposed small/mini steel mills projects in immediate future. Indeed, mining of iron ore and establishing steel mills will stimulate industrialisation process and socio-economic growth. But time is of essence.