ISLAMABAD, Nov 7: The Minister for Petroleum and Natural Resources informed the National Assembly on Saturday that a feasibility study was being prepared for a project in Balochistan expected to produce 72,000 tons of copper concentrate.

In a written reply, Syed Naveed Qamar said that a joint venture of two foreign companies, M/s Antofagasta and M/s Barrack Gold of Canada (M/s Tethyan Copper Company), was preparing the report on mining and processing of Reko-Diq deposits in the initial stage by investing $1 billion.

He said the federal and Balochistan governments were providing assistance to the companies.

The copper-gold-silver deposits are being exploited with cooperation of international companies which have investments and expertise to extract ores.

The National Assembly was informed that the Saindak project, operated by Chinese Company M/s MCC, had been producing 16,000 tons of copper, gold and silver per year since 2003.

Mr Qamar said the National Mineral Policy of 1995, formulated by the previous PPP government, had enhanced the country’s international competitiveness because of attractive regulatory and fiscal regime.

As a result, the mineral sector has secured direct foreign investment of $800 million and augmented revenue receipts from the mineral sector.

The private sector has been allowed to import coal-washing plants to improve quality of Thar coal for processing industry.

He said that Pakistan had iron resources of more than 600 million tons, but due to its low grade it could not be utilised by Pakistan Steel, which was importing iron ore by spending huge foreign exchange.

Mr Qamar said the government had given high priority to utilising indigenous iron resources and Pakistan Steel had been facilitated in acquiring three leases of iron mines in Balochistan and efforts were under way to develop a mechanism for upgradation of indigenous iron resources for utilisation in Pakistan Steel.

In this regard, the ministry of petroleum has conducted a feasibility study on upgradation of Chichali iron ore through Chinese Company M/s MCC.

The minister said that around 175 billion tons of coal reserves had been discovered in Thar that had the potential to fulfil energy requirements of the country.
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