The Pakistan-China agreement on the development of lead and zinc in the province of Balochistan has opened a new era for economic exploitation and utilization of abundant mineral resources on modern lines. The two countries have entered into an accord worth $70 million for the development of lead and zinc deposits.
The central Balochistan mineral belt possesses 24.31 million tons of lead and zinc deposits, mostly in Duddar area of Lasbela district — which is neither far off from Karachi nor from the ECO highway.
Soon after its discovery, in late 90s, by the Geological Survey of Pakistan (GSP), Pasminco of Australia, the PMDC of Pakistan and the BDA of Balochistan signed an exploration agreement to make the use of these deposits. The trio prepared a feasibility report which estimated reserves at 14.31 million tons, having 11.5 per cent combined lead and zinc in Duddar area. But the project made no significant headway, despite $12 million investment. There is another pocket of 10 million tons, lead-zinc deposit at Gunga, Khusdar district along the ECO highway, discovered by the GSP. Though the Balochistan Mining Enterprise (BME), a subsidiary of the Pakistan Petroleum Ltd (PPL) hold the deal but has also not shown any significant progress.
Now China has come out with its own strategy on exploitation of lead and zinc deposits sprawling over the central and northern Balochistan in significant pockets. China’s initial investment of $70 million is designed to develop lead-zinc deposits containing 4.5 per cent zinc and one per cent lead with significant silver values for industrial and chemical production and export. Under this venture, an industrial feasibility study has to be carried out to install a lead-zinc concentration and chemical production plant by using at least 25,000 tons per annum of ore for the manufacture of lead-zinc based chemicals for domestic use and export.
More than 50 metallic and non-metallic minerals have been discovered in Balochistan. Metallic ones are chromite, copper, iron ore, lead and zinc, while the non-metallic include baryte, marble/onyx, gypsum, limestone, coal, dolomite, calcite, silica sand, building and engineering stones.
Out of these only few are mined, processed, produced and exported from Balochistan to domestic and foreign markets. Apart from the lack of enterprise many other factors are coming in the way of mining and processing. Ten such factors are discussed here:
1. Lack of conformity between the Pakistan’s national mineral policy and the Balochistan government’s concessions rules.
2. Refusal of banks and development financial institutions to provide risk capital for exploration.
3. Pressure of tribal demand for substantial shares from the investors.
4. Inadequate security arrangements for field manpower, machinery and money.
5. Lack of physical infrastructure.
6. Lack of access to published technical data.
7. Poor coordination between the regulatory and government departments.
8. Poor general management and lack of motivated personnel.
9. Small uneconomical mines not meeting the economy of scale market or financial criteria.
10. Incompatibility with the modern technique and technology. Lack of integration with downstream demand and international market trend.
Remedial measures: It is imperative to adopt a modern mining strategy. Steps should be taken to promote public and private sectors cooperation with teamwork spirit, resolving obstacles faced by the mining sector. Sustainable mining strategy should be focused on modernizing the provincial mineral directorate with update data on each and every mineral with maps for entrepreneurs.
Tribal and political pressures on entrepreneurs should be resisted by the government with full force at its command so that the mining sector could play its destined role.
Risk capital should be provided for genuine mineral entrepreneurs by banks. Performance of all mining companies should be monitored by scientific methods. Joint ventures between Pakistani mineral entrepreneurs and foreign firms should be encouraged with certain concessions.
Import duties on exploration and mining machinery should be revised and reduced. Taxation regimes for mining should be simplified, under one authority. Railway freight rates should be made more competitive.
Scientific methods should be adopted for the safety of mine workers with medical and educational facilities for them and their family members. Such measures would promote development of mining in mining in Balochistan.