ISLAMABAD, Oct 2: The Bolan Mining Enterprises (BME) will supply 100,000 tons of iron ore annually to Pakistan Steel (PS).

An inter-ministerial meeting presided over jointly by the ministers for commerce and production and the petroleum and natural resources was held here on Wednesday to finalize the terms and conditions for the sale of indigenous iron ore from Dilband area, district Mastung, Balochistan by BME to PS.

According to an official announcement, the agreement will be executed within one week between PS and BME for the supply of iron ore containing 40 per cent total iron (tfe). BME will also explore possibilities for upgrading of iron ore through beneficiation.

A feasibility study would be initiated soon after signing of the agreement. On the positive results of feasibility study, a beneficiation plant will be commissioned to upgrade the ore from 40 per cent to 65 per cent tfe. This will not only replace the imported ore but would also save precious foreign exchange substantially.

The added benefit will generate a big economic activities in under-developed part of Balochistan leading to a revolutionary change in the socio-economic condition of the population of Dilband. This will also attract foreign investment in the mining sector.

BME is 50:50 joint venture between the Government of Balochistan and Pakistan Petroleum Limited. PPL is the operator of the joint venture. BME has been mining, processing and marketing barites from Khuzdar District since 1976.