Pakistan Petroleum Awarded Lease for Exploring Minerals in Balochistan

Pakistan Petroleum Limited (PPL) has been granted a lease for large-scale mining to explore minerals such as Lead and Zinc in District Khuzdar by the provincial government of Balochistan. According to the stock filing, PPL has informed of the execution of a large-scale mining lease deed of an area covering 30 sq. km (7413.16 acres) and the subsequent establishment of a Lead-Zinc processing plant in District Khuzdar, Balochistan. The lease is valid for the period of 30 years, which will be operated by Bolan Mining Enterprises (BME), a 50:50 joint-venture of PPL and the Government of Balochistan. Balochistan is rich in natural resources, including minerals. The estimated reserves of lease land of baryte, lead, and zinc is 69 million tons as per bankable feasibility by a renowned German Consultant. The project would entail open pit mining with an ore beneficiation/process plant. The company expects positive cashflows from 3 years of commencement of operations, while the estimated project life is 32 years, the filing said. Over the years, Bolan Mining Enterprises (BME) has met nearly 90 percent of the barytes requirement of the oil and gas exploration industry in Pakistan. It also exports barytes powder and lumps/ore to the international market, mainly covering Gulf Cooperation Council countries and saving foreign exchange for the country.