PPL Signs New Deal to Mine Baryte, Lead and Zinc in Balochistan

Pakistan Petroleum Limited (PPL) has executed Amendment No. 1 to the Operating Agreement originally dated November 15, 2004, with the Government of Balochistan (GoB), expanding the scope of their joint venture Baryte, Lead, and Zinc (BLZ) Project. Under the amendment, the area under Mining Lease No. 16, granted in December 2021 in District Khuzdar for Lead and Zinc, has been incorporated into the existing agreement for the Barytes Project in Gunga, PPL informed the main bourse on Thursday. The revised arrangement designates Balochistan Minerals Exploration Company (BME), a GoB entity, as the Operator of the expanded BLZ Project. The agreement also emphasizes employment preference for local residents. Funding responsibilities will be shared by PPL and the Balochistan government according to their equity stakes. PPL will finance its share through internal cash flows, while the provincial government will contribute via a financing arrangement. A Bankable Feasibility Study, conducted by DMT (Germany) in 2019, supports the viability of the project. Currently in the development phase, the BLZ Project is expected to generate average annual revenues of $144 million, with a net present value of $356 million over an estimated 32-year project life.