In Islamabad, the government is preparing to establish a specialized Mines and Minerals Division, signaling a concerted push to expedite mining endeavors and bolster Pakistan’s economic growth.
Balochistan, abundant in mineral resources, is currently witnessing concerted efforts to expedite mining operations following an out-of-court settlement with a foreign firm regarding the Reko Diq copper and gold mining project. The CEO of Barrick Gold, based in Toronto, Canada, has been actively engaged, particularly since Shehbaz Sharif assumed office as the Prime Minister.
A recent meeting between the Prime Minister and the CEO in Lahore saw assurances from the government regarding robust security arrangements for initiating mining activities under the Reko Diq project.
Barrick Gold, along with Pakistani companies, is currently endeavoring to secure funds for the project situated in the Chagai area of Balochistan. The government has devised a $1.9 billion funding plan, although the total project funding requirement stands at $4.297 billion.
The project involves a joint venture between Barrick Gold, the Balochistan government, and state-owned enterprises (SOEs) including Pakistan Petroleum Limited, Oil and Gas Development Company, and Government Holdings (Private) Limited.
A feasibility study is currently underway and is expected to conclude by the end of the year. Efforts are also being made to secure foreign financing for the project, with Saudi Arabia expressing interest in participation. Additionally, Pakistan has engaged with Kuwait to establish a $1 billion mining fund, with discussions focusing on cooperation in renewable energy-related minerals mining.
A Memorandum of Understanding (MoU) between Pakistan and Kuwait was signed during a visit by the caretaker Prime Minister last year, emphasizing investment cooperation in water supply projects and mining development in Chagai and surrounding regions.
The Petroleum Division has established a Minerals Cell, while revisions to the National Minerals Policy are underway to attract foreign investment in Balochistan’s mineral-rich province. Further amendments to policy and rules are being considered to facilitate gold and copper mining and attract foreign investors.
A dedicated Mines and Minerals Division is set to be established to address sectoral issues comprehensively. Work is also progressing on the second draft of the National Minerals Policy, along with preparations for updating the Mines Act 1923 and the Provincial Minerals Concession Rules. These measures aim to streamline regulations and promote investment in Pakistan’s mining sector.
