Mineral resources of pakistan

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pakistan is full of natural resources. there is need to pay attention towards it

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Mineral resources of pakistan

  1. 1. INTRODUCTION Pakistan is home to many varieties of minerals, some of which make it prominent in themineral world Pakistan is full of significant mineral resources and emerging as a very promisingarea for exploration of mineral deposits. Exploration by government agencies as well as bymultinational mining companies and various regional geological surveys, conducted in the recentpast have confirmed the great potential of Pakistan in minerals like copper, gold, silver,platinum, chromites, iron, lead zinc and crude oil. As regards industrial minerals there is a vastpotential of multi- colored granite, marble and other dimensional stones of high quality forexport purposes.Defining miningMining may be defined as An excavation made in the earth for the purpose of extracting ores, coal, precious stones, etc.The process of miningMining is the process of removing minerals from the ground. There are two types of mining:underground mining and surface mining. When the minerals are fewer than 125 feet under thesurface, it is mined by surface mining. Minerals that are deeper than 125 feet are removed fromthe ground by underground mining.Current scenario Currently about 52 minerals are under exploitation although on small scale. The majorproduction is of coal, rock salt, and other industrial and construction minerals. The value1 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  2. 2. addition in the mineral sector is mainly concentrated in five principal minerals, namely,limestone, coal, gypsum, sulphur, crude oil, and natural gas.The current contribution of mineral sector to the GDP is about 0.5% and likely to increaseconsiderably on the development and commercial exploitation of Saindak & Reco Diq copperdeposits, Duddar Zinc lead, Thar coal and Gemstone depositsRealizing the vast potential of major reserves, there is great opportunity for the multinationalcompanies to invest in this sector, which will be beneficial for the economy and the investors inthe long run. Further more the exploration of new gold and crud oil fields has got the attention ofmany foreign multinational companies who are ready to invest in these sectors resulting in greatdevelopment in these areas and solution of many problems of Pakistan most likely of which isthe economic problemPakistan - MiningThrough the 1980s, development of mining was discouraged by the absence of venture capitaland the limited demand for many minerals from domestic industries. The slow development ofmining was due in part to the remoteness of the areas where most minerals are found, which addsgreatly to the costs of exploration, production, and transportation. Moreover, some of these areashave a poor reputation for law and order. By the early 1990s, mining was of little importance tothe economy, despite the presence of fairly extensive mineral resources. Foreign companies havebeen invited to bid for concessions for mineral extraction.Minerals include antimony, bauxite, chromite, copper, gypsum, iron ore, limestone, magnetite,marble, molybdenum, rock salt, and sulfur. Much of the mineral wealth is found in Balochistan.In FY 1992, mineral production included 8.5 million tons of limestone, 833,000 tons of rock salt,471,000 tons of gypsum, and 6,333 tons of magnesite. Some iron-ore deposits are of goodenough quality for use in the countrys steel plant, but in FY 1992 production was only 937,000tons.The Saindak Integrated Mineral Project, managed by the state owned Resource DevelopmentCorporation, was developed in the 1980s and early 1990s, but in 1993 there were as yet few2 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  3. 3. results. Located in Balochistan, the project area contains three separate large deposits of copperore, gold, iron ore, molybdenum, silver, and sulfur.Scope of mining in PakistanMining is an important industry in Pakistan. Pakistan has deposits of several minerals includingcoal, copper, gold, chromites, mineral salt, crude oil, bauxite and several other minerals. Thereare also a variety of precious and semi-precious minerals that are also mined. These includeperidot, aquamarine, topaz, ruby, emerald, rare-earth minerals bastnaesite and xenotime, sphene,tourmaline, and many varieties and types of quartz.The Pakistan Mineral Development Corporation is the responsible authority for the support anddevelopment of the mining industry. Gemstones Corporation of Pakistan looks after the interestsof stake holders in gem stone mining and polishing as an official entity. Baluchistan is the richestprovince in terms of mineral resources available in Pakistan. While recently Sindh discoveredcoal deposits in Thar. Khyber Pakhtoonkhwa is rich in terms of gems. Most of the mineral gemsfound in Pakistan exist here. Apart from oil, gas and some mineral used in nuclear energypurposes which comes directly under federal control mining of other minerals is provincial issue.Currently around 52 minerals are mined and processed in Pakistan.Mineral SaltRock salt makes for some beautiful texture on the walls and theceilingSalt is being minned in the region since 320 BC. Khewra SaltMines are among world oldest and biggest salt mines. Salt hasbeen mined at Khewra since 320 BC, in an underground areaof about 110 square kilometres (42 sq mi). Khewra salt mine has estimated total of 220 milliontonnes of rock salt deposits. The current production from the mine is 325,000 tons salt perannum.3 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  4. 4. Copper & GoldPakistan has great scope in mining of coppor and gold. A lot of mines of coppor and gold arefound in Baluchistan. In Reqo Diq, Baluchistan deposits of copper and gold are present.Antofagasta the company having possession of Reqo Diq field is targeting initial production of170,000 metric tons of copper and 300,000 ounces of gold a year.The project may produce morethan 350,000 tons a year of copper and 900,000 ounces of gold. There are also presence ofcopper deposites in Daht -e- Kuhn , Nokundi , Located in Chaghi district.Iron OreIron ore found in various regions of Pakistan including Nokundi, Chinot and the largest one inKalabagh(Less than 42% quality),Harripur and other Northern AreasGems and other precious stonesA number of precious stones are mined and polished for local as well as export purposes. Thecentre point of this operation is Khyber-Pakhtoonkhwa. These includes Actinolite, Hessonite,Rodingite, Agate, Idocrase, Rutile, Aquamarine, Jadeite, Ruby, Amazonite, Kunzite, Serpentine,Azurite, Kyanite, Spessartine (garnet), Beryl, Marganite, Spinel, Emerald, Moonstone, Topaz,Epidote, Pargasite, Tourmaline, Garnet (alamandine), Peridot, Turquoise, Garnet (green,grossular), Quartz (citrin & others) and Vesuvianite. The export from these gems is more than200 Million dollarCoal MiningCoal which is also named as black gold, has great scope of mining in Pakistan. It is found intohuge quantities in Thar, Chamalang, Quetta and other sites. Thar reserves are estimated 850Trillion Cubic Feet. There is enough coal in Pakistan Thar area ( though a part of coal is not ofgood quality) that it can be used for power generation for next 100 years without relying on otheri.e. hydro / oil resources.4 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  5. 5. In March 2010, Engro Chemical announced that the group is investing huge amount of money todevelop coal fields in Pakistan, however exact sum is unknown. The chemical company alsoannounced to establish energy park in UET Lahore, and start research on In-Situ coalgasification and high pressure transport gasified.Coal mining is one of the oldest industries of Pakistan. It assumed new heights in fifties whencement, fertilizer and other process industries became major users of coal. This led to an increasein production from 0.7 million tonnes/annum in 1959 to 1.4 million tonnes/annum in 1968. Untildiscovery of natural gas, coal was meeting 50 per cent of countrys total energy requirement. Theboom in construction activities in eighties provided new impetus and coal production touched3.14 million tonnes in 1989-90. Since then annual coal production has remained stagnantbetween 3.2 to 3.5 million tonnes per annum. COAL PRODUCTION (000 tones) . 1994- 1995- 1996- 1997- 1998- 1999- 95 96 97 98 99 00 Balochistan 1,565 1,798 1,828 1,574 1,671 1,681 Punjab 413 515 425 366 479 454 Sindh 1,023 1,278 1,238 1,165 1,250 985 NWFP 42 47 62 54 61 46 Total 3,043 3,638 3,553 3,159 3,461 3,1665 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  6. 6. Mineral exploration schemes under Pakistan mineraldevelopment corporationSome of the important mineral exploration schemes are given hereunder as:NWFP Malakand Chromite Project Dir-Swat Talc & Fluorite Project Abrasive Minerals Lapidary Development ProjectBalochistan Duddar Zinc/ Lead Project Koh-I-Sultan Sulphur Project Good Hope Area Coal ExplorationSindh Lakhra Coal Exploration & Development Project Nagar Parker China ClayPunjab Exploration of New Salt Areas, Salt Range Salt Solution Mining Project, Dulmial D. G. Khan Iron Ore Project Khushab Bauxite Project6 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  7. 7. Azad Kashmir Mohriwali Graphite Exploration ProjectNorthern Areas Indus Sand Gold Project Hunza Ruby Project Gold and Base Base metal Geochemical Exploration, Northern Areas.Joint Ventures PMDC has a joint venture with Sarhad Development Authority of the NWF Provincial Government to exploit Rock Salt resources at Nari Poono, Distt. Kohat with its stake as 49%. PMDC is a major stake holder (50%) in Lakhra Coal Development Company (LCDC) with Government of Sindh (25%) and WAPDA (25%). PMDC has signed an MoU with Metallurgical Construction Corporation of China (MCC) to develop Duddar Lead/ Zinc Project. Exploration & Development if Soapstone in Kurram Agency, FATA. (PMDCs share is 30%) Exploration & Development of coal deposits in Kurram/Orakzai Agencies in FATA.(PMDCs share is 51%)Projects Sponsored by FATA Development Authority and being executed by PMDC: Exploration & Resource estimation for Coal Sherani Area, F.K.D.I Khan. Exploration and Development of Copper in North Waziristan.7 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  8. 8. Major Oil Refineries and Their CapacityCurrently there are about five major refineries operating in Pakistan, which are explained below: - Pak. Arab Refinery (PARCO) with refining capacity of 4.50 MTO (2005-06); - Attock Refinery (ARL) with refining capacity of 1.80 MTO (2005-06); - National Refinery (NRL) with refining capacity of 2.70 MTO (2005-06); - Bosicor Pakistan Limited (BPL) with refining capacity of 1.50 MTO (2005-06); - Pakistan Refinery Limited (PRL) with refining capacity of 2.20 MTO (2005-06); - Dhodak Refinery Limited (DRL) with refining capacity of 0.12 MTO (2005-06).Impact of mining on the economyAs there are a lot of minerals found in Pakistan so by developing this industry there will be verypositive impacts on the economy. Mining leads to economic expansion and decreasing poverty.Following are some impacts of mining on the economy of Pakistan8 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  9. 9. Employment opportunitiesDevelopment in mining industry helps to creat new job opportunities in the local areas whichresult in decrease in unemployment and and better living standard of people.Raised demand for goods and servicesThe raised demand for goods and services makes the economy better. It helps in availability ofgoods.Higher tax incomeGovernment will have higher taxes and there will be more funds for the growth anddevelopment.Industrial developmentThe industries related to mining industries will rapidly grow.Low cost of productionThe production cost will decrease and goods and services will be available at cheaper cost.Problems during miningEnvironmental impactThe presence of impurities and mineral matters in different minerals leads to the formation ofvarious pollutants during exploration having adverse environmental impacts when emitted into9 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  10. 10. the atmosphere. The majorenvironmental aspects that areassociated with use of minerals are: theformation of pollutants such as fly ash,sulphur oxides, nitrogen oxides, carbonmonoxide and other mineral matters.However, the Clean extractingTechnologies have been designed toenhance the efficiency of production,reduce emissions and waste and makeenvironmentally acceptable. Therefore,use of mineral resources by utilizingmodern technologies does not create thehavoc as it used to create in the past. According to sector experts, most of the equipment requiredto facilitate use of minerals can be manufactured locally. As far as the existing equipments areconcerned, these can be modified or the new design that can be manufactured by HMC andKSEW under licence agreement with the leading manufacturers. If HMC/KSEW acquire theengineering design, they can supply the same to entire cement industry at competitive prices.International concernsWorld bank and other institutions relating to the mining industries have many concerns regardingthe ways of mining and the disposal of wastes. As Pakistan lacks the better technology so it isvery difficult for Pakistan to develop this industry.Accidents in MiningMining in Pakistan is a dangerous job, especially coal mining as safety procedures oftenneglected and accidendts are quiet common.On 21st of March 2011 atleast 45 miners died due to an explosion in a coal mine in Surran range,some 35 km (22 mi) east of the provincial capital, Quetta.10 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  11. 11. On 14 of Febeuaray 2011, 2 Chinese engineers die in a chromite mine collapse in Qila Saifullah, Pakistan On 27th of May 2004, 15 miners died after a gas explosion at a coal mine in BaluchistanLack of InfrastructureThere is no proper infrastructure for mining in Pakistan. There is no proper atmosphere for themining. Machines and other instruments are not available. There is also the issue of safety ofworkers.TransportationThere are no proper roads to the area of mining. There is also lack of vehicles. Due tounavailability of roads and proper vehicles It is very difficult to carry equipments to that placeand to bring the raw material to refineries.Lack of TechnologyAll the technology that is used in mining is very old. Using that old technology is very inefficientit takes a lot of time and lot of hard work, despite of that production remains very low and verycostly.Lack of interest of governmentGovernment of Pakistan (GoP) is not taking interest in any exploration activity. Government isnot even encouraging the companies who are engaged in this business.Lack of FundingThere is shortage of funds for the mining industry. All the allocated funds are not given to thecompanies who are working in the mining projects.11 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  12. 12. CorruptionCorruption is the most important reason of the underdevelopment mining industry. Funds areproviding to companies just in papers. The other thing is that the government is selling the minesto foreign companies who are deliberately not interested in mining.SUGGESTIONSProvision of fundsGovernment must provide funds to the mining industry. Some companies who are devoted totheir work are extremely facing shortage of funds. As soon as investment will be injected, thisindustry will rapidly grow.Proper auditingThe foreign companies like Australia, Canada and other companies must be properly audited andchecked because they are trying to deceive Pakistan.Proper infrastructureGovernment must develop proper infrastructure in order to develop mining industry. There isurgent need to build roads, provide proper technology, provide, vehicles and to provide refineriesto process raw material.12 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD
  13. 13. CONCLUSIONPakistan has great scope in mining industry. If government pays proper attention to this industrythen this industry may provide solution to many problems. Especially in the developing countrieslike Pakistan which is full of mineral resources this industry may play a good role in solution tomany problems however government of Pakistan must announce a comprehensive Policyimmediately to support this industry. There must be Duty free import of required plant and machinery Establishment of processing and distribution companies Allocation of funds for upgrading infrastructure Allocation of special funds for exploitation Manufacturing machineries and other tools locally. If these measures will be taken this industry will definitely grow and will prove fruitful.13 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

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