GRANITE
Pakistan, while blessed with enormous wealth of mineral resources, has not been able to commercially exploit most of its reserves optimally, due to a variety of constraints, such as that of infrastructure, technology, skilled workforce and financial resources. The sector has been accorded the lowest priority of the government as the National Mineral Policy 2013 (February) has neither been implemented by the present government nor a revised policy has been announced so far to meet the changing investment dynamics.
In November 2014, the government has simply recapitulated the National Mineral Policy 2013, though without adopting special measures for its development, but with consensus of all provinces and approval of Council of Common Interests (CCI), since constitutionally all minerals, except nuclear substances, are provincial subjects. Besides, strategy has been focused on mining, cutting, polishing and marketing of gemstones with a view to enhance exports, also sponsoring training of locals of gem-bearing areas in gemmology and gemstone mining on scientific lines. Sadly, other important sub-sectors have been ignored, grossly hampering development of the mineral sector, in general.
The government has not even formed a Mineral Investment Board envisaged in the policy as a consultative forum headed by the prime minister. The first-ever National Mineral Policy was introduced in 1995, but it failed to achieve its objectives to exploit marble sector at a large scale, to attract foreign investment and joint ventures, to introduce modern technologies for mining and processing and to promote marketing expertise. Consequently, mineral sector’s contribution to gross domestic product (GDP) remained static during the last two decades at “less than one percent of the GDP”. In fact, it is half percent of the GDP, which is very low compared to other countries rich in mineral resources.
The worldwide demand for dimensional stones, or decorative and building stones, such as marble, granite, onyx, sandstone, limestone, etc, is on the rise as the construction industry grows exponentially.
Current world production and consumption of dimensional stones is about 150 million tons gross, with an estimated production value of $40 billion. In 2014, dimensional stones recorded world trade of 86 million tons at $22.8 billion, whereas the balance quantities were consumed domestically.
There are 12 major countries producing dimensional stones, though reserves are found in other states too. These include, among others, China, US, Italy, Turkey, India and Brazil, while US remains the world’s leading market for dimensional stones. Known as dimensional stones with a long tradition, these are characterised by aesthetics, acoustics and practicality in use. The natural rock materials are selected and fabricated to specific sizes and shapes, primarily in the form of processed or unprocessed blocks, slabs, bricks and tiles. Sadly, Pakistan’s production of dimensional stones is stagnant at around 3.4 million tons for many years. Correspondingly, currently exports of dimensional stones are of $127 million, and contribute insignificantly to global market.
On the other hand, huge and long-term potential for export of these construction stones exists, and export volume to our trade countries can be increased, besides finding new markets. Interestingly, granite is gaining popularity - domestically, regionally as well as internationally, compared to marble.
Use of granite is preferred due to its uniform texture, hardness and ability to withstand weather effects. It is more durable and economical in maintenance as it does not require polishing after installing. Its major applications are in building construction, for external and internal flooring, external and internal facing of residential, commercial and public buildings, particularly in kitchens, washrooms and laboratories. Its other uses are ornamental, monumental and as paving stone.
There are large deposits of granite in Pakistan but have not been specifically investigated countrywide. However, it is preliminary estimated at over two billion tons, with proven reserves of 4,140 million tons. In contrast, average annual production is currently limited to 5,000 tons only. Granite is of good quality, medium to high grade, and in a wide variety, having exceptionally good shades and colours, patterns and grain sizes. It is found in numerous attractive colours such as the most popular jet (absolute) black, the un-usually green, greenish blue, greenish grey, red, gold, Indus gold, yellow, pink, white and the unique white rose.
Availability of large and high quality granite reserves, coupled with its growing demand in the export market make this sub-sector very attractive for investment. Instead of exporting low-value rough and crude granite, value-added finished products and highly processed granite like polished, flamed, honed and antique-polished should be focused on, as these are in high demand abroad. Granite reserves are mostly concentrated in Sindh, located in Nagarparkar, whereas other granite reserves are in Balochistan and Khyber Pakhtunkhwa. Also, Gilgit-Baltistan indicates large quantity and good quality granite of additional 400 million tons reserves.
Nonetheless, the national economy is not yet benefiting properly through exploitation of granite reserves owing to absence of quality considerations and modern practices adopted in the quarrying and processing of the granite. Primitive and outdated methods of quarrying cause low efficiency and heavy waste of material—to the extent of 80 percent. It was only in last November that a black granite quarry in Mansehra District has been mechanised.
Likewise, handling, transport, storing, cutting, sizing, finishing and polishing operations are far from satisfactory. Mostly, locally manufactured processing machinery is being employed in hundreds of units that essentially need modern equipment to meet international standards of quality. Recent advances in granite processing technology, especially developments in diamond sawing and computer control systems, are of great significance and need to be employed.
Concerted efforts are therefore needed by the government to create conducive environment for investment, technological up-gradation of the quarrying process and related industrial units on fast track, and strengthening linkages for effective use of physical resources. In this backdrop, the government has to take policy measures on priority to remove impediments and irritants faced by the sector and to provide incentives to the prospective domestic and foreign investors.
The writer is ex-Chairman of the State Engineering Corporation
