Punjab mineral company discovers vast iron, copper reserves

ISLAMABAD: The Punjab Mineral Company has completed the first indigenous exploration project in Pakistan. With an investment of PKR 6.95 billion ($25 million) on exploration, a mining and steel mill can yield metals worth nearly PKR16,680 billion ($60 billion) in 45 years.

Dr. Samar Mubarakmand, head of the Pakistan Mineral Development Corporation (PMC) and a renowned nuclear scientist, revealed these groundbreaking findings in a special meeting. He shared that after obtaining verified documents from laboratories in Germany, Switzerland and Poland, he could confirm these discoveries. According to him, a six-year project in the Chiniot area has uncovered 261.5 million tons of high-quality iron and 36.5 million tons of copper. Ore processing, steel mill and copper refinery will yield 45 million tons of high grade 99.6% pure steel and 1.5 million tons of pure copper metal.

Geologists and geophysicists of PMC jointly with the drilling teams of China & Turkey as well as chemical experts of Switzerland, Poland, Canada and Germany will complete NI 43-101 asset report i.e. a bankable document which would finance the steel mill project. Three hundred million tons of iron ore at Kalabagh can produce high grade steel. Efforts of PMC and German consortium with University of Leoben achieved the breakthrough after 55 years of ore discovery.

The Punjab Mineral Company (PMC) was established around six years ago by the then Chief Minister of Punjab, Mian Shehbaz Sharif. It is currently under the patronship of CM Maryam Nawaz. The ownership of the company lies with the Government of Punjab.

The Chiniot Iron Ore project is a landmark for mineral exploration and resource estimation for Punjab and public sector. At Chiniot, a total of 87 wells aggregating 73,142 meters of drilling and chemical analysis of 27,022 core samples was carried out. This resulted in determination of 261.5 million tons of high-grade iron ore. Approximately, four tons of this ore will produce one ton of pure steel in a steel mill. A one million ton steel mill will process the Chiniot iron ore deposits in approximately 60 years. The exploration has also led to deposits of copper which are higher in concentration than those at Reko Diq.

These copper deposits occurred towards the end in the last 2 or 3 wells. Further drilling effort may yield sizeable and economically minable quantities of copper ore deposits. The initial quantities of copper ore already discovered can yield over 30 million tons of copper ore equivalent to 1.5 million tons of pure copper metal at a present value of PKR 3,961.5 billion ($14.25 billion). Further drilling for copper ore may be undertaken in the next phase of exploration.

A total of PKR 6.95 billion ($25 million) approximately were spent in exploring 28 sq. km of the area. After processing, this 261-million tons of iron ore in a steel mill established at the mouth of the mine, nearly 45 million tons of high-grade steel valued at PKR16,680 billion ($60 billion) can be obtained. In addition, PKR 3,961 billion ($14.25 billion) of copper metal will be obtained from the Chiniot mine. Between 2,000 and 3,000 people would be employed for mining and ore processing. The government may invest its own equity in the project approximated at PKR417 bn ($1.5 billion).