‘Chiniot has 165 million tons iron ore reserves of $4.1 bn’

ISLAMABAD: Pakistan has, in Chiniot-Rajua Saddat, Punjab, iron ore reserves of 165 million tons as per international standard of worth of $4.1 billion enough for 30-40 years’ requirements of the country if a steel mill of one million tones is established there.

The Isopatch Mapping of 28 square kilometres area of Rajua saddat, adjacent to Chiniot city, Punjab, has shown that this area is rich of iron ore reserves of 195 million tones as per the Chinese standard and 165 million tones as per the international standards. The reserves are enough to cater to the needs of the country for 30-40 years if steel mill of one million tons is established there. The steel that will be produced from the said mill will be 20 per cent cheaper if compared with the steel prices in international market, Dr Samar Mubarakmand, Pakistan’s well known nuclear scientist and Chairman of the Punjab Mineral Company told The News.

“Pakistan’s requirement stands at two million tons steel per annum and Chiniot-Rajua Saddat iron ore reserves will cater to 40 per cent needs of the country.” Adjacent to this area, there is another block of 60-70 kilometres having gold and copper reserves, and, under second phase, the tenders for the exact estimation of the reserves of these precious metal will be issued.

“We have handed the documents over to the Punjab Chief Minister, Shahbaz Sharif, about the iron ore reserves estimation after carrying out the isopatch mapping of the said area asking for setting up the steel mill with capacity to produce the steel of one million tons a year,” Mubarakmand said and added, “The iron ore exploration and its reserves estimation process has taken 3-4 years to complete.”

More importantly, we have proposed, Mubarakmand disclosed, the Government of Punjab to establish the steel mill that will use the less electricity and produce one million steel products. And to this effect the coal will be utilised as fuel in the mill and the coal mines have been identified in salt range near Kallar Kahar also situated in Punjab. “We also handed over in the documents the mining method of iron ore with its refining method up to high quality steel.”

Such reserves always happen to be part of iron belt, or copper-gold belt, but interestingly, the area of Rajua saddat is not part of any belt as some million years back, a volcanic eruption caused reserves of iron, copper and gold in this area. The existence of the reserves in this particular area is a local phenomenon.

Mr Mubarakmand also unfolded saying that the belt of copper, iron and gold starts travelling from Xinjiang, China passing through N Waziristan and Balochistan--pockets of Pakistan and then it swings to Afghanistan and this is why the US is not ready to leave the war ravaged country of Afghanistan knowing the fact knows that it has huge reserves of copper, gold and iron.

Mubarakmand, while giving the background of the exploration of the reserves, said that way back in 60s and 70s, it was the Geological Survey of Pakistan which had first identified that this particular area has some reserves of iron and other metals as the mountains in this areas had red stones. Wherever the red stones exist, factually that area is prone to having the minerals reserves. The Punjab Mineral Department also reconfirmed it.

After that, the Punjab CM, he said, had set up a Punjab Mineral Company with Mian Mansha, known towering business tycoon, chairman of its Board of Directors. However, this company failed to issue any tender document. “Then the Punjab government contacted me and made me chairman of the Punjab Mineral Company after that this company started working vigorously on its mission,” said Mubarakmand and added it gave the tenders asking for the bids from whole world for reserves estimation and its isopatch mapping through closed distance drilling process.

The companies from US, China, Australia and Canada have shown keen interest but being the lowest bidder, the Chinese company MMC has been selected for the task through transparent process. The German company also supervised the whole process.