akistan has immense mining potential. There is a treasure trove of natural wealth that we have not been able to benefit from.

The province of Balochistan, in particular, is rich in minerals.

Balochistan has a variety of sizeable and valuable minerals deposits, including gold, silver, copper, iron, chromite and lithium in more than 1,600 mines. Currently, there are about 500 coal mines, 600 mining venues of onyx/ marble, 91 mines of iron ore and 550 mines for chromite, antimony, fluoride, granite and gabbro in the province.

Reko Diq and Saindak, both in Chaghi district, have major gold and copper deposits that have attracted worldwide attention. The areas are part of Tethyan magmatic arc that spreads from Western Europe to South East Asia.

The Saindak copper-gold mine is located near the town of Saindak. The deposits at Saindak were discovered in the 1970s in collaboration with a Chinese engineering firm. The Saindak mine has estimated reserves of 412 million tonnes, of which, an estimated 1.69 million tonnes are mineable.

Saindak has a capacity to produce roughly 15,800 tonnes of blister copper, 1.47 tonnes of gold and 2.76 tonnes of silver. The Saindak Copper-Gold Project was set up by Saindak Metals Ltd (SML) in 1995 at a cost of Rs 13.5 billion. The company is owned by the government of Pakistan.

However, the project lay dormant for several years. In 2002, Pakistan and China signed a formal contract to revive the project. The $350 million contract for the development of Saindak copper-gold mine between the SML and China’s MCC Resources Development Company Limited (MRDL) expired in October 2012. It was then extended for five years. In October 2017, it was again extended for five years. On expiry on October 30, 2022, the contract received an extension up to year 2035.

As per agreement, 49 percent of the revenues from the mine go to MCC -Metallurgical Construction Corporation of China, and 51 percent to the government of Balochistan which also receives a 6.5 percent royalty.

Reko Diq is one of the largest copper and gold reserves in the world having estimated reserves of 5.9 billion tonnes of ore grading, 0.41 percent copper and gold reserves amounting to 41.5 million ounces, and a mining life of at least 40 years.

In 1993 Broken Hill Proprietary Company (BHP) of Australia and Balochistan Development Authority (BDA) signed an agreement titled Chaghi Hills Exploration Joint Venture Agreement (CHEJVA). In 2006, Tethyan Copper Company (TCC) acquired the project from Barrick & Antofagasta.

In 2011, the Supreme Court of Pakistan declared the CHEJVA illegal. The government of Balochistan then cancelled the mining lease and the matter went into international litigation. A settlement was reached in 2022. As a result, Barrick Gold acquired the mining leases and exploration licence and has started exploration. The government of Balochistan is to get 33 percent of the financial benefits from the project, estimated at $32 billion over the project life. Apart from the socio-economic uplift in the area, the project is expected to create 8,000 jobs in the development phase and 3,000 in the production phase.

Work for the development of mining and exploration of minerals has started in Balochistan. However, there are several hurdles in the mining sector that should be taken care of. These include lack of first-hand geological data, outstanding dues against the mining companies, poor law and order, incapacitation of expertise and lack of infrastructure in mining areas.

Some mine owners sublet mines to people lacking technical knowledge and local expertise. This slows down the exploration processes. There is a dire need to devise a comprehensive strategy based on modern practices in the mining sector. More large-scale mining should be undertaken instead of focusing on small pockets.

Geological data should be readily available. The government must focus on joint ventures between public and private entities. Data collection too can be outsourced. The mining companies should have clear corporate social responsibility goals that benefit the local population.

Mining sector governance too needs to improve. The companies and contractors that default on their liabilities should lose their permits or pay deterrent fines.

Investment is also required in the development of human capital in the mining sector. Expertise in the procurement of services, evaluation of tenders, contract agreement procedures and exploration is in short supply. This leads to delays and loss of valuable opportunities.

Pakistan has a large youth bulge but has been unable to divert it towards technical education and skill-based training. Interventions like hiring of experts in international law and administration, engineers, geologists, scientists, digital and technical specialists to train local youth can help in bridging the gap.

There is a need also for modern mining legislation. An enabling environment in terms of safety and security for the investors can attract much needed foreign capital.

Pakistan has 16,650 million barrels of oil-equivalent gas reserves worth $14,000 million and 4.4 million tonnes of untapped mineral deposits in the sea. Exploitation of these resources has been held back essentially owing to a lack of reliable resource mapping and reliance on foreign exploration services.

The writer is communication strategist at the Institute of Regional Studies. She can be reached at reema.asim81@gmail.com