INTRODUCTION

Pakistan is home to many varieties of minerals, some of which make it prominent in the

mineral world Pakistan is full of significant mineral resources and emerging as a very promising

area for exploration of mineral deposits. Exploration by government agencies as well as by

multinational mining companies and various regional geological surveys, conducted in the recent

past 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 vast

potential of multi- colored granite, marble and other dimensional stones of high quality for

export 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 mining

Mining 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 the

surface, it is mined by surface mining. Minerals that are deeper than 125 feet are removed from

the ground by underground mining.

Current scenario Currently about 52 minerals are under exploitation although on small scale. The major

production is of coal, rock salt, and other industrial and construction minerals. The value

1 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

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 increase

considerably on the development and commercial exploitation of Saindak & Reco Diq copper

deposits, Duddar Zinc lead, Thar coal and Gemstone deposits

Realizing the vast potential of major reserves, there is great opportunity for the multinational

companies to invest in this sector, which will be beneficial for the economy and the investors in

the long run. Further more the exploration of new gold and crud oil fields has got the attention of

many foreign multinational companies who are ready to invest in these sectors resulting in great

development in these areas and solution of many problems of Pakistan most likely of which is

the economic problem

Pakistan - MiningThrough the 1980s, development of mining was discouraged by the absence of venture capital

and the limited demand for many minerals from domestic industries. The slow development of

mining was due in part to the remoteness of the areas where most minerals are found, which adds

greatly to the costs of exploration, production, and transportation. Moreover, some of these areas

have a poor reputation for law and order. By the early 1990s, mining was of little importance to

the economy, despite the presence of fairly extensive mineral resources. Foreign companies have

been 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 good

enough quality for use in the country's steel plant, but in FY 1992 production was only 937,000

tons.

The Saindak Integrated Mineral Project, managed by the state owned Resource Development

Corporation, was developed in the 1980s and early 1990s, but in 1993 there were as yet few

2 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

results. Located in Balochistan, the project area contains three separate large deposits of copper

ore, gold, iron ore, molybdenum, silver, and sulfur.

Scope of mining in Pakistan

Mining is an important industry in Pakistan. Pakistan has deposits of several minerals including

coal, copper, gold, chromites, mineral salt, crude oil, bauxite and several other minerals. There

are also a variety of precious and semi-precious minerals that are also mined. These include

peridot, 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 and

development of the mining industry. Gemstones Corporation of Pakistan looks after the interests

of stake holders in gem stone mining and polishing as an official entity. Baluchistan is the richest

province in terms of mineral resources available in Pakistan. While recently Sindh discovered

coal deposits in Thar. Khyber Pakhtoonkhwa is rich in terms of gems. Most of the mineral gems

found in Pakistan exist here. Apart from oil, gas and some mineral used in nuclear energy

purposes which comes directly under federal control mining of other minerals is provincial issue.

Currently around 52 minerals are mined and processed in Pakistan.

Mineral Salt

Rock salt makes for some beautiful texture on the walls and the

ceiling

Salt is being minned in the region since 320 BC. Khewra Salt

Mines are among world oldest and biggest salt mines. Salt has

been mined at Khewra since 320 BC, in an underground area of

about 110 square kilometres (42 sq mi). Khewra salt mine has estimated total of 220 million

3 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

tonnes of rock salt deposits. The current production from the mine is 325,000 tons salt per

annum.

Copper & Gold

Pakistan has great scope in mining of coppor and gold. A lot of mines of coppor and gold are

found 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 of

170,000 metric tons of copper and 300,000 ounces of gold a year.The project may produce more

than 350,000 tons a year of copper and 900,000 ounces of gold. There are also presence of

copper deposites in Daht -e- Kuhn , Nokundi , Located in Chaghi district.

Iron Ore

Iron ore found in various regions of Pakistan including Nokundi, Chinot and the largest one in

Kalabagh(Less than 42% quality),Harripur and other Northern Areas

Gems and other precious stones

A number of precious stones are mined and polished for local as well as export purposes. The

centre 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 than

200 Million dollar

Coal Mining

Coal which is also named as black gold, has great scope of mining in Pakistan. It is found into

huge quantities in Thar, Chamalang, Quetta and other sites. Thar reserves are estimated 850

4 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

Trillion Cubic Feet. There is enough coal in Pakistan Thar area ( though a part of coal is not of

good quality) that it can be used for power generation for next 100 years without relying on other

i.e. hydro / oil resources.

In March 2010, Engro Chemical announced that the group is investing huge amount of money to

develop coal fields in Pakistan, however exact sum is unknown. The chemical company also

announced to establish energy park in UET Lahore, and start research on In-Situ coal

gasification and high pressure transport gasified.

Coal mining is one of the oldest industries of Pakistan. It assumed new heights in fifties when

cement, fertilizer and other process industries became major users of coal. This led to an increase

in production from 0.7 million tonnes/annum in 1959 to 1.4 million tonnes/annum in 1968. Until

discovery of natural gas, coal was meeting 50 per cent of country's total energy requirement. The

boom in construction activities in eighties provided new impetus and coal production touched

3.14 million tonnes in 1989-90. Since then annual coal production has remained stagnant

between 3.2 to 3.5 million tonnes per annum.

COAL PRODUCTION

(000 tones)

. 1994-

95

1995-

96

1996-

97

1997-

98

1998-

99

1999-

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 3,166

5 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

Mineral exploration schemes under Pakistan mineral

development corporation

Some of the important mineral exploration schemes are given hereunder as:

NWFP

Malakand Chromite Project

Dir-Swat Talc & Fluorite Project

Abrasive Minerals

Lapidary Development Project

Balochistan

Duddar Zinc/ Lead Project

Koh-I-Sultan Sulphur Project

Good Hope Area Coal Exploration

Sindh

Lakhra Coal Exploration & Development Project

Nagar Parker China Clay

Punjab

Exploration of New Salt Areas, Salt Range

Salt Solution Mining Project, Dulmial 6 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

D. G. Khan Iron Ore Project

Khushab Bauxite Project

Azad Kashmir

Mohriwali Graphite Exploration Project

Northern 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. (PMDC's share is

30%)

Exploration & Development of coal deposits in Kurram/Orakzai Agencies in FATA.

(PMDC's 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. 7 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

Exploration and Development of Copper in North Waziristan.

Major Oil Refineries and Their Capacity

Currently 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 economy

8 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

As there are a lot of minerals found in Pakistan so by developing this industry there will be very

positive impacts on the economy. Mining leads to economic expansion and decreasing poverty.

Following are some impacts of mining on the economy of Pakistan

Employment opportunities

Development in mining industry helps to creat new job opportunities in the local areas which

result in decrease in unemployment and and better living standard of people.

Raised demand for goods and services

The raised demand for goods and services makes the economy better. It helps in availability of

goods.

Higher tax income

Government will have higher taxes and there will be more funds for the growth and

development.

Industrial development

The industries related to mining industries will rapidly grow.

Low cost of production

The production cost will decrease and goods and services will be available at cheaper cost.

Problems during mining

9 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

Environmental impact

The presence of impurities and mineral

matters in different minerals leads to the

formation of various pollutants during

exploration having adverse

environmental impacts when emitted

into the atmosphere. The major

environmental aspects that are associated

with use of minerals are: the formation

of pollutants such as fly ash, sulphur

oxides, nitrogen oxides, carbon

monoxide and other mineral matters.

However, the Clean extracting

Technologies have been designed to

enhance the efficiency of production, reduce emissions and waste and make environmentally

acceptable. Therefore, use of mineral resources by utilizing modern technologies does not create

the havoc as it used to create in the past. According to sector experts, most of the equipment

required to facilitate use of minerals can be manufactured locally. As far as the existing

equipments are concerned, these can be modified or the new design that can be manufactured by

HMC and KSEW under licence agreement with the leading manufacturers. If HMC/KSEW

acquire the engineering design, they can supply the same to entire cement industry at competitive

prices.

International concerns

World bank and other institutions relating to the mining industries have many concerns regarding

the ways of mining and the disposal of wastes. As Pakistan lacks the better technology so it is

very difficult for Pakistan to develop this industry.

Accidents in Mining

10 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

Mining in Pakistan is a dangerous job, especially coal mining as safety procedures often

neglected 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.

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 Baluchistan

Lack of Infrastructure

There is no proper infrastructure for mining in Pakistan. There is no proper atmosphere for the

mining. Machines and other instruments are not available. There is also the issue of safety of

workers.

Transportation

There are no proper roads to the area of mining. There is also lack of vehicles. Due to

unavailability of roads and proper vehicles It is very difficult to carry equipments to that place

and to bring the raw material to refineries.

Lack of Technology

All the technology that is used in mining is very old. Using that old technology is very inefficient

it takes a lot of time and lot of hard work, despite of that production remains very low and very

costly.

Lack of interest of government

Government of Pakistan (GoP) is not taking interest in any exploration activity. Government is

not even encouraging the companies who are engaged in this business.

11 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

Lack of Funding

There is shortage of funds for the mining industry. All the allocated funds are not given to the

companies who are working in the mining projects.

Corruption

Corruption is the most important reason of the underdevelopment mining industry. Funds are

providing to companies just in papers. The other thing is that the government is selling the mines

to foreign companies who are deliberately not interested in mining.

SUGGESTIONS

Provision of funds

Government must provide funds to the mining industry. Some companies who are devoted to

their work are extremely facing shortage of funds. As soon as investment will be injected, this

industry will rapidly grow.

Proper auditing

The foreign companies like Australia, Canada and other companies must be properly audited and

checked because they are trying to deceive Pakistan.

Proper infrastructure

12 JUNAID HASSAN SHEIKH MUHAMMAD ALI JUNNAH UNIVERSITY ISLAMABAD

Government must develop proper infrastructure in order to develop mining industry. There is

urgent need to build roads, provide proper technology, provide, vehicles and to provide refineries

to process raw material.

CONCLUSION

Pakistan has great scope in mining industry. If government pays proper attention to this industry

then this industry may provide solution to many problems. Especially in the developing countries

like Pakistan which is full of mineral resources this industry may play a good role in solution to

many problems however government of Pakistan must announce a comprehensive Policy

immediately 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