Pakistan has fairly large mineral resources ranging from metallic, non-metallic, fossil fuels and precious gemstones. At the time of independence, only six mineral commodities including chromite, coal, sulphur, gypsum, limestone and rock salt were mined in an appreciable quantity in Pakistan. Currently, medium to large scale production of over fifty mineral commodities is being done.
Metallic and Non-metallic Minerals Found in Pakistan
Metallic Minerals. Metallic minerals are composed of one or more metallic elements, possess thermal and electrical conduction properties and are economically valuable.
▪ Chromite. A white colored metal used for making steel, dyes, photography items and airplane frames. Estimated chromite ore deposits are over 2.572 million tonnes with annual production around 237,000 metric tonnes.1 As per the Ministry of Energy, Pakistan has one of the world's largest reserves of chromite mostly found in Muslim Bagh, Chagai, Kharan, Malakand and North Waziristan. Most of the extracted chromite in the country is exported to developed countries.2
▪ Copper and Gold. Electrical equipment, construction and manufacturing of industrial material largely consumes copper. Pakistan’s largest copper and gold reserves are found in Chagai Distict of Balochistan (Saindak and Reko Diq). Reko Diq reserves, comprising copper bearing gold, contain 0.29 gms/tonnes of gold. Therefore, based on gold to copper ratio, it is amongst the top five global gold deposits.3
▪ Iron. Iron ore is used for steel and iron manufacturing. Current estimated reserves of iron ore are 1,400 million tonnes with annual production of around 600,000 metric tonnes.4 The largest deposits of iron ore are found in Kalabagh. Recently discovered iron ore deposits by Geological Survey of Pakistan (GSP) at Dilband in Kalat, Uthal in Lasbela and Nizampur in Khyber Pakhtunkhwa are of great economic significance.
▪ Lead and Zinc. Lead is primarily used in the manufacturing of lead acid batteries, lead foil, plumbing, sound proofing, ammunition and computer screens; whereas, Zinc being the third most used non-ferrous5 metal after aluminum and copper is used for steel galvanizing, fertilizers, batteries, paints, cosmetics, plastics, rubbers, ointments and soaps. Present estimated available ore, in the country is over 23 million tonnes.6 Duddar mine (Balochistan) is one of the largest lead and zinc mines in Pakistan.
▪ Antimony. Estimated deposits of antimony are 86,000 tonnes,7 but detailed exploration may prove more quantity.
Non-Metallic Minerals. Non-metallic minerals consist of chemical elements that don’t usually feature the properties of metals; weak electrical conductors and economically less valuable except power resources like oil, gas and coal.8
▪ Barites. Barium minerals possess high specific gravity suitable for oil drilling, x-ray shielding and manufacturing of paints and papers.9 Estimated reserves are 13.71 million tonnes10 and domestic annual production of barites is around 220,000 metric tonnes.11 Barites deposits were discovered by GSP in 1967; most of the deposits are located in Balochistan and indigenous production is adequate to meet the requirements for oil well drilling and barium-based chemical plants.
▪ China Clay. Soft white clay is mainly used in ceramic industry.12 Clay deposits were discovered by GSP in KP and Sindh in 1975 and 1973 respectively. Annual production of China clay in Pakistan is about 20,000 metric tonnes.13
▪ Feldspar. A large group of rocks forming silicate minerals that make up over 50 percent of earth’s crust, mainly used in industry for manufacturing glass and ceramic products, fillers in paints, plastics and rubbers.14 Domestic yearly production is around 40,000 metric tonnes.15 Large deposits of feldspars are available in KP, Chitral, Sindh and Northern Areas.
▪ Fuller’s Earth. It is used in oil refining and other industries like insecticides, vegetable oil, ghee and steel industries. Most of the Fuller’s Earth deposits are found in Punjab and Sindh with annual production of around 9,000 metric tonnes.16
▪ Fireclay. It is also referred as refractory clay (can be fired to high temperature without deforming or melting), mainly used for furnace lining in cement and other industries like bricks, ceramics, tiles, sculpture and pottery. Total reserves of fireclay is over 100 million tonnes and domestic production during the year 2017-18 was more than 838,000 metric tonnes.17 Sizable deposits of fireclay are found in Punjab, which is the main fireclay consumer.
▪Silica Sand/Glass Sand. Glass sand is used for road surfaces while Silica sand is used for manufacturing glass, paints, construction material and sports/golf fields. Total reserves of Silica Sand in Pakistan are estimated to be 557 million tonnes and domestic production during the year 2017-18 was more than 367,000 metric tonnes.18
▪ Gypsum and Anhydrite. Gypsum is used for cement, plaster of Paris, soil conditioning and decorative purposes. Anhydrite can be used as a substitute or in combination with gypsum for the abovementioned uses. Presently, estimated gypsum reserves are over 4,850 million tonnes. Domestic production of gypsum during the year 2017-18 was more than 2.5 million tonnes.19
▪ Magnesite. It is suitable for the production of refractory bricks and fused magnesium phosphate. The magnesite resources in Pakistan have been estimated at 12 million tonnes. Domestic yearly production is around 19,000 metric tonnes (2017-18).20
▪ Rock Salt. 40 percent of the total output is consumed by soda ash, caustic soda and leather industries while the remaining amount is marketed for domestic consumption. The domestic annual production of rock salt is around 3.7 million tonnes.21 Exploration and evaluation of these deposits by GSP has proved the existence of inexhaustible reserves of rock salt in Salt Range.
▪ Soapstone. Due to its thermal and fire-resistant properties, it is widely used in architectural applications. The domestic annual production of soapstone is more than 138,000 metric tonnes22 (2017-18). Sherwan deposit in Abbottabad is the major producer of soapstone in Pakistan. The overall estimation of soapstone production has not been worked out, but it is believed that huge untapped resource is available.
▪ Solid Fuel–Coal. As per estimation by GSP, more than 186 billion tonnes23 reserves are present in Pakistan, the largest being in Sindh at an estimated 185 billion tonnes.24 The annual production of indigenous coal in the country is expected to exceed 7.00 million tonnes in the coming years.25 Almost entire indigenous coal production is being used for firing brick kilns and by some industrial units. Three coal fired power plants of 50MW capacity, each based on fluidized bed technology, have been set up at Khanot near Hyderabad. Two Thar coal powered generation units with capacity of 330 MW each are also functional.
▪ Gems and Precious Stones. Mainly these deposits are found in KP, G.B and AJK.
Untapped Mineral Resources of Pakistan
No official data is available regarding Pakistan’s untapped mineral potential; however, open source research suggests the presence of untapped or unmeasured resources across the entire Pakistan.
▪ Gilgit-Baltistan. The estimated number of locations for the presence of gold and copper are 168 and 493 respectively. Furthermore, the presence of gold particles along River Indus bank is known since ages and the same is collected by the local gold washers. In addition, deposits of granite, white marble and rare/expensive metal named ‘Chevkinite’26 is also estimated to be present in Gilgit-Baltistan.
▪ Sindh. The full potential of coal reserves in Sindh is yet to be tapped. It is estimated to be beyond 2.93 billion tonnes. In addition to Thar, the estimated coal fields are located in Thatta, Jherrruk and Indus East.
▪ Balochistan. The world’s biggest gold and copper reserves are located at Reko Diq with an estimated resource of 5.9 billion tonnes in Chaghai district that remains unexplored.
▪ Punjab. Geological Survey depicts inexhaustible deposits of rock salt in Salt Range.
▪ Khyber Pakhtunkhwa. 81 million tonnes of untapped coal is estimated in Hangu and marble deposits in Mohmand district are also unexplored to date.
Mineral Development Challenges and the Way Forward
Development Challenges. Pakistan is endowed with huge reserves of minerals covering an outcrop area of 600,000 sq. kms. There are 92 known minerals out of which 52 are commercially exploited with a total production of 68.52 million metric tons per year. Despite huge potential, the contribution of mineral sector to Pakistan’s GDP is around 3 percent and the country’s exports are only about 0.1 percent of the world’s total.27 The various contributing factors or impediments are mentioned below:
▪ Lack of Investor Confidence. With arbitration, lease conflicts and inconsistent policies, lack of confidence exists among the local and global mining companies and investors.
▪ Lack of Exploration and Marketing. Limited, outdated or no exploration data is available for mining companies to evaluate large scale mining (LSM) projects. Besides that, no marketing efforts have been made.
▪ Missing Regulatory Framework. Regulatory framework has missing links between the national mineral policy and provincial mining policies, resulting in procedural delays, creating hurdles for investors, particularly the foreign investors.
▪ Insufficient Infrastructure. Lack of sufficient infrastructure for enabling business, i.e., mine access roads, connecting roads network, utilities and industrial zones is one of the key factors behind low investment and poor growth of the minerals sector.
▪ Environmental Regulations. Mining processes produce large volumes of waste, some of which is highly toxic. This waste can result in acid mine drainage and groundwater contamination, and hence needs close monitoring to ensure that it has been neutralized before being returned to earth.
▪ Outdated Technology. Technology adopted both in quarrying and processing sub sectors is outdated and is unable to produce standardized and uniform quality products for domestic market in general and for export market in particular. The quarry wastage in Pakistan reaches 75 percent as compared to the international standard of up to 45 percent.28
The Way Forward
To enhance the mining sector's contribution to Pakistan's GDP, it is crucial to implement the following measures:
▪ Investor Confidence Building. Creating an environment that fosters investor confidence is essential. This involves implementing investor-friendly policies, ensuring regulatory clarity, and providing transparent and streamlined procedures for investment in the mining industry. By instilling trust and reducing uncertainties, both domestic and foreign investors will be more inclined to invest in the sector, leading to increased economic activity and growth.
▪ Exploration and Marketing Activities. To tap into the untapped potential of the mining sector, a strong focus on exploration and marketing activities is required. By conducting thorough exploration surveys and studies, the country can identify and develop new mining resources. Additionally, effective marketing efforts will help promote Pakistan's mining opportunities on the global stage, attracting international interest and investment.
▪ Institutional Capacity Building. There is a requirement to build institutional capacity in modern mining industry practices and sustainable mining ecosystem. Besides that, major HR upgrade is needed for contract formulation, negotiations, risk identification and mitigation, effective CSR structure, among other matters.
By surmounting these obstacles, there is a possibility to boost the mining sector's contribution to the GDP by 3 percent, while also fostering secondary and tertiary economic growth in remote regions.
1. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 5, para 5b.
2. Ibid.
3. https://gulfnews.com/world/asia/pakistan/pakistan granted-stay-over--6-billion-penality-in-reko-diq-case.
4. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 6, para 5e.
5. Non-Iron metal, soft and malleable.
6. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 6, para 5 f.
7. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 4, para 5 a.
8. “Tutorials - Javatpoint.” 2011. Www.javatpoint.com. 2011. https://www.javatpoint.com.
9. https//www.geology.com/minerals/barites.
10. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 11, para 1.
11. Ibid.
12. www.britannica.com.science.kaolin.
13. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 11, para 2.
14. https//www.geology.com/minerals/felspar.
15. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 11, para 3.
16. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 12, para 4.
17. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 12, para 5.
18. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 12, para 6.
19. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 13, para 7.
20. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 13, para 8.
21. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 13, para 9.
22. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 14, para 10.
23. Ministry of Energy, Petroleum Div, PMDC Mineral Catalogue, page 9.
24. Ibid.
25. Ibid.
26. Mineral ore; comprising iron, calcium and Rare Earth Elements.
27. https://www.pc.gov.pk/FIRST_05_PAGES_STRATEGY_FOR_MINERAL_SECTOR_DEVELOPMENT_IN_PAKISTAN.
28. https://www.pc.gov.pk/FIRST_05_PAGES_STRATEGY_FOR_MINERAL_SECTOR_DEVELOPMENT_IN_PAKISTAN.pdf
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