The Chiniot-Rajoa iron ore deposits in Punjab represent one of Pakistan's most significant yet underutilised mineral assets. Discovered in 1989 by the Geological Survey of Pakistan (GSP), these deposits were celebrated as a cornerstone for achieving self-reliance in steel production. However, bureaucratic inefficiencies, legal disputes, and inconsistent policymaking have long hampered their development.
The Chiniot-Rajoa iron ore deposits in Punjab represent one of Pakistan's most significant yet underutilised mineral assets. Discovered in 1989 by the Geological Survey of Pakistan (GSP), these deposits were celebrated as a cornerstone for achieving self-reliance in steel production. However, bureaucratic inefficiencies, legal disputes, and inconsistent policymaking have long hampered their development.
In February 2015, then-prime minister Nawaz Sharif announced the discovery of these deposits, estimated to contain 500 million tons of high-quality iron ore alongside substantial copper, silver, and gold reserves. The announcement sparked optimism, emphasising the transformative potential of these resources for Pakistan's industrial sector. Geological studies indicated that these reserves could sustain steel production for decades, potentially meeting 40 per cent of the country’s annual steel demand. Further assessments by the Punjab Mineral Development Corporation (Punjmin) categorised the reserves into smelting-grade, high-grade, medium-grade, and low-grade ore, suitable for diverse steel production processes.
The project’s development roadmap included building essential infrastructure, such as water, energy, and transportation facilities. Although the site is near population centres with existing infrastructure, significant investments were required to support a large-scale mining and steel production complex. Additionally, the proximity of coal and other raw materials reduced logistical challenges, further enhancing the project's feasibility. Notably, the area spanning over 2,000 square kilometres around Chiniot and Rajoa also showed promise for other metallic minerals and precious metals.
Progress initially gained momentum in 2007 when the PML-Q-led Punjab government signed a mining lease agreement with a private company. However, the succeeding administration under former chief minister Shehbaz Sharif declared the agreement fraudulent, annulling the lease. The matter was referred to the Lahore High Court, later to the Supreme Court, where the government’s decision was upheld, which nullified the agreement.
Legal proceedings against a former Punjab minister for mines and minerals remain ongoing, adding another layer of complexity to the situation. The former minister has cited political victimisation, further complicating an already contentious issue. These challenges reflect a broader pattern of mismanagement and lost opportunities in Pakistan's efforts to exploit its vast mineral wealth. The precedent set by the Supreme Court's intervention in the Reko Diq copper-gold mining project, which stalled progress for over a decade and resulted in hefty penalties, underscores the consequences of such mismanagement.
In 2010, the Punjab government partnered with Chinese consultants to conduct a modern geoscientific exploration of the Chiniot and Rajoa areas. By April 2014, the China Metallurgical Corporation (CMC) had confirmed the deposits’ high quality and vast quantity. This study renewed optimism, with government announcements of establishing a world-class steel mill to utilise indigenous iron ore. Yet, tangible progress remains elusive, and successive administrations have failed to meet key project milestones.
The economic potential of the Chiniot-Rajoa project is immense. Feasibility studies conducted by international firms from Germany, Turkiye, and other countries have validated the economic viability of mining and steel production in the region. These studies project production costs to be 25–30 per cent lower than global steel prices, offering Pakistan a competitive edge. The envisioned integrated project includes iron ore extraction, a beneficiation plant, and a steel mill with a production capacity of one million tons annually. As a precursor, a pilot plant with a capacity of 25,000 tons per year was also planned.
However, bureaucratic delays, shifting government priorities, and inadequate planning have caused repeated setbacks. Key project milestones, including the finalisation of partnerships with domestic and international investors and the establishment of the steel mill, were scheduled for 2016 but remain unachieved.
At various stages, the project was proposed under the China-Pakistan Economic Corridor (CPEC) and highlighted as a high-potential investment for Saudi Arabia. In 2018 it was also included in the Prime Minister’s Mineral Development Package for securing technical assistance from the World Bank and the Asian Development Bank. Unfortunately, none of these efforts have materialized into concrete progress.
The development of the Chiniot-Rajoa deposits holds strategic importance for Pakistan. Utilising these resources would significantly reduce dependence on steel imports, strengthen the industrial base, and create employment opportunities in mining, metallurgy, and related sectors. The project aligns with national goals of self-reliance and economic diversification. The high-quality iron ore reserves in Chiniot are also comparable to those in countries like India, Brazil, and Russia, presenting opportunities for export and foreign exchange earnings. The proximity of skilled labour and population centres adds to its feasibility.
To realise the Chiniot-Rajoa project's potential, the government must address critical challenges with urgency. Bureaucratic inefficiencies and political interventions have been major hurdles. A clear, consistent strategy is essential to attract investors and expedite implementation. The legal disputes surrounding the project underline the need for robust regulatory frameworks to ensure transparency and prevent similar issues in the future.
Collaboration with private-sector investors, both domestic and international, is vital. Providing incentives like tax breaks and streamlining business procedures can make the project more appealing to investors. Investments in infrastructure, particularly in transport, energy, and water supply, are critical. Adopting a phased approach -- starting with the pilot plant -- can generate momentum for the full-scale project. Engaging local communities and ensuring they benefit from the project would also foster social acceptance and support.
The Chiniot-Rajoa iron ore deposits embody both promise and neglect. With the potential to revolutionise Pakistan’s steel industry and contribute significantly to the national economy, their development remains hindered by delays and mismanagement. A renewed focus on strategic planning, transparent governance, and effective partnerships is imperative to transform this vision into reality.
Without timely action, the dream of establishing Pakistan’s first integrated mining, processing, and steelmaking complex may never materialise. Meanwhile, the dormancy of Pakistan Steel Mills (PSM) since 2015 underscores the urgency of addressing the country’s steel production needs through such projects.
Without timely action, the dream of establishing Pakistan’s first integrated mining, processing, and steelmaking complex may never materialise. Meanwhile, the dormancy of Pakistan Steel Mills (PSM) since 2015 underscores the urgency of addressing the country’s steel production needs through such projects
The writer is a retired chairman of the State Engineering Corporation and former member (PT) of the Pakistan Nuclear Regulatory Authority.
