A peep into Pakistan’s minerals landscape

ISLAMABAD: The government is all set to market its mineral-rich landscape, which covers an outcrop area of approximately 600,000 square kilometres in the country, at the Pakistan Minerals Investment Forum 2025 (PMIF25) is to be held here on April 8-9 next month.

The forum will serve as a premier platform for global stakeholders, foreign investors, leading corporations, policymakers, international diplomats, financial organisations and industry experts to explore lucrative opportunities in country’s mining sector.

“Pakistan’s minerals landscape is a sleeping giant with immense economic potential. Through strategic investments, infrastructural improvements and value addition, the mining sector can become a key driver of national economic growth,” a senior official of Mineral Department in Petroleum Division told The News.

Despite its huge potential, the mineral sector currently contributes around 3.2pc to the country’s GDP, with exports accounting for only 0.1pc of the world’s total. However, with increasing exploration, foreign investment, and infrastructural improvements, Pakistan’s mining industry is poised for significant expansion.

“With 92 known minerals, 52 of which are commercially exploited, Pakistan produces an estimated 68.52 million metric tons of minerals annually. The sector supports over 5,000 operational mines and 50,000 Small and Medium Enterprises (SMEs), providing direct employment to 300,000 workers,” the official said.

Recognising the potential of the mining sector, the government is finalising National Minerals Harmonisation Framework 2025, a comprehensive policy aimed at attracting investment and formalising regulations at both the provincial and national levels. The framework will provide incentives to local and foreign investors, streamline mining regulations and facilitate public-private partnerships.

Some of the country’s most notable mineral reserves include world’s second-largest salt mines, the fifth-largest copper and gold deposits and significant coal reserves. Furthermore, the country holds vast quantities of bauxite, gypsum and precious stones, such as ruby, topaz and emerald, which offer considerable export potential.

Pakistan’s mining sector is increasingly attracting foreign investment, with global firms eyeing the country’s untapped mineral reserves. The Reko Diq copper and gold project, located in Balochistan’s Chagai district, is the world’s largest untapped copper reserve and stands as a milestone for Pakistan’s mining ambitions.

The project, revived by Canada’s Barrick Gold, is expected to start producing copper and gold by 2028, with an initial investment of $5.5 billion. According to Mark Bristow, CEO of Barrick Gold, which owns a 50pc stake in the project, the reserve is expected to generate approximately $74 billion in free cash flow over the next 37 years, based on consensus long-term prices.

The mine is anticipated to generate $2.8 billion in annual exports, creating thousands of jobs and transforming the local economy. A planned expansion will further increase copper production to 400,000 tonnes and gold output to 500,000 ounces per year, with an additional investment of $3.5 billion.

Under an intergovernmental transaction agreement, the federal cabinet has approved the sale of a 15pc stake in the Reko Diq project to Saudi Arabia. Saudi mining company Manara Minerals will acquire a 15pc stake in the mining project, potentially involving an investment of $1 billion.

The official said, “Pakistan’s commitment to infrastructure development is crucial to unlocking the full potential of mining industry. The China-Pakistan Economic Corridor (CPEC) is playing a pivotal role in transforming the transportation and export logistics of mineral resources. Gwadar Port and Port Qasim are set to enhance mineral exports, while improved road and rail networks will facilitate better connectivity between mining regions and industrial hubs”.

Logistics for the Reko Diq mine would be managed through a railway track that is being established in partnership with Pakistan Railways. The railway tracks would essentially entail moving mining supplies to the mine from Karachi and eventually exporting copper concentrate and gold from the mine to Karachi for export.

Beyond Reko Diq, Balochistan holds over 40 minerals, including oil, gas, uranium and coal, with the potential to fuel Pakistan’s energy and industrial needs for a century. Efforts are also underway to establish refineries, which will allow Pakistan to move up the value chain and reduce reliance on raw material exports.