MINERAL AND METAL INDUSTRY IN PAKISTAN:

URANIUM, IRON & STEEL, AND COAL

MUHAMMAD ALFI ARINANDA & DANISH BILAL
EMERALD ERASMUS MUNDUS MASTER IN GEORESOURCES ENGINEERING
FEBRUARY 4, 2015

OVERVIEW OF MINERAL AND METAL INDUSTRY

Rich in mineral resources and produced a variety of industrial and metallic minerals
According to survey :

2nd largest coal reservoirs, 5th largest gold mines, 7th largest copper mines

7th country utilized nuclear power

Industrial sectors are 25% of countrys economy

Mining and quarrying accounted for 15%

DEVELOPMENT OF PAKISTAN
Development in infrastructure

Demands on iron and steel as base

metal for infrastructure development

Development in energy

Diversification

Alternative energy

Uranium

Iron and Steel

Coal

URANIUM
Launched the nuclear research and
development program in 1954

First test: 1998 (Khushab reactor)

New power projects in 2013 approval:

3.5 GW

2200 MW of nuclear more than

50%

Estimated annual production:

23 tons/year from 1980 to 2000

Total production until 2005: 671 tons

Import of uranium:

Around 110 tons from Niger in 2007

Around 110 tons from Libya

IRON AND STEEL

One of the major import commodities of

Pakistan in 2013 (State Bank of Pakistan,
2013)

Declination of iron and steel production for

the past 10 years

As domestic consumption continues to grow,

the demand-supply gap is widening.

Importation

Development of local resources

Nizampur
66.000.000 MT
Kalabagh
350.000.000 MT

Abbotabad
90.000.000 MT

Pezu
66.000.000 MT
Nok Kundi
45.000.000 MT

Dilband
200.000.000 MT

COAL

Coal contributes around 26% of worlds primary commercial energy.

Pakistan is producing 6% of its energy by coal.

Pakistan has total coal resources of 186 billion tons.

In 1992 GSP discovered a big coal deposit in the Sindh province which has potential of 175
billion tons of lignite.

Now Pakistan is 7th biggest country having biggest deposit of coal.

This deposit is spread over more than 9,000 km.

COAL

DEVELOPMENT BARRIERS

Geological knowledge

Unplanned mining

Technical staff

Infrastructure

Funds

Transportation cost

Value addition

Supply-demand

Local constraint

Politic

POLICY RECOMMENDATIONS
1. To attract international investors, it is recommended to Pakistan to provide them
subsidy on the tax and make policies transparent.
2. Increasing the economic contribution of the mining sector to Pakistans economy.
3. Lease Holders must acquire the technical and geological before mining.
4. The Lease Holders should emphasize on feasibility study before opening of the mine.
and hire the technical staff.
5. Government must provide necessary infrastructure to mineral rich areas.
6. Leases should be granted to financially and technically sound companies.
7. Due to high transportation costs, subsidy or tax holiday must be granted

8. For value addition facilities must be installed in the country.

9. There must be a system to regulate the quality, price structure and demand/ supply of
minerals in the country.
10. To avoid disputes there must be a fixed monthly amount for the landlord.

11. Political atmosphere should be made calm to attract local and foreign investment.

THANK YOU FOR YOUR ATTENTION

MUHAMMAD ALFI ARINANDA & DANISH BILAL
EMERALD ERASMUS MUNDUS MASTER IN GEORESOURCES ENGINEERING
FEBRUARY 4, 2015