Pakistan has significant mineral resources such as copper, gold, iron, coal, gems, and salt. Mining involves extracting minerals from the earth through surface or underground mining methods. Currently 52 minerals are mined in Pakistan, including major production of coal, rock salt, and other industrial minerals. The mining sector contributes around 0.5% to Pakistan's GDP currently. However, mining potential remains largely untapped due to issues such as lack of infrastructure, technology, funding, and government interest. Developing mining could boost Pakistan's economy through job creation, increased tax revenue, and industrial growth. However, environmental impacts and safety issues pose challenges.

1. 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 mining
Mining 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
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2. 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 - Mining
Through 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
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3. 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
tonnes of rock salt deposits. The current production from the mine is 325,000 tons salt per
annum.
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4. 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
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.
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5. 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- 1995- 1996- 1997- 1998- 1999-
95 96 97 98 99 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
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6. 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
D. G. Khan Iron Ore Project
Khushab Bauxite Project
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7. 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.
Exploration and Development of Copper in North Waziristan.
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8. 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
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
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9. 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
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
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10. 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
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.
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11. 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.
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.
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12. 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
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.
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13. 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.
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