Mineral Industry

Group Members

Syed Farooq Shamim

Syed Osama Kadri
Agenda
 What is Mineral?  GDP Contribution
 Mineral & rocks.  Export
 Types of Minerals.  Imports
 Mineral Industry of  Mining Areas
Pakistan.  Environmental
 Types of Minerals in damages.
Pakistan.  Current Scenario
 Review of Minerals in
Pakistan.
 Looking Ahead
 Production Capacity.
 Conclusion
 Effect on Economy
 Recommendation
QURAN

“Do ye not see

That God has subjected
To your (use) all things
In the heaven and in earth
And has made His bounties
Flow to you in exceeding
Measures (both) seen and hidden”
Surah Luqman
Verse # 20
What is Mineral

 A mineral is an element or chemical

compound that is normally crystalline and
that has been formed as a result of geological
processes.
Minerals & Rocks
 A mineral is a naturally occurring, inorganic
solid with a definite chemical composition and
a crystalline structure.
 A rock is an aggregate of one or more
minerals. Some rocks are composed of just
one mineral. For example, limestone is a
sedimentary rock composed almost entirely
of the mineral calcite.
Types of Minerals

 There are currently more than 4,000 known

minerals, according to the International
Mineralogical Association, which is
responsible for the approval and naming of
new mineral species found in nature. Of
these, perhaps 150 can be called "common,"
50 are "occasional," and the rest are "rare" to
"extremely rare."
Types of Minerals
 Talc (Mg3Si4O10(OH)2)
 Gypsum (CaSO4·2H2O)
 Calcite (CaCO3)
 Fluorite (CaF2)
 Apatite
(Ca5(PO4)3(OH,Cl,F)
 Orthoclase (KAlSi3O8)
 Quartz (SiO2)
 Topaz (Al2SiO4(OH,F)2)
 Corundum (Al2O3)
 Diamond C (pure carbon)
Mineral Industry Of Pakistan

 The mineral potential of Pakistan is widely

recognized to be excellent but its
development is slow because of technical,
financial and organizational problems. This is
evident from the fact that the sector has been
allocated very small amount which has
ranged between 0.45% to 2.46% of the total
public sector expenditure since FIRST FIVE
YEAR PLAN.
Types of Minerals in Pakistan
 Mining Oil & Coal  Tin
 Limestone  Copper, Gold, Sliver
 Rock Salt  Coal
 Crude Oil  Steel
 Natural Gas  Uranium
 Iron Ore  China Clay
 Marble  Aragonite
 Gypsum  Silica Sand
Review of Minerals in
Pakistan
 Copper, Gold, and Silver:- The $323 million
Saindak copper, gold, and silver mine in the Chagai
District of Balochistan was to be revived through
supplementary grants of $29 million by the Government.
The operating cost of the mine was estimated to be $330
million per year (Mining Journal, 1999b). Saindak Metals
Ltd. had previously sought a short-term loan of $24
million from China to restart the mine and smelter, but
nothing had come of that effort. The company planned to
lease out its copper mine and smelter for 10 to 15 years.
It also sought Iran’s help to supply oil to the mine
Review of Minerals in
Pakistan
 Coal:-The coal industry is small with an
output of 3 to 4 Mt/yr. The country, however,
possesses significant coal reserves. The
Geological Survey of Pakistan submitted a
plan for the development of new coal mines.
The plan was to extract coal for power
generation and the cement sector.
Review of Minerals in
Pakistan
 Uranium:-The Pakistan Atomic Energy
Commission developed a new uranium field
in Tumman Leghari in Punjab. The plan was
to extract uranium for the country’s nuclear-
power-generation facilities in Karachi in
Sindh and Chashma in the Mianwali District
of Punjab.
Review of Minerals in
Pakistan
 Natural Gas and Oil:-Pakistan’s energy needs
mainly come from oil and gas—natural gas made up 37%,
and oil and petroleum products, 44%. The country had 651
billion cubic meters (Gm^3) of proven gas reserves in 1999,
but discoveries of new gas fields could add an additional 113
to 396 Gm^3.
 Pakistan produced 61,000 barrels per day (bbl/d) of crude
petroleum in 2004 and has plans to increase its output to
100,000 bbl/d by 2010. Although the country is unlikely to
reach self sufficiency, the Government encouraged private
firms, which includes foreign firms, to develop domestic
production capacity. Pakistan Petroleum Ltd. (PPL) expanded
its interests in 2004 by drilling offshore at the Pasni Field. This
was the first time that a Pakistani oil company had explored
offshore.
Review of Minerals in
Pakistan
 Tin:-Consumption of tinplate in Pakistan totaled
187,000 metric tons (t) in 1998. Siddiqsons Tinplate
Ltd. Started commercial production of a 120,000-
metric-ton-per-year. Tinplate line at Winder in
Balochistan. Sollac of France and Mitsubishi Corp.
of Japan were shareholders in the plant. The $30
million plant was to operate at 70% of capacity in the
first year; Sollac contracted to supply 50% of
blackplate feedstock, and Mitsubishi, 25%.
Review of Minerals in
Pakistan
 Iron Ore:-Iron ore deposits are also mostly of poor
quality. The most extensive known reserves are
situated in the Kalabagh region in western Punjab.
Other low-grade ore reserves have been found in
Hazara in the North-West Frontier Province. Small
reserves of high-grade iron ore have been identified
in Chitral and in the Chilghazi area (located in
northwestern Balochistan), also in the North-West
Frontier Province.
 Production Capacity
(In Metric
Tonnes)
Mineral Recourse size Annual Production
1 Antimony Small 35

2 Chromite Small to medium 27,458

3 Aragonite / Large 497,317

marble
4 Granite Large 5,676

5 Onyx marble Large 28,780

6 China Clay Small to medium 61,403

7 Fire clay Medium 124,003

8 Fuller’s earth Medium 18,446

9 Barite Large 26,002

 Production Capacity
(In Metric
Mineral
Tonnes) Recourse size Annual Production
10 Gypsum Large 384,513

11 Limestone Large 8,697,573

12 Magnesite Large 4,535

13 Marble Large 408, 000 tonnes

14 Rock salt Large 157,300

15 Mining & Oil CoalMedium 2.35 million tonnes

16 Crude Oil Small 15.75 million barrels

17 Natural Gas Large 15.03 million cubic meters

18 Iron Ore Medium 955,000 tonnes

Effect on Economy

 Pakistan’s mining and quarrying sector,

played a minor role in the country’s economy;
these mineral fuels accounted for only 0.50%
to 1% of the country’s GDP.
 GDP Contribution
Table : Share in GDP (Rs. Million)

Year Share of Mining & Total GDP %

Quarrying At current prices share
1990-91 6,437 908,374 0.71

1991-92 7,117 1,077,943 0.66

1992-93 7,403 1,200,129 0.62

1993-94 8,664 1,412,858 0.61

1994-95 9,007 1,688,126 0.53

1995-96 11,272 1,929,891 0.58

1996-97 11,483 2,226,580 0.52

1997-98 13,510 2,480,884 0.54

1999-00 16,851 2,922,924 0.58

2000-01 18,369 3,256,412 0.61

Total 106,256 19,558,787 0.57

Saindak Copper Gold Project,
Chagi Balochistan
Import

 The major minerals, raw materials imported

are iron ores costing Rs 2.8 billion, coking
coal Rs 2.6 billion and phosphate rocks Rs
1.08 billion during the year 2001-2002. These
items constitute major share of imports that is
22.47%, 21.0% and 8.02% respectively of the
total imports.
Export

 According to the study on “EXPORT

POTENTIAL OF MINERALS AND CERTAIN
MINERAL BASED PRODUCTS” prepared for
Ministry of Petroleum and Natural Resources
by the Institute of Mining Engineers of
Pakistan. Export potential of 10 minerals and
8 mineral based products was established.
 Export
Commodity Unit Quantity Value (In Thousands)
Marble, Onyx, Block MT 11,964 230,747

Marble, Onyx, Slab MT 2,316 57,397

Marble Chips MT 14,638 50,247
Rock Salt MT 29,745 49,050
Sea Salt MT 23,041 8,867
Waste and Scrap of MT 447 36,158
Cast Iron
Chromium Ores and MT 84,153 371,411
Concentrates
Copper waste MT 1,842 176,643
Chalk MT 815 3,281
Mining Areas

The few potential/major gemstone and mineral

mining areas in Pakistan are:
 Northwest Frontier Province
1. Swat (Malakand division)
2. Dir (Malakand division)
3. Mansehra (Hazara division)
4. Kohistan (Hazara division)
5. Peshawar district (Frontier province)
Mining Areas
 Federally Administered Tribal Areas
1. Mohmand Agency
2. Bajaur Agency
3. Khyber Agency
4. North and South Waziristan Agencies
 Baluchistan Province
1. Kharan district
2. Chaman (near Quetta)
Mining Areas

 Himalayan Crystalline Belt

 Kohistan - Island Arc
 Karakoram Block
 Chagai Arc
 Makran Trench Zone
Environmental Damages
 Environmental considerations are obligatory elements in
mining ventures. The Environmental Protection Agency
(EPA) of Pakistan is responsible for overall
environmental policy, law, regulations and management
at the Federal level.
 The main concerns of EPA on mining are so far related
to coal, mercury emissions from coal burning, fluorite,
asbestos and quarry dust near major cities.
 The use of cyanide in mining becomes more and more
controversial. Cyanide is highly poisonous, lethal to
humans by blocking the ingestion of the oxygen by cells.
Current Scenario
 Presently, mineral exploration, to large extent, is in the
early stages of first ‘CYCLE’ of modern exploration in which
exploration is aimed at the discovery of large outcropping
mineral deposits rather than buried or blind deposits which
require high technology, high risk & expensive exploration
programme.
 In spite of the fact that the nature of Mineral industry is
different from other industries i.e. complex, complicated,
heterogeneous, risky, capital intensive, require long
gestation period etc it faces other problems that contribute
to its slow and/ or restricted growth resulting in its
contribution to GDP that on an average ranges between
0.5% to 1.0%, unchanged over the last many decades.
Looking Ahead
 What lies ahead for the Mineral Industry of Pakistan?
As constituted today, it bears little resemblance to the
sector projected in official documents, studies &
recommendations made in various committees,
seminars and workshops held decades ago.
 The full spectrum of Mineral Sector particularly when
the industry is so vast, complex and difficult to see
twists and turns that future may bring.
Conclusion
 Because of favorable geological environment,
Pakistan is richly endowed with the diversity of
mineral potential. However, its development
remained slow because of technical, financial,
organizational and other problems inherent in the
nature of mineral industry. Inspite of all these
indigenous and external problems, vigorous efforts
have been and are still being made to built the
mineral sector as a potential factor in the national
economy.
Recommendation
 As recommended by Asian Development
Bank Mission in Islamabad, feasibility studies
of the projects of minerals should be carried
out in order to ascertain their viability.
 Latest technology must be used to explore
mineral deposits.
 Technology should also be used in mining and
other mineral preparing processes.
Thank You