Notes: Natural Resources of Pakistan

[rose_pak]

REKO DIQ GOLD MINE

INTRODUCTION

Reko Diq is the name of small town situated in district Chagai, Baluchistan. It contains $270 bn proven and $3 trillion estimated gold and copper. In December, 1993, this project was given to an Australian Company BHP (Billiton) for only exploration. BHP (Billiton) sold its rights to Tethyan Copper Company, a Canadian Company. The government of Pakistan approved its license in 2006 (Musharraf government). The license is expired in Febuary2011. According to the agreement, Tethyan had 75 percent share of the profit and the government of Baluchistan had remaining 25 percent. Besides this, Tethyan Company had to pay 2 percent Royalty. Tethyan Company floated shares in European markets and earned about $60 million but nothing is given to Baluchistan Government. (Salahuddin, AG Baluchistan).

VALUE OF THE REKO DIQ MINERALS

Pakistan is rich in Natural Resources and there are uncountable resources. This can be proved by the following finding.

There is Belt of Copper, which comes from the Central Asia and passes through Pakistan (G.B, K.P and Baluchistan) and goes to Afghanistan then Iran. This is famous belt called Tethyan Copper Belt. Saindak copper and gold is also comes in this belt. This belt is so rich that you can’t imagine. You can tired by mining but the resources can’t be finished said by Dr Samar Mubarak Mand.

The digging process will also help excavate a number of precious minerals, including zirconium and cobalt.

Recently the delegation of company met with the President Asif Ali Zardari and Prime Minister Yusuf Raza Gillani and informed that, this mega project will generate only $3.5 billion for the Government of Pakistan and $ 4.5 billion for the Government of Baluchistan for the next forty years.

CURRENT SCENARIO OF REKO DIQ PROJECT

The license was given to Tethyan Company for exploration purpose which is now expired. The Company is now demanding for the license of mining. At this junction our national hero and current Chairman of Reko Diq Project Dr. Samar Mubarak Mand appeared on the screen and approached the Supreme Court. According to his findings, Pakistan has enough Manpower and Capital to run this project. He said that Natural Resources are the provincial subject and the project will be carried out under the supervision of Baluchistan Government with the assistance of top Pakistani engineers. Further he said that, with the initial investment of US $3.3 billion we can extract the minerals of $ 273 billion. Currently no company is given the license of mining. The overall estimated value of the Gold and Copper of Reko Diq is at least $ 3 trillion.

ANALYSIS

• Reko Diq Gold Mine is one of the largest gold mines of the world. We have seen its total value is more than $270 billion. By investing just $3.3 billion, Pakistan could earn $2 billion every year.
• Currently Pakistan is importing about 100000 ton of copper for Copper Industry, this can be saved if Reko Diq is mined by indigenous Pakistani company. In addition to this, we can also export and earn foreign reserves. There will be creation of jobs and ultimately there will be happy economy.

Dawn: Reko Diq is a giant copper and gold project in Chaghi, containing 12.3 million tons of copper and 20.9 million ounces of gold in inferred and indicated resources. The copper-gold deposits at Reko Diq are believed to be even bigger than Sarcheshmeh in Iran and Escondida in Chile. The Reko Diq copper deposits which is in the neighbourhood of Saindak copper project, is four times larger in copper ore tonnage than Saindak. The most credible international surveys suggest that Reko Diq is one of the biggest undeveloped copper projects in the world with over 11 billion pounds of copper and nine million ounces of gold. So far, three foreign companies have purchased stakes in the strategic copper and gold assets setting off a cycle of ‘change of foreign ownership’ of Reko Diq copper project. Pakistan has only 25 per cent stake in the Reko Diq copper project. The rest of the 75 per cent stakes had first been transferred to BHP Billiton, the Anglo-Australian mining giant and then BHP Billiton under a ‘deed of waiver and consent’ transferred it to the Australian TCC and now TCC has sold its 19.95 per cent stake to Antofagasta Minerals.

Compiled by Ahmad Shakeel Babar (rose_pak)

[rose_pak]

THAR COAL RESERVES

INTRODUCTION

• In Pakistan there are coal reserve of 186.560 billion tonnes in Sindh, 235 million tonnes in Punjab, 217 million tonnes in Balochistan, 90 million tonnes in Khyber Pakhtunkhwa and 9- million tonnes is Azad Kashmir.

THAR COAL RESERVES occupies an area of some 9000 sq. km. it is the 94 percent of the total Coal of the country. Its estimated value is $25 trillion.

POTENTIAL OF THAR COAL by DR. SAMAR MUBARAK MAND

Dr. Samar Mubarak Mand is the nuclear scientist. Besides many responsibilities, currently he is supervising the coal mining of Thar Coal Power Project. He says,

• The THAR COAL RESERVES valued $25 trillion; we will not only generate electricity for 500 years but will also save about four billion dollars in overwhelming oil import bill every year.
• Nuclear Scientist further said, if all the oil reserves of Saudi Arab and Iran put together, these are approximately 375 Billion Barrels, but a single THAR COAL RESERVES of Sindh is about 850 Trillion Cubic Feet, which is more than oil reserves of Saudi Arab and Iran
• The coal power generation would cost Pakistan PKR 5.67 per unit while power generated by Independent Power Projects cost PKR 9.27, he went on to add.
• 100 million barrels of Diesel can be produced for 500 years.
• 50000-MW of electricity can be generated for 500 years.
• He said we have men power as well, in Punjab University; the students of Chemical technology Department had made Diesel from the Coal gas.

WORK/PROJECTS DONE ON THAR COAL RESERVE

1. In 1995, the then Prime Minister Benazir Bhutoo inaugurated the project of 320-MW but with the dissolution of her Government in 1996, the project was also ended by saying that technically it is not possible.

2. In 2002, the State owned company of china, SHENHUA, was given task on the condition of build, operate and transfer basis. SHENHUA Company started work immediately and it spent about $8 million on feasibility report. All the things were going well, the company said that by 2006, 600-MW will be produced but it couldn’t happen because of tariff rate. The Company wanted to sell the electricity at 5.75 Cents/unit. But, the NEPRA was not ready to purchase beyond the 5.34 Cents/unit. Then, the project was not continued by saying the Chinese company that the Government of Pakistan is not serious. There was difference of just 0.41 Cents (5.75 -5.34=0.41). Whereas, after four years, in 2006, the NEPRA was ready to purchase the electricity from the IPPs at the rate of 13.5 Cent/unit.

3. In 2001, THAR COAL TASK FORCE and in 2008 THAR COAL ENERGY BORAD were made. In last 22 years many people were appointed and are appointing, many announcements are made but practically nothing is happen.


LOBBIES WHICH ARE AGAINST THE THAR COAL

1. IMPORTERS OF GENERATORS.
2. OIL IMPORTERS, currently our country is generating 60% of energy from the fossil fuels. Petroleum mafia is too much powerful in Pakistan. Petroleum mafia consists of not only businessmen but also the financiers of Politicians and Army Generals.
3. COAL IMPORTERS.
4. SUPPORTERS OF KALA BAGH DAM, They are mostly the politicians of Punjab. They fell if Thar Coal is started then the charm of Kala Bagh will be lessen because there will be no need of electricity.


CURRENT STATUS OF THAR COAL RESERVES

With the outstanding efforts of Dr. Samar Mubarak Mand the work on THAR COALis started. He had made a team of top Pakistani engineers and a pilot project is going on. According to him within two to three months gas will be execrated from the Thar Coal Reserves.

ANALYSIS

THAR COAL RESERVES is the greatest NATURAL RESOURCE OF PAKISTAN. But, due to bad governance our leaders did not take advantage from these reserves and had faced billions of economic losses. This project will not only solve the electricity crisis but will also provide gases, minerals and diesel. Our leaders should take interest in this project as soon as possible because it will take another three years if started today.

Special Thanks to pakistanandpakistanis.com

Compiled by Ahmad Shakeel Babar (rose_pak)

[rose_pak]

Petroleum and Natural Resources Minister Asim Hussain told the National Assembly on Monday that Sui area in Balochistan had huge reserves of tight gas equivalent to its presently known natural gas reserves.

Quoting estimates that he said had been kept hidden in the past, he also put the country’s natural gas reserves at 100 trillion cubic feet, compared to previously reported estimate of nearly 29 trillion cubic feet.

Dawn