Pakistan and UAE to Collaborate on Key Mineral Projects

Pakistan is set to offer five promising mineral projects to the United Arab Emirates (UAE) for investment and development, marking a significant step towards strengthening economic ties between the two nations. The collaboration will be formalized through an agreement aimed at tapping into Pakistan’s rich mineral resources.

Key Projects Identified

The five selected projects are located in mineral-rich regions of Chagai, Waziristan, and Gwadar. These include:

1. Copper Blocks EL-302 and EL-303: Located in Chagai, these blocks are part of Balochistan Mineral Resources Limited’s portfolio.
2. Reko Diq Copper and Gold Mining Project: Situated in Chagai, this project is already under development with a focus on extracting copper and gold. The deposits are estimated to be worth billions of dollars.
3. FWO’s Copper Blocks EL-207 and EL-320: Also in Chagai, these blocks are managed by the Frontier Works Organisation (FWO).
4. FWO’s Copper Blocks ML-30 and EL-101: These blocks are located in Waziristan.
5. Copper Smelter in Gwadar: This facility will have a capacity of 50,000-80,000 tonnes per year.

Infrastructure Development

To support these projects, the government has plans to develop a rail network connecting Gwadar to Chagai. The projects are likely to undergo pre-feasibility studies in collaboration with consultants, making them market-ready for potential investors.

Strategic Partnerships and Funding

Pakistan is also exploring collaborations beyond the UAE. For instance, the Reko Diq project has been under feasibility study by Barrick Gold Corporation, with operations expected to begin by 2028. The company is currently securing funding from foreign donors.

Additionally, Pakistan is in discussions with Kuwait to establish a $1 billion mining fund, with a state-owned Pakistani company leading the cooperation efforts. The Kuwaiti company involved has expressed interest in mining metals and minerals essential for renewable energy.

Regulatory Framework and Government Initiatives

The Pakistani government is focused on developing a harmonized regulatory framework to attract foreign investment. Although the initial deadline for this framework was June 2024, it has been extended to ensure comprehensive planning. There is also a proposal to establish a dedicated Mines and Mineral Division to oversee and develop the sector.

The Ministry of Energy (Petroleum Division) is actively engaging with provincial governments and other stakeholders to align efforts and improve the overall performance of the mineral sector. A performance review and audit of federal and provincial entities are underway to identify areas for improvement.