Provinces Offer Security Cover for Mineral Investors
Provincial leaders have offered security guarantees and investment incentives to foreign mineral investors at the Pakistan Minerals Investment Forum in Islamabad, even as work on the Reko Diq copper-gold project stays paused until June next year.
Balochistan Chief Minister Sarfraz Bugti told investors that the Frontier Constabulary was raising a new security division to give them a safe corridor in the province. He said the province was looking forward to two major oil and gas interventions, the Saruna and Sui Fertiliser cities, and planned to digitise its mineral department before July next year.
The assurances came on the opening day of the two-day forum, which drew delegations from 60 countries. Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb led the federal pitch. The forum opened with a pledge of predictable policies and institutional support for mining investment.
Mineral investors offered loans, cheap land and duty relief
Punjab Chief Minister Maryam Nawaz presented the most detailed incentive plan. She offered concessional loans, cheaper land on lease and waivers of customs duty on mineral and mining imports, mostly aimed at small and medium-sized companies.
She said the province had set up a Mineral Processing Zone at Quaidabad, with monthly lease rent of Rs15,000 and a 15-year lease. A Sanati Taraqi zone for export promotion offers waived import duties and zero interest on loans of up to Rs100 million, with 3 per cent interest on larger loans up to Rs3 billion and 5 per cent on loans from Rs3 billion to Rs5 billion.
Maryam said Punjab’s minerals revenue had risen fourfold, from Rs10 billion to Rs40 billion, in two and a half years, and pointed to Chiniot’s 261.5 million tonnes of iron ore.
She also said surveys were under way to measure placer gold deposits in Punjab’s rivers, mainly around Mianwali and Attock, and that the province was giving interest-free financing to pink salt miners so the mineral could be sold as finished goods instead of raw exports.
Reko Diq pause shows why guarantees matter
Bugti said television coverage exaggerated Balochistan’s security situation, but confirmed Barrick Gold, which owns 50 per cent of Reko Diq, had paused work until June next year over security concerns.
The chief minister said the project would be operational by 2029, a deadline that looks hard to meet while work stays paused. Pakistan is keen to revive the stalled project, and Barrick chairman John L. Thornton was in Islamabad for the forum. Reko Diq has already slipped before, with its start pushed back in earlier planning.
Ivanhoe Mines executive chairman Robert Friedland was also in the capital. The firm may announce memorandums of understanding with federal bodies on Friday, the second day of the forum. Ivanhoe has already signed a deal with Mari Energies in its South Asia push.
Kundi flags illegal mining losses in KP
Khyber Pakhtunkhwa Governor Faisal Karim Kundi said building confidence among local and foreign investors stayed the priority for the provincial government. He said the focus should be on long-term partnerships rather than quick financial commitments.
He said the province was setting up a Mineral and Mines Company, and that illegal mining was causing a loss of Rs2 billion every month. At least 10 policemen were martyred on Wednesday in the Kohat region during the campaign against it.
Sindh Chief Minister Murad Ali Shah urged investors to visit the provinces rather than limit their meetings to Islamabad. He said Sindh had promising lithium reserves and hoped coal-to-fertiliser and coal-to-gas projects would be finalised within the next year.
Dar said the provinces were an integral part of the mineral plan. He said the Pakistan Investment Policy 2023 protected investors and described Balochistan as vital to Pakistan’s mineral future as global demand for copper rose.
The forum aims to open up more than $6 trillion in untapped reserves covering 92 types of minerals, 52 of which are already exploited commercially, according to Petroleum Secretary Hamed Yaqoob Sheikh. Sindh has separately pitched its own mineral sector to investors this week, while Pakistan has set a target of $8 billion in mineral exports and Saudi investors have shown interest in Balochistan’s minerals.
Frequently asked questions
What security guarantees did the provinces offer mineral investors?
Balochistan said the Frontier Constabulary was raising a new security division for investors, while Khyber Pakhtunkhwa promised security and one-window facilitation through a new Mineral and Mines Company.
Why is the Reko Diq project paused?
Barrick Gold, which owns 50 per cent of Reko Diq, has paused work until June next year over security concerns. Balochistan’s chief minister said the project would be operational by 2029.
What incentives did Punjab offer at the minerals forum?
Punjab offered concessional loans, cheaper leased land and waived customs duties on mining imports, including a Mineral Processing Zone at Quaidabad with Rs15,000 monthly rent and interest-free loans of up to Rs100 million in a dedicated export zone.
Which foreign mining firms are involved in the forum?
Barrick Gold and Ivanhoe Mines are the main foreign names at the forum, and Ivanhoe was expected to announce memorandums of understanding with federal bodies on the second day.
