Pakistan Petroleum Limited has informed Pakistan Stock Excahgne (PSX) about grant of Large Scale Mining Lease Deed by the Government of Balochistan (GoB) in favor of the company. According to a notification of PPL, the Company has been granted a large scale Mining Lease for Lead and Zinc, in District Khuzdar, by the Government of Balochistan and in this regard a Large Scale Mining Lease Deed has been executed, for large scale mining and establishment of a Lead-Zinc processing plant in District Khuzdar, Balochistan over an area covering 30 Sq.km (7413.16 acres).
The lease is valid for a term of thirty (30) years and shall be operated by Bolan Mining Enterprises, a 50:50 Joint Venture between PPL & GoB.
The estimated reserves of barite, lead and zinc are 69 Million Tonne as per bankable feasibility by a renowned German Consultant, over a portion of the leased area. The project would entail open pit mining with an ore beneficiation / process plant. Positive cashflows are expected from year 3 while the estimated project life is 32 years.