Rich Balochistan Minerals: an excellent source of finance expansion.

AuthorFazl-E-Haider, Syed

Byline: Syed Fazl-E-Haider

Balochistan is endowed with rich mineral resources. There is a wider scope for setting up mineral-based industrial units in the province. The government needs to work out a comprehensive plan and strategy to set up such industries in the province.

Balochistan possesses huge reserves of coal at Hamai, Degari, Mach, Ziarat, Chamalang and Abegum. The estimated reserves of all coal fields in the province are 217 million tons. Coal is the cheapest source of thermal energy used in industrial sector. It has the potential to replace other expensive fuels such as furnace oil. Unfortunately, Pakistan Steel is still importing coal from foreign countries.

It is generally argued that it is not feasible for Pakistan Steel to use Balochistan coal with larger sulphur content, as sulphur gets accumulated in different parts of the boiler. Raw coal contains different impurities like sulphur, calcite, clay, rock and shale. This impure coal cannot be utilized in the industry hence impurities must be washed out. For saving energy and cost, there is a need to set up coal washing plants in the province. Presently, bricks makers utilize over 80 percent of the local coal and the rest are being consumed by cement makers to blend it with the imported coal to reduce the cost of production.

It is economically no longer cost-effective for the Pakistan Steel to continue relying on imported coal, as its price has increased in the international market. It would be cost-effective for Pakistan Steel to mix the cheap local coal with the imported one. The quality of Chamalang coal is better than the rest of coal being mined from different coalfields in Balochistan. Pakistan Steel should buy Chamalang coal. This will not only increase the demand of local coal, but also give a further boost to the mining operations in the area.

Balochistan's vast coal reserves can be utilized for energy generation. About one percent local coal is presently utilized by coal-based power stations. The iron ore deposits are found at Dilband, Chilghazi, Lasbella, Nokkundi and other areas of district Chagai in the province. Iron ore deposits at Dilband in Mastung district of Balochistan are considered the country's first ever economically exploitable deposits. According to an estimate, Dilband resource of over 200 million tons of iron ore contains between 30 to 40 percent iron. It is substantial iron ore deposit is bound to play an important role in future industrialization...

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