ISLAMABAD: Pakistan can save its foreign exchange and reduce the import bill by exploring and processing the local reserves of iron ore, which are sufficient to feed its steel mills, WealthPK reports.
The indigenous sources of iron ore can meet at least 47 percent of Pakistan steel’s demand to feed the blast furnaces and save foreign exchange. However, proper attention has not been paid to the exploration of iron ore reserves in the country.
Muhammad Yaqub Shah, Principal Geologist in Global Mining Company and former general manager of geology in Pakistan Mineral Development Corporation (PMDC), told WealthPK Pakistan imported iron ore worth $4.59 billion in the year 2021.
Iron ore is found in Kalabagh, Chiniot, Nok Kundi, Dilband, Mashki, Dammer Nissar, Chitral, and many other areas in Pakistan. The viability of iron ore of more than 50 percent is necessary to feed the steel mills. The commonly found ratio of iron in Pakistan is around 30 to 32 percent but the grades can be improved by proper processing.
Muhammad Yaqub Shah said that reserves of iron ore in Chiniot possessed viability of 50 to 70 percent. He said that studies proved that only the Nok Kundi iron ore reserves were sufficient to fulfil 47 percent of Pakistan Steel Mills’ demand. He said that 69 to 86 percent of iron can be extracted from the Mashki iron ore deposit in Chagai. Small iron ore reserves like that in Zard Koh and Kulli Koh Zard Koh can also prove cost-effective.
Chiniot iron ore reserves in Punjab have more than 250 million tonnes of minerals, consisting of iron, copper and gold. Its iron meets specifications of metallurgical grade and is well suited to feed the steel mills in all aspects.
Kalabagh in Punjab is considered to have about 300 million tonnes of iron ore, containing 9 to 50 percent iron with an average grade of 30%. It is a large deposit with varying grades both in terms of mineralogy and chemical composition.
Dilband in Balochistan has 250 million tonnes of iron ore and its iron oxide content varies from 54.03 to 63.66 percent. It is considered better than any other deposit owing to its relatively large quantity, open cast mine ability, favourable location and acceptable grade. Pakistan Steel Mills used Dilband iron ore by blending 10 percent of its quantity with the imported ore. However, excavation at the site was discontinued for some reasons.
Chiqendik in Chagai has about five million tonnes of iron ore with an average grade of 67 to 82 percent of iron oxides. Metallurgical tests prove its suitability for Pakistan Steel Mills to substitute 47 percent of the imported iron ore. It is suitable for the production of 30 percent lower cost iron by using a direct reduction arc furnace process combination.
Pachin Koh in Chagai has about 100 million tonnes of iron ore. Its oxide contents vary from 20.40 to 67.20 percent with an average value of 48.35 percent. Chilghazi river bed deposits in Balochistan are estimated to have about 20 million tonnes in disseminations and 3.36 million tonnes in separate iron ore bodies with an iron oxide content from 10 to 55 percent.
Dammer Nissar in Khyber Pakhtunkhwa has a total of 6.5 million tonnes of minerals containing 50 to 65 percent iron oxide with an average of 48.6 percent. A combination of gravity and magnetic separation can be used to upgrade the ore to feed the steel mills. Langrial in Khyber Pakhtunkhwa contains 30 million tonnes of iron ore with nine to 50 percent iron oxide and the average is about 30 percent. But no production ever commenced from this deposit. Pezu in Khyber Pakhtunhwa has 66 million tonnes of iron ore with 33.3 to 34.4 percent iron content.
Muhammad Yaqub Shah suggested the establishment of an iron ore processing unit attached to every deposit along with proper infrastructure facilities. He said that investors could be invited to invest in the iron ore processing units. He added that the units could also be set up on the basis of a public-private partnership.
He said that it should be made mandatory for Pakistan Steel Mills to buy innate ore on a priority basis. He also stressed the need for alteration of working units at Pakistan Steel Mills according to the innate reserves.
He said that the plant at the steel mills was designed according to the Australian mined ore as Australia coordinated with Pakistan to establish the mills in Karachi. The feed for the mills was imported from Australia. “If the unit is altered according to our mined ore, Pakistan will successfully reduce its import bill,” he added.
Muhammad Yaqub Shah said that Pakistan could also import iron ore from Afghanistan on a regular basis through a proper diplomatic approach. He said that the supply of iron ore from Afghanistan would cost less as Pakistan has a common border with the country.
“The huge potential of iron ore in the country just needs proper exploration and mechanised mining. The already explored reserves must be upgraded to feed Pakistan Steel Mills,” he told WealthPK.
-INP
