ISLAMABAD: Mining outcrops can fetch economic benefits provided the government helps establish processing units, or the mine owners do it themselves.
This was stated by Abdul Bashir, chief geologist with a Balochistan-based mineral exploration firm.
Talking to Media, he said setting up processing units would go a long way in mechanising the mining, developing the recipient areas and creating sources of assistance for locals.
He pointed out that no element or metal was without 90% raw material. “By using the conventional methods, only 5% to 10% recovery is possible. Adding the transportation charges, and additional direct and indirect labour/costs makes the recovery process expensive. To avoid such a situation, it is necessary to establish a mineral processing/grading/upgrading or washing unit near the mining area.”
Talking about a processing unit established in the Muslim Bagh area of Balochistan, Bashir said that the viability of chromite mined from there before the plant was set up was about 25% to 30%. “Now its viability has increased to 45%.”
He said in Pakistan, only at the Saindak copper/gold project, a large smelter, smasher and processing facility was available. “A large-scale processing/upgrading unit in Chagai can improve the usual grade of mining outcrop from 45% to 60%.”
The mining expert said setting up a refinery/smelter was a large-scale project that cost billions, which only the government can afford. “The refinery requires plenty of water and ample land and can be established in Gwadar and Port Qasim. However, a smelter takes far less space.”
Bashir said that small units cost less, and any miner/investor or a combination of them can help set up these plants. “The owner of a chromite mine can establish a processing unit. After establishment, he can earn 5% to 10% royalty on it as prices of products would increase after value addition.”
He said if the government helped establish a mining unit, it can get a reasonable quarterly or per annum profit. “This kind of initiative will greatly change small-scale mining operations.”
Talking to Media, Imran Babar, a miner and geologist, said that the government should help small-scale miners in establishing mining units. “Value addition to the produce will fetch more profits and create new value chains.” –INP
