Recodec Copper and Gold Mining; Issues & Recommendations

Literature Review

Literature review is a tedious part of any research. It is on one side very informative but on the other side quite time consuming. In the instant paper literature review is based on the details given ahead. The determinants of the Government’s role are given in “Balochistan Minerals Rules, 2002 — To Implement Provisions of National Mineral Policy (NMP) 1995, (Government of Balochistan, Department of Mines and Minerals, March 8, 2002 these rules are directly related to mineral in Balochistan. Pakistan and gulf economist (Jan 3, 2010) Page no 6 topic recalling economic history gives a complete biopsy of Pakistani economy and issues related to mining sector.http://www.docstoc.com/docs/14820293/A-shortreport-on-pakistan-development-issues-Its-Impacts- on-Pakistans-mining-Industry gives details about the role of mining in development and pertinent issues. The Express Tribune Publication, June 28th, 2010 has focused the socio-political and socio-economic aspects of Recodec copper and gold mining issues. http://pakistanization.wordpress.com/2008/10/28/topic is save Pakistan has also compiled a study on the instant case. Pakistan Institute of Development Economics Islamabad has also spotlighted the mining sector in various research papers.

Research Methodology

As evident from the nature of study, both the primary and secondary sources of data were to be used. For collection of the primary data, visits to concerned departments/institutes were held. Particularly the concerned desk of Mines & Minerals Department Government of Balochistan was contacted for data/information. The staff working in the sector was interviewed on phone and relevant record was obtained via email. For collection of the secondary data, relevant material was obtained from different sites on the internet, journals and other research works which are mentioned in the bibliography.

For the purpose of analysis, meetings with concerned personnel were held, interviews conducted and information gathered. Balochistannis taken as a universe for the study. The rationale behind selection of Balochistan as an option and opportunity is to save the data of being contaminated from any kind of bias. The criterion for selection of sampled province was its potential in mines and minerals and associated controversies. Microsoft Excel and Word Sheets were used as analytical techniques in the study. The data was subsequently arranged into tabular form and hence converted to information. Interpretation and comparison was based on the information obtained.

Limitations of the Study

As a limitation, discrepancy was found in data/information collected from various offices/sites. To overcome the issue of discrepancy in data at various sites, reliance at most, was made upon the data available on official websites/government departments.

Organization of the Paper

For convenience, structure of the paper and its various sections are highlighted in a due sequence as given below;

  • Mines & Mineral Potential of Pakistan, Background of the issue, Factors Behind the issue, followed by Impact Analysis
  • The Government’s Role, and Challenges ahead &comparative analysis
  • Recommendations, conclusion and bibliography

Mines & Mineral Potential of Pakistan

An Overview:

Pakistan is gifted with a wide range of geological potential. The country possesses broad assets of mineral deposits such as coal copper, gold, limestone etc.  However, unlike other developing countries with good mineral endowment, we have not yet been able to encourage growth and alleviate poverty by exploiting our natural resources to the maximum degree possible. The development of our mineral resources has been limited to many quarries producing industrial minerals of limestone, rock salt, marble, gypsum and a modest amount of coal for internal power generation. Our mineral resources are enormous and emerging as a promising country for exploration of mineral deposits. Based on available information, country’s more than 6, 00, 000 sqkms of outcrop area demonstrates varied geological potential for metallic / non-metallic mineral deposits. Exploration by government agencies as well as by multinational mining companies and various regional geological surveys, conducted in the recent past have confirmed the great potential of Pakistan in the metallic minerals like copper, gold, silver, platinum, chromites, iron, lead and zinc. Regarding industrial minerals, there is a vast potential of multi- coloured granite, marble and other dimensional stones of high quality for export purposes.

Currently about 52 minerals are under exploitation but on a small scale. The major production is of coal, rock salt, and other industrial and construction minerals. At this time, the value addition in the mineral sector is mainly concentrated in five principal minerals, namely, limestone, coal, gypsum, sulphur, crude oil, and natural gas.

The current contribution of mineral sector to the GDP is about 0.5% and likely to increase considerably on the development and commercial exploitation of RecoDiq copper deposits, Duddar Zinc lead, Thar coal and Gemstone deposits.

The country’s mining industry is dominated by the public sector through Federal and Provincial development corporations. The public mining corporations are: Punjmin involved in the mining of 8 minerals (with a mine output of less than 300,000 tones for each of seven mines and 1,215,634 tones for building material), Pakistan Mineral Development Corporation in 11 minerals, Federally Administrated Tribal Areas Development Corporation in 10 minerals (with an annual high single mine output of 319,000 tones for limestone), Balochistan Development Authority in fluorite, Khyber Pakhtunkhwa Development Authority in 4 minerals and Azad Kashmir Mineral and Industrial Development Corporation in 12 minerals With 4,873 and Pakistan Steel in mining limestone (204,921 tones).Foreign investors are mainly from China due to their historic political ties with Pakistan. Consequently there has been little or no modern exploration, and what development has occurred has been restricted to simple technologies, without the benefit of the private sector and foreign investors with modern management, capital and technical knowhow.
Consequently mineral exploitation contributes only 0.5% of GDP. Realizing the vast potential of major reserves, there is great opportunity for the multinational companies to invest in this sector, which will be beneficial for the economy and the investors in the long run.

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