Pakistan Petroleum Limited (PPL), a leading exploration and production company in Pakistan, has broadened its mining collaboration with the Government of Balochistan (GoB) by signing an amendment to their 2004 operating agreement concerning the Barytes Project.
The company announced this development in a notice to the Pakistan Stock Exchange (PSX) on Thursday. “We are pleased to inform that Pakistan Petroleum Limited (PPL) has executed Amendment No. 1 to the operating agreement dated November 15, 2004, for the Barytes Project with the Government of Balochistan (GoB), under a joint venture arrangement for the Baryte, Lead, and Zinc Project (BLZ Project) between the parties.
“This amendment incorporates the area covered by Mining Lease No. 16, executed on December 6, 2021, in the Khuzdar district for lead and zinc, into the existing operating agreement, in addition to the current area for Barytes in Gunga, Khuzdar district,” the notice stated. PPL has also approved funding for a Lead-Zinc processing facility in Balochistan.
The company indicated that through its mining subsidiary, BME, it will serve as the operator of the BLZ Project, and in accordance with the operating agreement, local residents will be prioritized for employment opportunities. BME is a joint venture between GoB and PPL, with both parties holding a 50% working interest as per an agreement signed on June 1, 1974, for a duration of 30 years to mine, process, and market baryte deposits in Gunga near Khuzdar, along with other minerals in Balochistan.
“Both PPL and GoB will provide funding in proportion to their respective equity shares in the BLZ Project,” the notice added, stating that the company will arrange financing for GoB’s capital contribution through its cash flows. A bankable feasibility study, adhering to international standards, was completed in 2019 by DMT, Germany, and the BLZ Project is currently in the development phase.
