COPPER ORE RESERVES OF PAKISTAN

Pakistan lies on a massive transcontinental geological feature that runs through the

earth's crust from Eastern Europe right across to Mongolia. It is known as the Tethyan

Magmatic Arc. A Magmatic arc occurs in areas where earth's tectonic plates collide or

sub duct with each other and are often areas of intense volcanic activity. When

continental plates collide in this way, they form major mountain systems such as the

Himalayas, the Alps and the Andes. But what makes Magmatic arcs so special is the

ore deposits found within them —deposits of copper and gold.

Credible international surveys indicate the wealth of resources and suggest that the

area is home to one of the biggest copper reserves in the world with over 2 billion Tons

of copper and 21 million ounces of gold.

Moreover it as also believed, on the basis of surveys carried out by FATA authorities,

that the copper ore reserves in Waziristan are even more than those explored in

Reko Diq, but are not being explored yet due to political reasons.

TYPES OF COPPER DEPOSITS:

VMS (Volcanogenic Massive Sulfide )

Copper occurs in veins, vein lets, fractures and also in disseminated form.

Have high grade but low tonnage.

Copper ore grade ranges from 0.3% to 10%.

Copper deposit of Oman, Cyprus, Bay of Iseland complex are the

examples of this type.

Porphyries

Porphyries are a specific type of ore deposit found at the tip of sub-

ductive arcs all over the world.

They are very large, low-grade deposits with a very high tonnage

and normally contain copper, gold, tin, tungsten and molybdenum.

Copper ore is disseminated in the host rocks.

Ore grade generally ranges between 0.2% - 1%.

Most of the world's copper comes from such deposits located

primarily in South America, New Guinea, Indonesia, the United States,

and Canada.

COPPER ORE IN PAKISTAN

1. SAINDAK-BALOCHISTAN

The discovery of copper deposits at Saindak was made in the 1970s in collaboration

with a Chinese engineering firm. The Saindak Copper-Gold Project was set up by

Saindak Metals Ltd, a company wholly owned by the government of Pakistan, by the

end of 1995 at a cost of Rs.13.5 billion

Location

Saindak Copper-Gold Mine is located in Saindak town,

District Chagai Balochistan, Pakistan.

The mineralized area is easily accessible through fair weather roads

Mineralogy

The Saindak ore contains on average 0.5 gram of gold per tone and 1.5 grams of

silver per tone.

Reserves

The Saindak project was based on estimated ore reserves of 412 million tones.

The mine is reported to have produced about 50,000 tones since October 2003.

According to official estimates, the project has the capacity to produce 15,800

tones of blister copper annually, containing 1.5 tones of gold and 2.8 tones

of silver.

..

2. REKO DIQ – BALOCHISTAN

The Tethyan Magmatic Arc is one of the least explored of the world's major copper

belts. Pakistan lies on this copper belt, which runs through Baluchistan’s 'tail end' —

an area which is also unfairly known in the West as 'The Devil's Triangle' as its three

sides border Iran, Afghanistan and Pakistan.

Reko Diq literally means "sandy hill" in Balochi. It is actually an ancient volcano that

has eroded over time to form a few low hills that lie in a roughly circular shape and is

approximately 10km in diameter.

LOCATION OF REKO DIQ

Reko Diq is a remote location in the North-West of Chagai district. Chagai is a

sparsely populated western desert province of Balochistan. It is mostly low relief

and thinly populated desert. The weather of Chagai ranges from very hot

summers of 40-50°C to very cool winters of up to -10°C with less than 40 mm

precipitation (winter rain and minor snow). It also exhibits periods of high wind

and dust/sand storms which have a demobilizing impact on the local activities

and trade. Access to the Chagai district is via the Zahidan - Quetta highway also

known as the London Road.

The Reko Diq area is part of the Tethyan Magmatic Arc, extending through

central and southeast Europe ( Hungary, Romania, Bulgaria, Greece) Turkey,

Iran and Pakistan through the Himalayan region into Myanmar, Malaysia,

Indonesia and Papua New Guinea. It contains wealth of large copper-gold ore

deposits of varying grades.

The eastern and central sections of the belt are well recognized hosting world

class mineralization such as Grasberg, Batu Hijau in Indonesia, Ok Tedi in

Papua New Guinea and Sar Cheshmeh in Iran. Whereas in the eastern Europe it

host world class porphyry/epithermal cluster of Bor, Majdanpek in Serbia and

more recent developments include Skouries and Olympias Greece, and Copler in

Turkey.

Reko Diq area is one of many eroded remnant volcanic centers in the Chagai

volcanic chain of mountains which runs in an east west line across Balochistan

between the Quetta to Taftan railway and the border with Afghanistan. GOP has

identified a large low grade copper-gold resource at Reko Diq.

REKO DIQ RESOURCE

The project has an estimated mine life of 56 years. A large low-grade copper

porphyry deposit, Reko Diq has total mineral resources of 5.9 billion tons of ore

with an average copper grade of 0.41 per cent and gold grade of 0.22 g/ton. It

contains 28-31% copper and 7-22 g/ton gold The economically mine able portion

of the deposit has been calculated at 2.2 billion tons, with an average copper

grade of 0.53 per cent and gold grade of 0.30 g/ton. The annual production is

estimated at 200,000 tons of copper and 250,000 ounces of gold contained in

600,000 tons of concentrate. In order to achieve this production rate

approximately 110,000 tons of ore shall be processed daily

According to the extensive technical and financial studies undertaken, in order to secure

optimal economies of scale efficiencies, and lower mining and processing costs, a large

scale, state of the art mining and processing unit is required at Reko Diq.

MINING PROJECT

CURRENT STATUS OF REKO DIQ PROJECT

GOP has completed an extensive exploration program at Reko Diq with more than

300,000meters drilling comprising mainly diamond and reverse circulation drilling. A

bankable Feasibility Report based on extensive world class engineering, technical and

financial studies has been finalized. Environmental and Social Impact Assessment

(ESIA) report is also in final stages.

FUTURE DEVELOPMENTS: SETUP OF MINING OPERATIONS

The next steps to advance the project will be taken by GOP as soon the mining lease is

granted, followed by project financing and construction of ancillary infrastructure to

make the mine operational.

The GOP Reko Diq Project shall consist of 4 main operations components:

1. An open-pit mine.

2. A processing facility..

3. A concentrate pipeline to transport the product from the mine site to the port of

Gwadar, and a dedicated marine terminal facility at the port for storage and

transfer to shipping vessels for supply to smelters throughout the world..

4. A project village for employees.

MINING TECHNIQUE USED

The mining operation at Reko Diq is modeled on an open pit mine utilizing a

conventional truck and shovel technique. This means that giant mechanical shovels

shall be used to dig out the copper ore which shall then be loaded onto 360 ton trucks

that will then haul tons of copper ore on a daily basis from the mine to the processing

facility. At the processing facility the rocks (ore) shall be crushed in giant crushers. This

crushed ore shall then be transferred to a fine-grinding stage where it will be converted

into a powdered form. This powder, containing small quantities of copper and gold shall

pass through a separation process called flotation, resulting in 30% concentrated slurry

of copper and traces of gold.

This concentrate is the final product of the Reko Diq Mining Project which shall then be

transported for further processing to extraction & smelting units.

MINING TECHNOLOGY DEPLOYED

The Reko Diq mine will employ state-of-the-art mining equipment, support systems and

maintenance practices. To operate this project latest technological innovation will be

introduced, putting the Reko Diq project at the cutting edge of technology. This will

include360 tons haul truck equipped with computer controlled engine management

systems, and the Reko Diq process plant will be one of the only few hard-rock mines in

the world to apply High Pressure Grinding Rolls (HPGR) between crushing and milling.

Use of latest technology is critical to create efficiencies in the processes to make Reko

Diq a long term economically viable project.

TRAINING AND TECHNOLOGY TRANSFER

Significant skill and technology transfer shall take place during the life of the mine in

Balochistan. GOP is committed to skill development and training of local employees to

ensure that indigenous capabilities develop along with the technology transfer. GOP

has on-site training programs for its employees and off-site training opportunities are

provided within training institutes in Pakistan and also abroad. GOP has an integrated

training program comprising a basic skills development module and a specialist

vocational training module.

ANCILLARY INFRASTRUCTURE   DEVELOPMENT  

i.

i. Power plant

ii. Pipeline

iii. Port

iv. Project village

3. WAZIRISTAN COPPER DEPOSITS

These deposits are of Volcanogenic Massive Sulfide type & Contain workable copper

ore grade.

Occurrences

Khaddar Khel,Ismail Khel,Degan-Pai Khel and Shinkai areas. Shinkai area is

considered as the most promising area.

Location

Copper bearing area lies at a distance of about 21 kilometers west of

MiranShah,the head quarter of North Waziristan.

The mineralized area is easily accessible through fair weather roads.

Geological Setting

 

Copper ore occurs in ophiolites, comprising ultramafics, volcanic

basalts, pillow lavas, limestone and jasparits.

Mineralization occurs in the volcanic rocks of the ophiolites.

Oxidized iron caps or gossans represent the mineralized zones on

the surface.

Copper ore is thought to be of volcanogenic massive sulphide type

This type of deposits are known to have workable potential of copper and

other allied metals like lead, zinc, Silver, cobalt, iron and sulphur as additional

by products.

Mineralogy

Both primary and secondary sulfides and oxides ore occur in Waziristan.

Primary minerals Chalcopyrite (CUFe S2).

Secondary mineral Azurite (2CU CO3.CU (OH) 2

Malachite (CUCO3.CU (OH) 2.

  Covellite (CUS)

Chalcocite (CU2S)

Tenorite (CUO)

Ore grade

CU -------- 0.8%.

Zinc ------- 0,17%

 

Nickel ------ 0.14%

 

Cobalt ------ 0.12%

 

Silver ------- 1 gm/ ton

 

Sulfur ------ 10%

Reserves - 700x400 sq.m area

Proved on the basis of 22drilling holes data. 8 million tons

Estimated on the basis of IP data. and 5 bore 27 million tons

holes data Up to depth of 150 meters.

Inferred on the base of IP geophysical survey

at the depth of about 300 meters. 27 million tons

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Total 62 million tons