Chinese mining firm gets 15-year lease for copper, gold exploration in Saindak
Monitoring Report
KARACHI: Pakistan has allowed China’s MCC Resources Development Company (MRDL) to explore and develop eastern mines under the Saindak Copper-Gold Project for another 15 years, officials told Arab News on Wednesday.
A small town in Balochistan’s Chaghi district, Saindak has huge mineral resources. The Chinese company will invest $45 million to explore copper and gold in the East Ore Body (EOB) area of the town where 278 million tons of deposits are estimated.
“The money will be used to purchase machinery and develop the mines after the government of Balochistan has given its consent to extend our lease for the next 15 years,” Humayun Mehmoodi, MRDL vice president, told Arab News. “The current machinery needs to be replaced as it has been in use since 2002.”
Last Friday, Balochistan’s provincial administration informed the federal government that it had extended the stay of Metrological Construction Company of China (MCC) that has an agreement with the federally-owned Saindak Metals Limited (SML), making it possible for the foreign firm to continue the exploration and development work in the area.
Locally registered as MRDL, the MCC has been operating in Balochistan’s remote town since 2002, extracting significant amount of mineral resources from the region.
“The deposits in South and North Ore Body have almost depleted and soon there will be nothing to explore, so we approached the government to get the lease and agreement extended for the development of Eastern Ore Body,” Mehmoodi informed.
“The EOB has 278 million tons of reservoirs. It is the third and the largest reservoir with major content of copper. The mining life of the EOB is around 19 years,” he added.