KARACHI: Pakistan has sought Saudi investment to set up the country’s first metal refinery for the processing and export of indigenous mineral resources, officials said in a report released late Wednesday.

Pakistan Petroleum Limited (PPL), the state-owned oil and gas exploration and production giant, floated the proposal for the metal refinery during the visit of Khalid bin Saleh Al-Mudaifer, Deputy Minister of Energy, Industry and Mineral Resources of Saudi Arabia, last month. 

The Saudi minister also held a series of meetings with the Pakistani officials in this regard.

“PPL’s presentation was a proposal to setup the first metal refinery in Pakistan for Lead and Zinc using indigenous resources of Pakistan with potential of annual export revenues of around $200 million,” a report published by the PPL stated on Wednesday.

Moin Raza Khan, Managing Director and CEO of PPL informed the visiting delegation about the operations and future strategies along with an orientation of Bolan Mining Enterprises (BME) a joint venture between southwestern province of Baluchistan and PPL, each having 50 percent shares.

BME, the mining arm of PPL operating in mineral rich province of Baluchistan over the years, has met nearly 90 percent of the barytes requirement of the oil and gas exploration industry in Pakistan.

A barytes mining lease spanning 316 acres for exploration of barytes in Gunga area near Khuzdar, Balochistan, originally hosting proven reserves of 1.28 million tons was granted to BME by provincial government in 1974. The lease is valid up to 2033. With recent drilling in the area, inferred reserves of 40 million tons have been established.

BME has a geographically diversified portfolio of baryte, iron ore, lead-zinc and other mineral resource assets and strategically positioned to serve the national network of oil and gas sector and the external global market.

Earlier this week on Monday CEO of PPL Moin Raza Khan at the Annual General Meeting (AGM) of shareholder shared his future plans that also includes company’s expansion into mining operation to explore the untapped potential of the country as part of diversification strategy.

“For this the company is finalizing the feasibility study of barytes, lead and zinc project to further expand mining portfolio,” said Khan.

He said the meeting with the Saudi delegation was aimed at inviting them for investing in mining sector of the country.

During the visit of Saudi crown prince Muhammad Bin Salman, in February this year, Pakistan and Saudi Arabia signed several investment agreements worth $21 billion.

The Saudi investment consists of Aramco oil refinery project that would be constructed in Balochistan province at the cost of $10 billion which will also house a $1 billion petrochemical complex project at Gwadar deep seaport. 

Saudi Arabia also pledged to invest $2 billion to develop Pakistan’s mining sector.

The PPL, which is also operating in Iraq as first Pakistani public sector company, lately announced its highest-ever profit- after-tax of PKR 61.6 billion for 2018-19.