Bolan Mining Enterprises

Bolan Mining Enterprises (BME) is a joint venture between the Government of Balochistan (GoB) and Pakistan Petroleum Limited (PPL), each sharing a 50 percent working interest. BME was formed through a joint venture agreement signed on June 1, 1974 between the two for 30 years to mine, grind and market baryte deposits in Gunga near Khuzdar and other minerals in Balochistan. PPL was designated as operator under this agreement which was renewed in June 2004 for another three decades.

BME operates a grinding mill with 50,000 tonnes capacity per day for production of barytes in line with the specifications of the American Petroleum Institute. Another mill with 90,000 tonnes capacity per day will soon be added to the existing facility.  

A mining lease spanning 316 acres for exploration of barytes in Khuzdar, originally hosting proven reserves of 1.5 million tonnes, was granted to BME by GoB in 1974.

Over the years, BME has met 80 percent of the barytes requirement of the oil exploration industry in Pakistan.

In 2002, GoB also granted a mining lease over an area of 13,660 acres in Dilband for iron ore exploration to BME. Fine iron ore from Dilband was supplied to Pakistan Steel Mills during 2003 and 2004 under a sale/purchase agreement. But supply was discontinued when the purchase agreement was not renewed.

BME also holds two mining licenses, valid until 2026, in the northwest of Nokkundi for mining of iron ore. Considering the demand for commercial sales of iron ore products from Nokkundi, various studies were undertaken to set up a beneficiation plant.

Beneficiation studies on laboratory and pilot plant scale, concluded in April 2006, establishing that concentrate of acceptable quality could be produced from Nokkundi ore. This was followed by engineering study in 2008 for setting up a beneficiation plant with processing capacity of 0.5 million tonnes run of ore annually. Later, the study was revised and updated for annual processing of 1 million tonnes instead.

Mine planning, designing and detailed engineering studies have recently been initiated for mining of iron ore on scientific basis to optimize production from Nokkundi reserves. The study will be completed by the end of 2011. The project is expected to start commercial production by 2012- 2013.

An exploration license for lead and zinc, covering an area of 177,597 acres, in Khuzdar was granted to BME in March 2008. Plans are underway to start drilling. Initially, an approximate depth of 2,100 meters would be required to establish the continuity of ore in dip and strike directions.