Foreign investors who planned to set up export-oriented mineral exploration and allied facilities in the proximity of Sonmiani are planning to roll back due to federal government''s move to construct country''s Allah Din Port.
A few weeks ago, the federal government imposed ban on sale, purchase and lease of various properties in Sonmiani to avoid artificial price hike of land. Presently, the ministry of ports and shipping is conducting site survey of the country''s second free port (Allah Din Port) some 75 kilometres west of Karachi.
The initiative has created uncertainty among foreign companies involved in the exploration of minerals for the last few years and the situation has compelled them to opt to wind up their operation.
Recently, the Directorate General of Mines and Minerals, Balochistan has issued a notification to a Dubai-based company ''Gulf Minerals fze'' stating that "Recent changes in the scenario/strategic importance of the area, the undersigned is pleased to withdraw the official Exploration Lease (EL) issued letter no. EL (19) 2314 dated 01-04-2006, in the greater national interest of the province and the country as well."
The Gulf Minerals considers the policies and firm stance of the federal government to provide better opportunities to foreign investors and firm assurances of policies, which were both stable and conducive for investment.
The company preferred to invest in Balochistan due to its great prospects of industrialisation based on the natural resources, a source said.
The company managed successfully to form a syndicate of the expatriates and others to invest as well as planned the future prospects of investment in Pakistan. Hence it launched a project with the pre-leased investment of $500,000.
The source said, "we spotted huge reserves of the Heavy Mineral Sands along the coastal belt of Balochistan starting from Sonmiani, some 75-kms from Karachi to the Delta of Phor River (180-kms from Karachi). The company requested the government of Balochistan to grant the Exploration License (EL) and to verify the reserves and quality.
The provincial government granted EL vide letter No EL (19) 2314 on 01-April 2006, or the Rutile, Ilemenite, Zircon, Garnet and Iron and associated minerals covering area over 978 square kilometres. Recently, the company unexpectedly received a notification from the DG Mines and Minerals Office that the EL issued to the company was being cancelled and rejecting their application for a mining lease without notice.
The source said, "we do not understand is there any prospect of that particular land and minerals resources other than its only true and proper purpose, which is mining of minerals for the nation''s interest."
The company started the project of the minerals sand to bring in opportunity of industrialisation based on natural resources with the investment of $199 million. This particular project is 100 percent export-oriented with minimum export of Rs 500 million per year.
Since April 14, 2006, the company started conducting Geo-Topographical Survey and Exploratory Drilling in its licensed area. The investment in the drilling, survey, testing, pilot plant setting, planning, consultants hiring, offices in Karachi and Gwadar, machinery and other related tasks cost around $5.5 million.
The source said, "we are at an advance stage of procuring modern technology and machinery along with a lab development for this purpose. The company hired the services of the mining experts from Pakistan and international market and hired auditors also.According to the plan, the company has to set up permanent and 100 percent export-oriented industries in the country that includes, establishing and managing the processing units at the mines site and in Karachi.
The company also procured machinery for mining, earth moving, processing, logistics and processing chemicals, etc, from local and international market."
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