PAKISTAN
Pakistan Petroleum Limited (PPL) has informed the Pakistan Stock Exchange (PSX) that it has executed Amendment No. 1 to the Operating Agreement dated November 15, 2004, with the Government of Balochistan (GoB) for the Barytes Project. This amendment marks a significant development under the joint venture arrangement for the Baryte, Lead, and Zinc Project (the “BLZ Project”).
As per the amendment, the area under Mining Lease No. 16 — granted on December 6, 2021, for Lead and Zinc in District Khuzdar — has now been incorporated into the existing Operating Agreement, which already covered the Barytes-rich region of Gunga in the same district.
PPL will operate the BLZ Project through its mining subsidiary, Balochistan Mineral Exploration Company (BME), and will prioritize employment opportunities for local residents, in accordance with the terms of the agreement.
Both PPL and GoB will contribute funding proportional to their equity shares in the joint venture. PPL will also arrange financing for GoB’s share of capital investment using its internal cashflows.
A Bankable International Standard Feasibility Study was previously completed in 2019 by M/s DMT of Germany, and the project has now entered the development phase. The BLZ Project is expected to yield an average annual revenue of USD 144 million and an NPV of USD 356 million over an estimated mine life of 32 years.
This announcement has been made in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1 of the Pakistan Stock Exchange Limited Regulations. – ER
