Pakistan Petroleum Limited (PPL) on Monday announced that the Balochistan government has granted the company a large-scale mining lease for lead and zinc in the Khuzdar district.

The Pakistani state-owned petroleum company shared the development in a notification to the Pakistan Stock Exchange (PSX).

“We are pleased to disclose that the company has been granted a large scale mining lease for lead and zinc, in district Khuzdar, by the Government of Balochistan and in this regard a large scale mining lease deed has been executed, for large scale mining and establishment of a lead-zinc processing plant in district Khuzdar, Balochistan over an area covering 30 Sq.km (7413.16 acres),” read the company’s notification.

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PPL informed that the lease is valid for a term of thirty years and shall be operated by Bolan Mining Enterprises. It will be a 50:50 joint venture between PPL and the Balochistan government.

“The estimated reserves of barite, lead and zinc are 69 million tonne as per bankable feasibility by a renowned German consultant, over a portion of the leased area,” PPL said.

The project would entail open pit mining with an ore beneficiation/process plant. PPL said that positive cashflows are expected from the third year while the estimated project life is 32 years.

As per the company’s latest financials, PPL sales revenue during the first quarter 2021-22 ending on September 30, 2021 stood at Rs43.154 million as compared to Rs 39,226 million in the corresponding period last year, showing an increase of Rs3,928 million.

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The increase in sales revenue was led by rise in positive variance on account of price (including change in exchange rate) amounting to Rs7,152 million.

Meanwhile, the profit after Tax of the company stood at Rs16,991 million in the first quarter, up 18% as compared to Rs14,351 million in the same period last year.