KARACHI: Lucky Cement is considering an investment of up to Rs. 1.2 billion in National Resources (Private) Limited (NRL) to support mineral exploration activities in Balochistan. The proposed investment is aimed at advancing projects focused mainly on copper and gold.
NRL is involved in the exploration and development of mineral resources in the province. The company also holds exploration rights for lead, zinc, and other minerals. Lucky Cement currently owns a 33.33 percent stake in NRL.
NRL has been carrying out exploration activities in the Chagai region. The company has reported copper and gold mineralization across parts of its licensed exploration area. Several prospects have been identified, while drilling activities are being conducted to assess the potential of the deposits.
The exploration programme is expected to be a long-term undertaking. According to company management, exploration and feasibility work could take three to five years. The proposed investment is therefore focused on developing potential mining projects rather than immediate commercial production.
Lucky Cement is also expanding its renewable energy capacity at its Karachi plant. The company plans to add 15 megawatts of solar power, which would increase its total installed solar capacity to 89.3MW.
The Karachi facility also has 29MW of wind power. Renewable sources currently meet around 55 percent of the plant’s energy requirements, according to management.
The company said greater reliance on renewable energy can help lower energy costs and reduce its carbon footprint. It can also provide some protection against fluctuations in energy prices.
Lucky Cement is continuing efficiency measures at its Karachi plant as well. The company has installed UTIS technology across all four production lines to improve production efficiency and reduce coal consumption.
International operations remain another area of expansion. Lucky Cement has around 15.6 million tons per annum of cement capacity in Pakistan and another 5 MTPA internationally.
Its Congo operation is currently operating at high utilization. The company has started work to increase capacity from 1.6 MTPA to 3.2 MTPA. The expansion is targeted for completion within about 18 months.
The proposed investment in NRL adds another long-term growth area for Lucky Cement. The company has indicated that strong cash generation provides flexibility for future investments and contingencies, while further domestic growth is expected to remain largely organic.
