Karachi, April 10, 2025 — Pakistan Petroleum Limited (PPL) has officially expanded its footprint in the mineral sector by signing Amendment No. 1 to the Operating Agreement dated November 15, 2004, with the Government of Balochistan (GoB). This marks a strategic enhancement of the ongoing Baryte, Lead, and Zinc (BLZ) Project, solidifying public-private cooperation in one of Pakistan’s most resource-rich provinces.

Mining Lease Integration Expands Project Scope

The amendment incorporates Mining Lease No. 16, granted in December 2021 for Lead and Zinc in District Khuzdar, into the existing agreement for the Barytes-rich Gunga area. The integration paves the way for unified exploration, development, and extraction of key industrial minerals critical for domestic industries and exports.

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BME Named Operator of Expanded BLZ Project

As part of the revised arrangement, the Balochistan Minerals Exploration Company (BME), a GoB-owned entity, will act as the Operator of the expanded BLZ Project. This reinforces the province’s active role in managing and leveraging its natural resources.

The updated agreement also prioritizes employment opportunities for local communities, aligning with national and provincial development goals aimed at inclusive economic growth.

Financial Commitments and Feasibility

Funding responsibilities will be shared between PPL and the Balochistan Government, based on their equity participation. While PPL will utilize internal cash reserves to fund its share, the provincial government will contribute through a dedicated financing structure.

A Bankable Feasibility Study (BFS) carried out by DMT (Germany) in 2019 underpins the project’s long-term viability and economic promise.

Economic Impact and Project Outlook

Currently in its development phase, the BLZ Project is projected to generate annual revenues of $144 million, with a Net Present Value (NPV) of $356 million over its anticipated 32-year lifecycle.

This expansion signals a robust commitment to mineral resource development in Balochistan, unlocking value for stakeholders while contributing to regional and national economic stability.