Mining Sector of Pakistan

-   Pakistan possesses a varied mineral resource structure relative to
    different geographical territories, which includes zones hosting
    several types of minerals and precious stones.

-   Presently identified mineral resources in the country are mainly
    confined to the Balochistan, Sindh, and N.W.F.P. provinces, which
    consists of large resources of lignite coal, crude oil, natural gas,
    porphyry copper-gold, iron ore, lead, zinc, gypsum, rock salt,
    limestone, uranium, and precious/semi precious stones.

  -------------- ----------- ------------- ------------- ---------------- ------------- --------------
  **Extraction                                                                          
  of Principal                                                                          
  Minerals**                                                                            

  **Minerals**   **Units**   **2004-05**   **2005-06**   **July-March**                 **Percentage
                                                                                        %**

                                                         **2005-06**      **2006-07**   

  Coal           Million     3.4           3.9           2.5              2.8           3.7
                 Tons                                                                   

  Natural Gas    000 MMCFT   38.0          39.6          29.7             30.1          1.3

  Crude Oil      Mln.        24.1          23.9          17.9             18.2          1.7
                 Barrels                                                                

  Chromites      000 Tonnes  46.3          52.5          51.0             60.0          17.6

  Dolomite       000 Tonnes  199.6         184.0         133.0            167.7         26.1

  Gypsum         000 Tonnes  552.0         601.0         463.0            478.0         3.2

  Limestone      Mln. Tonnes 14.8          18.4          12.7             15.9          25.2

  Magnetite      000 Tonnes  3.0           2.4           1.0              1.3           30.0

  Rock Salt      000 Tonnes  1,648.2       1,859.0       1385.0           1,396.0       0.8

  Sulphur        000 Tonnes  24.1          24.7          17.9             19.2          7.3

  Baryte         000 Tonnes  42.0          52.1          39.0             40.0          2.6
  -------------- ----------- ------------- ------------- ---------------- ------------- --------------

Source: Economic Survey of Pakistan 2006-07

-   The local mining sector needs massive investment. Over the years,
    the Government of Pakistan (GOP) has allocated diminutive
    development funding (varying from --0.45 percent to 2.46 percent of
    the total public sector expenditure on annual basis) for the
    development of this sector. In 2004, the GOP launched a five-year
    mining development program to uplift the sector growth through
    public-private sector collaborations, primarily focusing on
    infrastructure development, human resource training, and bringing
    foreign investment in to this sector.

-   According to the local industry experts, during FY 2006-07 (Pakistan
    fiscal year runs from July 1 through June 30), the total size of the
    local mining sector is approximately \$2.2 billion. During the year,
    the local mining sector grew approximately by 5.6 percent as
    compared to 4.58 percent during the last year. This increased
    expansion was largely propelled by strong growths in minerals
    especially magnetite (30 percent), dolomite (26.1 percent),
    limestone (25.2 percent), and chromites (20 percent).

-   Pakistan's mining sector offers substantial business opportunities
    for the U.S. manufacturers and exporters of equipment and services
    related to the following sub-sectors:

    -   Underground mining

    -   Surface mining

    -   Personal and material safety

    -   Material processing

    -   Equipment maintenance

    -   Exploration and new mine development

    -   Human resource development