ISLAMABAD: Pakistan’s largest Chinese-operated copper and gold mining project has warned that worsening security conditions in Balochistan could force it to suspend operations within a month if disruptions to the transportation of essential supplies continue.
According to a Financial Times report, Saindak Metals Limited (SML) has informed the Ministry of Energy that the deteriorating law and order situation in the province has severely affected the movement of critical project cargo.
In a letter to the ministry, the company’s managing director warned that continued logistical disruptions could make uninterrupted operations at the Saindak Copper-Gold Project unsustainable.
“The prevailing law and order situation in the province has severely affected the transportation of essential project cargo. If this situation continues unabated, there is a serious likelihood that the project’s operations may be forced to cease within a month due to the non-availability of essential production materials and logistical support,” the letter stated.
Saindak Metals Limited is a public sector company responsible for the Saindak Copper-Gold Project, Pakistan’s first large-scale mining venture, developed in partnership with the Resource Development Corporation (RDC). The project was constructed by China’s Metallurgical Corporation of China (MCC) under a turnkey contract signed in 1992, with commercial operations originally planned to commence in 1995.
According to the Financial Times, citing official statistics, the Saindak project accounted for the majority of Pakistan’s approximately $750 million worth of copper product exports last year.
The report said the primary challenge facing the project is the increasingly hazardous road transportation network, which has disrupted the delivery of essential production materials and operational supplies.
The warning represents another setback to Pakistan’s efforts to develop Balochistan’s vast mineral resources and position the province as a major hub for mining investment and export-led economic growth.
