Mari Petroleum Company Limited has announced plans to expand its operations into mining for minerals in Balochistan as part of the National Resources (Private) Limited (NRL).
“These projects will involve inter alia, exploration, survey, extraction, excavation, mining, and sale of produced minerals. MPCL, in the initial stages, will acquire approximately up to 20 percent equity share in NRL,” informed MPCL in a statement.
“As part of its long-term growth strategy, MPCL is evaluating multiple opportunities in nearshore and non-core sectors to diversify its business, including mineral exploration in the prospective areas of the country,” it added.
Read more: Mari petroleum diversifies goes into wind power.
As per the company, MPCL has agreed with Y.B. Pakistan Limited, Arif Habib Equity (Private) Limited, Liberty Mills Limited, and Reliance Commodities (Private) Limited. The two have agreed to a joint venture arrangement through a company (National Resources (Private) Limited (NRL)) to start mineral mining projects in Balochistan.
Mari Petroleum seeks to diversify its operations in ‘near core’ and ‘non-core’ sectors, including mineral exploration in the country’s potentially mineral-rich areas. “Core” activities are generally defined as strategic tasks that improve customer value and drive profits. “Non-core” activities are generally defined as day-to-day routine tasks that add little value and are not a profit center.
— GVS (@GVS_News) April 4, 2020
The projects will involve exploration, surveying, extraction, mining, and eventually selling the minerals as per the notification issued to the PSX.
MPCL, in the initial stages, will acquire approximately up to 20% equity share in NRL.
The projects and the joint venture will be subject to various approvals from relevant authorities such as clearance from the Competition Commission of Pakistan, under the Competition Act, 2010. The companies still have to seek licenses and leases for the projects they are about to embark on.
Mineral Prosperity in Balochistan
The province of Balochistan is believed to be rich with reserves of natural minerals. The federal and provincial governments are focusing presently on speeding up the exploration of minerals in the province.
In this connection, National Resources Private Limited is being activated. In contrast, the Balochistan government decided to make two recently established mineral exploration companies autonomous, including the Balochistan Mineral Exploration Company and Balochistan Mineral Resources Company.
The National Resources Private Limited company is being used as a catalyst by the local and federal government to jumpstart mineral exploration and procurement from Balochistan. Balochistan is rich in natural minerals, including petrol, gas, copper, coal, iron, marble, sulfur, chromite, etc.
The Mari Petroleum Company Limited (MPCL) has landed joint venture arrangements with several companies to undertake potential mining projects in the Province of Balochistan.
MPCL is primarily an exploration and production company in the upstream petroleum industry segment with the principal business activities of oil and gas exploration, drilling, field development, production, and distribution of hydrocarbons like natural gas, crude oil, condensate, and LPG. The company operates the country’s second largest gas reservoir at Mari Field, Sindh.
Mari Petroleum inclined towards green energy
In an interview with Global Village Space earlier this year, the then Mari Petroleum CEO Nadeem Ashfaq explained the importance for the company to expand into non-core sectors and expand the core businesses by also going to international markets.
When asked if one of their objectives was to create an international presence, the CEO said that one of the objectives was to diversify into ‘midstream and downstream’ energy sectors. He also indicated an inclination towards green energy, renewables and other areas.
GVS News Desk