Karachi, February 7, 2024 – Pakistan Petroleum Limited (PPL) has taken a significant step towards supporting the development of the Balochistan region by deciding to fund the government’s share of capital contribution in the BLZ Project.
In a communication to the Pakistan Stock Exchange (PSX), PPL announced that its Board of Directors, in a meeting held on February 3, 2024, has given its in-principal approval for funding the Government of Balochistan’s (GoB) share of capital contribution in the BLZ Project. This strategic decision underscores PPL’s commitment to fostering economic development and collaboration in the Balochistan province.
The company outlined its plan to arrange funding for GoB’s capital contribution through a financing arrangement, utilizing its own cashflows. The debt servicing for this funding will be facilitated through the Government of Balochistan’s share of project cashflows. To formalize this arrangement, a Financing Agreement will be executed by PPL with the GoB, subject to obtaining all necessary approvals. These include approvals from the Balochistan Provincial Cabinet and the shareholders of the company.
PPL had previously disclosed the grant of a large-scale Mining Lease for Lead and Zinc in District Khuzdar by the Government of Balochistan in a letter dated December 13, 2021. The company had also highlighted the execution of a Large-Scale Mining Lease Deed, paving the way for large-scale mining activities and the establishment of a Lead-Zinc processing plant in District Khuzdar, Balochistan – collectively known as the BLZ Project. The mining lease covers an expansive area of 30 square kilometers (7413.16 acres) and is set to be operated by Bolan Mining Enterprises, a 50:50 Joint Venture between PPL and the Government of Balochistan.
By taking on the funding responsibility for the government’s share in the BLZ Project, PPL is demonstrating its commitment to the socio-economic development of Balochistan. The BLZ Project is expected to generate economic opportunities, create employment, and contribute to the overall growth of the region. The funding initiative aligns with PPL’s corporate social responsibility goals and its dedication to supporting sustainable development initiatives in the areas where it operates.
As the financing agreement progresses through requisite approvals, including those from the Balochistan Provincial Cabinet and the shareholders, this partnership between PPL and the Government of Balochistan in the BLZ Project is poised to become a noteworthy collaboration that brings economic benefits to the province and contributes to the broader goals of regional development in Pakistan.
