Karachi, April 10, 2025 — Pakistan Petroleum Limited (PPL) has taken a major step forward in expanding its mining footprint in Balochistan, announcing the execution of Amendment No. 1 to the Operating Agreement for its Barytes Project.
This development marks a significant milestone in the long-standing collaboration between PPL and the Government of Balochistan (GoB) under their joint venture for the Baryte, Lead, and Zinc (BLZ) Project.
In an official notice to the Pakistan Stock Exchange (PSX), PPL confirmed the signing of the amended agreement, originally dated November 15, 2004. The updated terms now incorporate Mining Lease No. 16, executed on December 6, 2021, for Lead and Zinc located in Khuzdar District, Balochistan. This is in addition to the existing lease area for Barytes in Gunga, also in District Khuzdar.
Under this amendment, PPL, through its mining subsidiary Bolan Mining Enterprises (BME), will continue as the designated operator for the BLZ Project. The agreement outlines clear commitments to ensure that employment opportunities will prioritize residents of Balochistan, supporting local economic development and fostering community inclusion.
In terms of financial structure, both PPL and the GoB will contribute funding in line with their equity shares in the project. Notably, PPL has committed to arranging GoB’s capital share through internal financing, ensuring that the provincial government can fully participate without requiring upfront investment.
The BLZ Project has already undergone a comprehensive Bankable Feasibility Study, conducted in 2019 by M/s DMT of Germany. The study laid the groundwork for the current development phase, which is now gaining momentum following the formalization of the expanded agreement.
With an expected mine life of 32 years, the BLZ Project in Balochistan is projected to yield average annual revenues of approximately USD 144 million and boasts a net present value (NPV) of USD 356 million. These figures underscore the project’s long-term commercial and strategic importance.
The strengthened partnership between PPL and the Government of Balochistan highlights a shared commitment to harnessing the province’s vast mineral resources responsibly while promoting sustainable development in one of Pakistan’s most resource-rich regions.