Karachi, May 24, 2024 – Pakistan Petroleum Limited (PPL) announced on Friday the formation of a joint venture (JV) with Degan Exploration Works (DEW) for a mineral exploration license in District Chagai, Balochistan. This strategic move aims to diversify PPL’s business portfolio by expanding its mining operations.
In a statement shared with the Pakistan Stock Exchange (PSX), PPL detailed the joint venture agreement with DEW to explore and develop mineral resources under exploration license EL-207. PPL will hold a 49% interest in the JV, while DEW will hold the remaining 51%.
Degan Exploration Works, a wholly-owned subsidiary of the Frontier Works Organization, is the operator of EL-207 and has been granted exploration rights by the government of Balochistan. The exploration license covers an area in the Chagai Metallogenic Belt, renowned for its world-class copper and gold deposits, including the famous Reko Diq and Saindak sites.
Subject to obtaining all relevant corporate and regulatory approvals, PPL plans to invest approximately $11.5 million in the initial exploration phase over the next three years. This investment will support various exploration activities within the EL-207 license area.
The Chagai Metallogenic Belt is a prime geological zone with significant potential for copper and gold mining. By partnering with DEW, PPL aims to leverage this potential, enhancing its strategic positioning in the mineral-rich region. This joint venture is expected to not only bolster PPL’s mining portfolio but also contribute to the economic development of Balochistan by tapping into its abundant natural resources.
PPL’s management expressed optimism about the venture’s prospects, highlighting the strategic advantages it brings within the Chagai region. The collaboration with DEW, backed by the expertise and operational capabilities of the Frontier Works Organization, positions the JV to successfully navigate the challenges and opportunities in mineral exploration and development.
This initiative underscores PPL’s commitment to diversifying its business operations and expanding its footprint in the mining sector, complementing its core activities in oil and gas exploration and production. As the project progresses, stakeholders will be keenly observing its impact on both the company and the region’s economic landscape.
