Canadian giant eyes Pakistan’s mineral wealth

ISLAMABAD: Canadian mining giant Ivanhoe Mines has signed a memorandum of understanding (MoU) with Pakistan’s Mari Energies, marking its entry into South Asia as the country seeks to attract international investment in its mineral sector.

Ivanhoe Mines Chairman Robert Friedland announced the agreement on Thursday on the sidelines of the Pakistan Minerals Investment Forum. He said the company was in the initial stages of establishing a local office in Pakistan and planned to sign another MoU on Friday.

Mari Energies operates several mineral exploration projects through its mining subsidiary, Mari Minerals, including copper and gold ventures in Pakistan.

The partnership is expected to expand Ivanhoe’s international presence beyond its major mining operations in southern Africa.

“We’re excited to be here in Pakistan,” Friedland said.

Meanwhile, Punjab Chief Minister Maryam Nawaz highlighted the province’s mineral potential, claiming there was significant evidence of substantial placer gold deposits in its five rivers.

Addressing the investment forum, she said gold resources were particularly promising in areas around Mianwali and Attock. She described Pakistan as a country rich in natural wealth, saying its mineral resources needed to be explored and developed to generate economic benefits.

Maryam also highlighted the growth in Punjab’s mining revenue, saying the provincial Mines and Minerals Department had increased its earnings from around Rs10 billion two and a half years ago to Rs40 billion.

She further pointed to Chiniot’s iron ore reserves, estimated at 261.5 million tonnes, as another major investment opportunity.

The chief minister said her government was working to make the mining sector more attractive to local and foreign investors by removing bureaucratic hurdles, reducing delays and introducing one-window facilities.

She said the provincial government was also making capital investments to lower investors’ initial costs, including measures to reduce the financial burden of acquiring expensive land.

Maryam added that investors would be offered concessional financing of up to Rs5 billion, along with solar-powered energy solutions to help manage rising energy and fuel expenses.

Deputy Prime Minister and Foreign Minister Ishaq Dar, meanwhile, stressed that cooperation between federal and provincial governments was essential for developing Pakistan’s mineral resources.

Addressing the forum, he said the constitutional authority of provinces over their mineral resources must be respected, adding that provincial governments were important partners in attracting investment and implementing national development plans.

Dar said Pakistan’s mineral wealth could play a significant role in transforming the economy by expanding exports, strengthening domestic industries and attracting long-term foreign investment.

He identified copper, gold, iron ore, chromite, lead, zinc, coal, rock salt, marble, gypsum and gemstones among the country’s major mineral resources. He also highlighted the potential of the Tethyan metallogenic belt in western Pakistan.

Referring to the Reko Diq copper and gold project in Balochistan, Dar said it demonstrated how international expertise, domestic participation and provincial ownership could support large-scale mining investment.

He emphasised that Pakistan should move beyond extracting minerals and exporting raw materials. Instead, the country needed to develop local processing, refining and manufacturing capabilities to generate greater economic value.

The deputy prime minister also called for greater employment opportunities for local communities, skills development and participation by Pakistani businesses in mining projects.

He said environmental protection, worker safety and the rehabilitation of mining sites must remain central to the development of the sector.

The Reko Diq project is among Pakistan’s largest planned mining ventures. The open-pit operation is designed to process 45 million tonnes of ore annually in its initial phase, with capacity expected to reach 90 million tonnes following the completion of the second phase.

The project has an estimated operating life of 37 years, which could potentially extend to 80 years through further exploration and resource development.