Pakistan’s largest Chinese mine threatens to cease operations: report

Saindak Metals Limited (SML), the operator of Pakistan's largest Chinese-run copper and gold mining project, has warned that worsening security conditions in Balochistan could force the Saindak Copper-Gold Project to suspend operations within the next month, according to a report by the Financial Times.

 

In a letter addressed to the Ministry of Energy, the company's managing director stated that the deteriorating law and order situation in the province has severely disrupted the transportation of essential supplies and equipment required for the project's operations.

 

The letter warned that if the situation persists, the continuous operation of the mine may become unsustainable, with production potentially coming to a halt within a month due to shortages of critical materials and logistical support.

 

Saindak Metals Limited is a public sector company responsible for the Saindak Copper Gold Project in Balochistan, Pakistan's first large scale mining venture. The project was developed in partnership with the Resource Development Corporation (RDC) and constructed by China's Metallurgical Corporation of China (MCC) under a contract awarded in 1992. The project was originally planned as a turnkey operation to be completed and handed over by August 1995.

 

According to the Financial Times, official statistics indicate that the mine accounts for the majority of Pakistan's approximately $750 million worth of copper product exports recorded last year, highlighting its strategic importance to the country's mining sector and export earnings.

 

The report stated that road transportation has become increasingly dangerous, creating serious challenges for the movement of equipment, raw materials, and other essential supplies needed to maintain mining operations.

 

The latest warning comes as Pakistan seeks to expand its mining industry and attract greater foreign investment in natural resources. Analysts believe that prolonged operational disruptions at the Saindak project could undermine the country's efforts to develop its mineral sector, boost exports, and transform Balochistan into a major hub for resource extraction.

 

The development also raises concerns over the future of the lease agreement between Saindak Metals Limited and the Metallurgical Corporation of China, which has previously been considered for an extension until 2037.