STAR SECTOR 3: MINERALS
North to south and east to west, the land of FATA holds a rich trail of hidden gems. From precious stones to exquisite marble, FATA has been renowned as the treasure chest of Pakistan. Such a portfolio of lifetime investment opportunities are there and seeking an investment genius to make them count!
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The natural endowment of FATA is unveiling mineral resources that can literally reshape the economic landscape of Pakistan. Foreign and local investors can generate business opportunities far beyond their reckoning. All it needs is someone with the vision and determination to take a step forward. We promise there will be no turning back.
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For centuries, this land has been talked about as the hidden treasure of South Asia for its vast stashes of exquisite and valuable minerals. As much as they are in abundance and propitious, this colossal natural resource remains buried under unexplored possibilities thus far. Under the Sustainable Development Plan (2007-2015), FATA Secretariat has taken swift measures to power up the mineral sector as a key ingredient of economic growth reflected through improved livelihoods, business profits, investment returns and social change.
In order to bring the mineral sector of FATA at par with international standards, the Directorate of Minerals FATA has recently launched its long-term mineral development plan, the Mineral Policy for FATA (2015). The vision of the policy is to stimulate and guide private mining investment by administering, regulating and facilitating the growth of the sector through a responsive and efficient institutional framework. The Directorate of Minerals FATA is developing the mineral sector plan with the assistance of FATA Development Authority to attract public and private sector investments in mineral projects.
The mountainous regions and rock formations of FATA yield a variety of minerals, ranging from marble and granite to copper and gold. The region has some of the best varieties of marble and granite which has huge demand and market potential in the Middle Eastern, European and North American countries. In the annual development plan for the financial year 2013-2014, the mineral sector was allocated US $1.4 million mainly in the areas of sector regulation and infrastructure development, which clearly establishes that there is considerable space for private investments in the sector.
Director Mineral FATA
AGENCIES WITH AVAILABLE MINERAL RESERVES FOR READY INVESTMENTS Bajaur Marble, Manganese, Chromite, Emerald Khyber Marble, Barite, Graphite, Soapstone, Limestone Kurram Soapstone, Coal, Marble, Magnesite, Iron Ore, Lead Mohmand Marble, Chromite, Silicasand, Dolomite, Manganese, Quartz, Feldspar, Emerald Orakzai Coal, Iron North Waziristan Copper, Gold, Nickel, Manganese, Chromite, Magnesite, Granite South Waziristan Copper, Gold, Chromite, Marble, Granite Source: FATA Development Authority, 2015
Mineral production, marble and granite in particular, has undergone a significant and steady increase since 2005. Currently, soapstone at Ghandao in Mohmand Agency is mined and exported to Europe where demand has shown consistent growth over the years. In North Waziristan, estimated copper reserves of 35 million tons have been identified which remain largely idle so far. Exploitation of these resources will employ labor in thousands, besides swelling export revenues and expanding commercial undertakings.
INVESTMENT OPPORTUNITIES IN FATA MINERAL SECTOR Potential reserves and opportunities for investment
MARBLE
The three FATA agencies of Bajaur, Mohmand and Khyber have tremendous marble reserves accumulating to 5850, 845 and 345 million tons respectively. In order to curtail the enormous wastage, increase the life of marble deposits and animate product competitiveness at the international level, a number of projects have been initiated. Establishment of a marble city in Mohmand Agency, international outreach activities to market FATA marble potential, introducing high-tech block cutting machinery and upgradation of marble factories are some of the projects that are readily available for investors.
MANGNESE
Geological studies conducted in FATA have identified 2 million tons of manganese reserves in North Waziristan, Mohmand and Bajaur Agencies. In order to capitalize on the identified prospects and to explore additional reserves, further evaluation studies have been initiated. For value addition of the manganese deposits, establishment of ferromanganese plant, laboratory experimentation of the extracted material and pilot scale studies have been successfully been completed. So far, 1400 tons of manganese has been extracted which is an equivalent of annual revenue running in millions.
COPPER
In North Waziristan Agency alone, the identified copper deposits are holding 35 million tons. Additionally, the copper ore found in Shinkai area has been unearthed. To enhance the copper reserves to the international benchmark of 50 million tons, subsurface investigations are underway with the assistance of Pakistan Atomic Energy Commission. Further investments in the exploration and development of this exquisite mineral will provide significant job opportunities for locally available workforce in addition to fostering the local economy and business climate of FATA.
SOAPSTONE
More than 3.6 million tons of world class soapstone deposits exist in Daradar and Gandao areas of Kurram Agency. Due to its attractive market potential internationally, a number of multinational companies have acquired rights for soapstone extraction and international marketing. Marmi-e-Peitre, an Italian company, and Youngwoo Mires, a South Korean company based in Seoul, have invested heavily in the soapstone sub-sector of FATA and are extracting generous revenues as return on investment.
COAL
FATA has rich quality coal deposits identified throughout the breadth of the region. Immense deposits of coal have already been identified in Orakzai, Kurram and North Waziristan Agencies. Dara Adam Khel in Frontier Region Kohat has shown a lot of promise in terms of mineral extraction and processing. In FATA, there are estimated reserves of 81 million tons out of which 15 million tons are proven. In order to add value to the raw coal, FATA Secretariat has carried out successful research and development work on manufacturing of smokeless and odorless coal briquettes. For tapping foreign and local investments, a prefeasibility study for establishment of a viable coal briquetting plant has also been initiated.
GYPSUM
Mineral classification
In Frontier Region Dera Ismail Khan, gypsum reserves of 137 million tons have been identified. The Shirani area is abundantly rich with high grade gypsum which is extracted for use in cement manufacturing, fertilizer production and plaster moldings. Due to the pivotal geographic position, established infrastructure facilities and skilled human resource, the sub-sector is glistening with several opportunities for investors, ranging from mining and processing to marketing and exporting. Source: FATA Development Authority, 2015
FROM ROCKY POTENTIAL TO SOARING PERFORMANCE Meet Adnan Khan, a successful entrepreneur from Mohmand Agency who made it big from small beginnings. Reviving his marble factory was a daunting task in 2003 until he hit a jackpot with the discovery of exquisite Ziarat White Marble in Mohmand Agency. The pure white variety of marble generated phenomenal market demand within no time because of its rarity. Within a span of months, he was meeting Chinese, Italian and Canadian entrepreneurs who shared their interest in pursuing investment projects offered by the Directorate of Minerals FATA. Impressed by his evident business acumen and the lure of the FATA mineral sector, these foreign investment groups intend to explore opportunities for ownership rights of marble reserves, establish marble processing units in FATA and market the finished products in their respective countries. The world it seems has come to know about the hidden gems of FATA.