Mining Quetta

Introduction

It is believed that the mining sector has considerable potential. Yet its role in the economy of the district has not been fully exploited. The involvement of the private sector in mineral development is minimal. The sector has restricted its action to those minerals that can be located and exploited with little effort.

Source: Directorate of Minerals, GoB, Quetta.

During 1994/95 the number of labour involved in coal industry was 3267 out of them 3 were women, they were involved in surface activities. The number of employees in limestone and building stones during the same year was 17 and 158 respectively.

Source: Balochistan Development Authority

Mineral Resources

According to a report published (Geological Survey of Pakistan) in 1996 on potential mineral resources and areas under investigation in Balochistan, it has been pointed out that there are vast resources of coal in Quetta district.

It can be seen from the table that during 1990-91 - 1994 - 95 on average 161,000 tonnes of coal were produced. The coal production has declined due to imposition of tax on coal. Consequently some of the coal mines have stopped producing as a protest against this tax. During 1994-95 Rs.160 million was collected as tax. It is worth mentioning that the exploitation of granite has started on experimental basis and there are ample chances for its production. Moreover, at Sorange some donor countries with the collaboration of Balochistan Development Authority (BDA) are searching for oil and gas. Limestone production has increased from zero in 1990-91 to 937 tonnes in 1994-95. Similarly building stone production has increased from 0 to 230 tonnes during the same period.

 Mines and production, Processing / Marketing

The use of technology in the mining sector depends upon the scale of operation and the type of minerals e.g. for granite, sophisticated and expensive machinery is used while for limestone and building stone, simple technology is applied. Where the mining operation is small scale, the use of machinery is minimum, while in the case of coal considerable investment is needed. If the mine is horizontal, manual power is used for hauling the coal. Wherever the mine is not horizontal, electric or diesel mechanized pull systems are used to extract the coal from the mine. Coal is extracted through mining while limestone and building stones are extracted from open air mines.

 Theoretically, the license structure for mining takes two forms. Firstly, a prospecting license is given for one year, renewable for a further two years. If any mineral is found then the Directorate of Mineral Development converts the prospecting license into a mining lease. The period of the lease ranges from 10-30 years for different minerals. The one who gets the prospecting license, either himself or through an agent explores and exploits the mineral. Otherwise for the purpose of exploitation he can sublet the lease.

 There are 4 types of fees/taxes collected from the mineral sector. When a prospecting license is awarded to any party, annual fees on advance basis are charged from him on a per-hectare/per-annum basis. The minimum fee is Rs.1000/-. When a prospecting license is converted into a mining lease, a dead rent on half yearly basis is charged. When actual production begins, royalties are charged. This is different for different minerals. Sometimes a demarcation fee is also charged to the parties. There are 11 mineral development check posts in the province. There is also mobile squad to check the irregularities.

Department of Industry and Mineral Development

The Directorate of Mineral Development looks after the activities of the mining industry of Balochistan. Its main functions and responsibilities include:

1. To grant concessions for minerals in Balochistan

2. To regulate mining concessions rules promulgated in 1970.

3. To collect royalty and rent etc. from mining concessionaires.

4. To extend technical advise to the mine owners.

5. To ensure scientific exploitation of mineral

GO/NGO/Private Enterprise, etc. involvement in Mining

At present the provincial government and private enterprise provide mining and transportation facilities. Federal government does not play any significant role in the provision of mining services. The international donors are providing some assistance at provincial level.

Conclusion and major Development Issues

It is believed that the mining sector in Quetta district is not yet developed to its full potential. A recent report of the Geological Survey of Pakistan indicate vast resources of coal.

The further exploitation should be a joint effort of the public and the private sector, with the government being responsible for making the required institutional arrangement and the infra-structural facilities. The private sector should contribute its capital and acquired know-how. It should strive to introduce more modern technology and to take improved measures for the safety of the miners.

 Apart from coal, attention should be given to other minerals as limestone and building stone.

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