MINERAL SECTOR OF GILGIT-BALTISTAN REGION

MINERAL SECTOR OFGILGIT-BALTISTAN REGION

GEOLOGICAL CONFIGURATION OF THE GILGIT-BALTISTAN

Spreading over an area of 72,400 Sq.km, the Gilgit-Baltistan region ofPakistan is shrouded by the three conspicuous world famous MountainRanges namely:

The Himalayas The Karakoram The Hindu Kush

Geologically the region is characterized by:

Presence of Various types of sedimentary, igneous, volcanic and differentgrades of metamorphosed rocks .All these rocks range in age from pre-Cambrian to recent.Occurrence of 2 major tectonic thrusts.Typical rocks of the mélange zone.Rocks of the Island arc sequence.Variety of alteration zones.

The presence of these geological features designate theentire region having most suitable geologicalenvironments as compared to the rest of the world wheremineral deposits of economic grade are being extracted.These include metallic, non-metallic, energy minerals,precious/dimension stones and different rocks of industrialuse.

GEOLOGICAL STATUS OF THE GILGIT-BALTISTAN

Regional Geological Map of Gilgit-Baltistan Region Showing Various Lithological Units along with Major Structural Features

INTERPRETED SPECIFIC

ALTERATION ZONES FOR

GOLD AND BASE METALS

EXPLORATION FROM THE SATELLITE ASTER AND LANDSAT IMAGES

INTERPRETED TARGET AREAS FOR OCCURRENCE OF GOLD AND COPPER ALSO SHOWING MAJOR FAULTS AROUND SKARDU-SHIGAR

STATUS OF ECONOMIC MINERAL POTENTIAL OF GILGIT-BALTISTANDuring the past, extensive geological exploration has been conducted by various national and international organizations as well as world renown geo-scientific research institutes in the entire region.

Consequently world class geo-technical data has been generated that has established occurrences of various mineral commodities targets for subsequent development and ultimate mining. These include:-

Precious and base metals Precious and semi-precious gemstones, Industrial minerals Placer deposits for recovery of gold & other precious metals form

the alluvial deposits.

ESTABLISHED TARGETS FOR DEVELOPMENT OF METALLIC ORES IN GILGILGIT-BALTISTAN REGION

MINERALCOMMODITY

NOS OF TARGETS

A. PRECIOUS & BASE METALSGOLD 168

PLATINUM 106

PALLADIUM 46

COPPER 493

LEAD 280

ZINC 352

COBALT 255

NICKEL 487

BISMUTH 67

MOLYBDINUM 1

ARSENIC 1

ANTIMONY 2

IRON ORE 3

ESTABLISHED TARGETS FOR PRECIOUS AND SEMI-PRECIOUS GEMSTONES

PRECIOUS /SEMI PRECIOUS STONE

NOS OF TARGET AREAS

RUBY 3

EMERALD 2

SAPPHIRE 2

SPINAL 2

AQUAMARINE 12

TOPAZ 15

TOURMALINE 4

EPIDOTE 3

MOONSTONE 4

ZIRCON 3

PARGASITE 4

GARNET 15

AMETHYST 2

MORGANITE 3

AN IMMAGE FROM SHIGAR VALLEY, SKARDU INDICATING HOST ROCK FOR GEMSTONES

INDUSTRIAL MINERALS AND DIMENSION STONESQuite a few industrial minerals like china clay, feldspars have been reported from the region and dimension stones among which marble and granite are eye-catching. Adequate deposits of dimension stones are found in Ghizer, Skardu ,Hunza/Nagir and Gilgit Districts, besides serpentinite deposits at District Skardu.

Presently these are being mined using indiscriminate blasting techniques which not only destroy this natural resource but also result wastage of more than 75% of the total yield.

There is great investment opportunity to develop insitue block cutting quarries by deploying modern machinery that will consequently enhance its selling price.

IMAGE SHOWING DIMENSION STONES DEPOSITS AT THALLAY VALLEY, SKARDU

IMMAGES SHOWING A MECHANIZED MARBLE QUARRY AND THE EXTRACTED BLOCKS IN A RECENTLY DEVELOPED MODEL QUARRY

ATDISTT. KHUZDAR BALUCHISTAN

GRANITE DEPOSITS

Huge deposits of Silky white Granite is available at Hanzel and many other locations

Silky white granite has been cut and polished from the boulders of Hanzel and used in the construction of Holiday Inn Lahore

Recovery of Gold and other Heavy Minerals From Placers

Gold extraction from the placers is known in the region since time immemorial. The Hunza, Ghizer and Indus rivers with majority of the sub-tributaries joining these rivers are gold bearing. vast terraces having depth to a range of 120 meters are frequently exposed along all these rivers.

A survey conducted in 1998 revealed that local gold-washers extract about 15Kg gold annually from the entire region. These gold washers use primitive techniques including mercury amalgamation for recovery of this yellow metal normally washing 700 to 1000 kg. sand daily by deploying 8-10 persons.

With the development of latest techniques, mechanized gold recovery system is now available that can process from 5 to 50 tons per hour of placers with ensured safe recovery of gold along with other metals like titanium, gems, magnetite etc.

SMALL TO MEDIUM SCALE EXTRACTION OFGOLD & OTHER HEAVY MINERALS FROM PLACERS.,,

FUTURE PLANS OF THE GB GOVT. FOR ACCELERATED DEVELOPMENT OF THE MINERAL SECTOR

Uplift of the Gilgit-Baltistan is one of top priority of the present Government. We all wish to see these far-flung areas to prosper. We want these areas to open for all developmental activities so that the local people harness the benefits of the mineral wealth.

In view of having a huge potential for investment in the mineral sector of Gilgit-Baltistan, the Govt. of GB has already adopted the National Mineral Policy (NMP) already in vogue in other federating units of the country.

Mining concession rules are framed as per provision of the policy. One of the component of the policy, i.e, formation of Mineral investment facilitation Authority has been formed and notified, while setting up of a regular Directorate General of Mines and Minerals for effective implementation of legal, financial and administrative regimes provided in the NMP is in the offing.

NATIONAL MINERAL POLICY (NMP) 1995- SALIENT FEATURES

Time bound, simplified having progressive fiscal regime

Lighter tax burden in early years of mine life

Provides appropriate institutional and consultative mechanism at federal and provincial levels for dispute resolution.

Generation of basic geological data to the extent of defining exploration target; a federal subject.

Provinces to develop exploration targets into investment opportunities and to grant titles & regulate mining laws.

Private sector to convert the discovery into economic resource.

AVAILABLE INCENTIVES FOR THE PRIVATE ENTREPRENURES

MINING TAXATION COMPARASIONTYPE OF TAX OTHER PROVINCES GILGIT-BALTISTAN

Corporate Profits Tax 35% (public), 45% (private) Nil

Dividend Withholding Tax 7.5% adjustable Nil

Royalties on Production 1-10% 1 to 10%

Property and Asset Taxes 2% Capital Value Tax Nil

Value Added Tax 15% GST Nil

Surface Rents/Title Fees Annual, nominal Annual, nominal

Customs Duties 10% Nil

State Equity Participation Yes Not mandatory

Excise Duties/ Labour Welfare Yes Nil

AVAILABLE INCENTIVES FOR THE PRIVATE ENTREPRENURES

Lapidary facilities are available in Gilgit-Baltistan including trained manpower from Italy.

Availability of cheaper electricity

Available infra-structure for hydel power self generation in the entire region for establishment of mineral processing units

FURTHER INCENTIVES OFFERED HENCEFORTH

After completion of exploratory work and

submission of feasibility report and conversion of

exploration license in to a mining lease the intending

entrepreneurs shall be provided infra-structure

facilities like roads to the respective mining sites

LAST BUT NOT THE LEAST

Gilgit-Baltistan needs to be got rid of poverty and brought in to mainstream of social life that can only be done through development of itsavailable natural resources.

We can address the problem by taking bold initiatives. we have thecapacity to do it by implementing purposeful projects for the people'swelfare.

In order to fulfill its mandated obligations, the Govt. of Gilgit-Baltistanhas the determined plans for it and is all times on the lookout forrelated National as well as Multinational Organizations andentrepreneurs for seeking their technical assistance in this regard