establishment of cement plant and its potential in balochistan
TRANSCRIPT
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Establishment of Cement Plant
and its Potential in Balochistan
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Table of Contents
1. PAKISTAN CEMENT INDUSTRY OVERVIEW ___________________________________ 3
2. STATEMENT OF INSTALLED PRODUCTION CAPACITY _________________________ 5
3. TYPES OF cement PRODUCED IN PAKISTAN ____________________________________ 6
4. CEMENT PRODUCTION PROCESS _____________________________________________ 7
5. CEMENT PRODUCTION PROCESS TYPES ______________________________________ 8
6. PAKISTAN CEMENT INDUSTRY STRUCTURE _________________________________ 10
7. PAKISTAN CEMENT INDUSTRY PROJECTION _________________________________ 11
8. SETTING UP CEMENT PLANT IN BALOCHISTAN ______________________________ 13
9. RAW MATERIAL USED IN CEMENT PRODUCTION: ____________________________ 14
10. PROCEDURE FOR SETTING UP A CEMENT PLANT ___________________________ 14
11. MAJOR STAGES INVOLVED IN SETTING UP AN INTEGRATED CEMENT PLANT 15
12. PRE-PROJECT STAGE _____________________________________________________ 16
13. PROJECT EXECUTION STAGE _____________________________________________ 19
14. PROJECT IMPLEMENTATION: _____________________________________________ 19
15. PROCUREMENT OF MAIN EQUIPMENT AND SERVICES:______________________ 20
16. DETAILED ENGINEERING: ________________________________________________ 20
17. KEY FACTORS IN SETTING UP OF A CEMENT PLANT ________________________ 21
18. RULES AND REGULARITIES BY GOVERNMENT OF BALOCHISTAN ___________ 22
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1. PAKISTAN CEMENT INDUSTRY OVERVIEW
The total volume of cement production
worldwide accounted for approximately 4.2
billion tons in 2019. The global cement and
concrete market reached a value of nearly
$439.2 billion in 2019 and is expected to
grow at a CAGR of 10.4% to nearly $652.7
billion by 2025. Furthermore, global
economic development, increasing
infrastructure spending, and rapidly
growing urban populations will drive
growth.
The key drivers for cement demand and
growth are infrastructure projects (CPEC)
& the Real Estate sector. In Pakistan, around
45% of the total cement produced is
consumed in the Real Estate sector.
Moreover, around 45% of total cement
produced is consumed in Public development & infrastructure projects. (Large scale
infrastructure projects include dams, hydropower plants, Gwadar deep seaport, and
motorways). The government has labeled the construction and cement industry as a significant
source of growth and investment in the future. It has already introduced an incentive package
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for the construction industry in April 2020, anticipating to help increase local cement
consumption. The package includes an amnesty scheme, tax exemptions, and a PKR30bn
(US$182.2m) subsidy. Furthermore, the construction sector was given industry status in
Pakistan.
The acceleration in construction sector activity and the government's infrastructure and housing
initiatives have seen cement consumption increasing by 17.6 percent in 2019 to reach 39.7Mt,
whereas, 8 million tons of cement was exported to Afghanistan and Central Asian countries.
Pakistan has a well-developed cement
industry with abundant raw material
available in the country. The country
ranks amongst the top 5 exporters and is
the 15th largest cement producer in the
World. Currently, there are 25 cement
production plants operational in Pakistan
with an annual production capacity of
69.2 million tons. Only two out of 25
cement plants are operational in
Balochistan.
1. DG Cement (DGKC) is the
largest cement producer in
Pakistan, and is operational in the
Hub Lasbela district of
Balochistan, with the capacity of
9000 tons/day clinker based on
the latest dry process technology.
2. Attock Cement Pakistan Limited,
branded as Falcon Cement, has a cement production plant in Hub as well, Lasbela
district of Balochistan with the capacity of 1.2 million tons per annum.
Cement producers dispatched 47.8Mt of cement in the 2020 fiscal year out of which 39.95
million tons were locally dispatched whereas 7.85 million tons were exported mainly to
Afghanistan and gulf countries.
(Dispatches M. Tons) Percentage
Year Local Exports Total Local Exports
2013 23.95 8.57 32.52 74% 26%
2014 25.06 8.37 33.43 75% 25%
2015 26.15 8.14 34.29 76% 24%
2016 28.21 7.2 35.41 80% 20%
2017 23.94 4.41 28.35 84% 16%
2018 33.5 6.5 40 84% 16%
2019 39.95 7.85 47.8 84% 16%
0
10
20
30
40
50
60
2013 2014 2015 2016 2017 2018 2019
Dispatches in Million Tons
Local Exports Total
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2. STATEMENT OF INSTALLED PRODUCTION CAPACITY
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3. TYPES OF cement PRODUCED IN PAKISTAN
The types of special cement now being produced can be roughly classified into the following
six categories according to the special purpose for which these have been designed. These are
classified as:
1. Rapid hardening cement.
2. Cement resistant to chemical attack of certain soil and aggregates.
3. Low heat of hydration cement.
4. Better protecting cement for steel reinforcement.
5. Better workability and whether resisting cement.
6. Decorative cement and other special cement.
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4. CEMENT PRODUCTION PROCESS
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5. CEMENT PRODUCTION PROCESS TYPES
5.1. WET CEMENT PRODUCTION PROCESS
The wet process method is grinding the raw materials into slurry after mixing with water and
then feeding them into the wet process kiln for drying and calcination and finally forming
clinker. The slurry’s water content is usually 32%-40%. The advantage of Wet process method
is that its good fluidity of raw materials produces high-quality clinker. But it requires more heat
consumption, so it is environmental-unfriendly.
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5.2. DRY CEMENT PRODUCTION PROCESS
The dry process method is the manufacturing of raw materials into powder, whose water
content is generally less than 1%. The dry process can `reduce heat loss needed by heating and
autoclaving water. But the dry process has its flaw; that is the bad fluidity of materials grain in
a kiln. It will cause an uneven mix.
5.2.1. DRY PROCESS CEMENT METHOD TECHNOLOGICAL PROCESS:
• Crushing and pre-homogenizing.
• Raw materials preparation.
• Raw material homogenization.
• Preheat decomposition.
(1) Material dispersion (2) Gas-solid separation (3) pre-decomposition
• Firing of cement clinker.
• Cement milling.
• Cement packaging.
5.2.2. DRY PROCESS METHOD’S ADVANTAGES INCLUDE:
• The dry process owns the perfect dust removal effect, it decreases the quantity of dust
in operation which improves the operational environment and makes environmental
protection more convenient and faster.
• The dry process has an excellent pre-warm system, which can speed up the rotation of
the kiln in operation to raise the yield.
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• The dry process has a good stealing system. It can take full advantage of waste heat to
lower the running expenditure.
• The dry process has a great adaptation to materials. So, the device runs steadily. Cement
clinker calcinated in the kiln has better quality, which brings more economic benefits
for enterprises.
6. PAKISTAN CEMENT INDUSTRY STRUCTURE
The cement industry of the country can be divided into two separate zones: North & South
Zone. North Zone includes provinces of Punjab, Khyber Pakhtunkhwa, Azad Kashmir, Gilgit-
Baltistan, and parts of Balochistan, while South Zone includes provinces of Sindh and
Balochistan. There are 19 and 5 cement units in the North and South Region, all together. The
industries in the North Zone represent around four-fifth of the total rated capacity.
However, North and South zones have their separate demand-supply dynamics. Players
operating in the South Market have the opportunity to tap several export markets, thus
providing greater room for revenue diversification.
6.1. EXPANSION
Pakistan is amongst the three Cement Concentrations in the world where demand is expected
and has the potential to grow at its fastest. Given the favorable demand outlook and to enhance
efficiencies, four cement manufacturers (Lucky Cement, D.G. Khan Cement, Cherat Cement,
and Attock Cement) have recently added 16% additional capacity.
Company Plant
Capacity
Million MT
per year
Projected
Cost in
million
Region Completion
Year
Plant Manufacturer
DG Khan
Cement
2.68 $300 South 2018 FLSmidth (Danish
cement plant
manufacturer)
Lucky
Cement
2.42 $200 North 2018 Chinese plant with
European lines
Attock
Cement
1.26 $130 South 2017 M/s Hefei Cement Re-
search and Design
Institute (HCRDI),
Cherat
Cement
1.3 $120 North 2017 M/s Tianjin Cement
Industry Design and
Research Institute
Company Limited
(TCDRI) – China
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7. PAKISTAN CEMENT INDUSTRY PROJECTION
Pakistan has a well-developed cement industry
with the availability of abundant raw material in the
country. The country ranks amongst the top 5
exporters and the 15th largest cement producer in
the world. However, per capita, cement
consumption at 195kg is on the lower side as
compared to most regional peers and the vis-à-vis
global average of more than 400kg. Lower per
capita consumption in the country is reflective of
significant room for future growth.
• A strong correlation exists between GDP and Cement demand growth.
• The growth rate of Local cement demand is continuously increasing and depicting a 10%
CAGR (FY14-19) about 2x average GDP Growth.
• Balochistan province has large deposits of raw materials used in cement manufacturing
like limestone, shales, and gypsum. Moreover, large reserves of coal in Balochistan (217
million tons) can be used as fuel for cement manufacturing in Balochistan - making the
province an ideal location for the cement production plant.
• Rapid Urbanization/Population growth has a significant backlog of housing units
estimated at 9 million units and the announcement of various plans by the government to
address this shortfall.
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• Increased spending on CPEC projects especially SEZs and Gwadar could provide upside
potential to forecasted demand.
• Increased GDP growth foreseen on account of large-scale infrastructure projects
(Hydropower, roads, etc.) and CPEC Projects i.e. Thermal (Coal) powered projects, dams.
• Balochistan being the gateway to CPEC – potential cement export to Afghanistan, Central
Asian and Gulf countries can be increased.
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8. SETTING UP CEMENT PLANT IN BALOCHISTAN
Sustained expansion in economic activity and investment in various infrastructure projects
under PSDP and CPEC, coupled with increased demand from private housing schemes have
bolstered the construction sector during the last few years. This has had a spill over impact on
the allied segments of cement and steel as well. Rising demand and healthy margins have also
induced cement manufacturers to expand their production capacities aggressively, from 49.4
million tons to 70 million tons in the last few years.
The importance of Balochistan in cement production
1. Though raw materials (limestone, Shale, and Gypsum) are in abundance in other
provinces as well, land availability is an issue due to the high density of population and
the large number of cement plants already in operation in these areas.
2. Due to the excessive availability of raw material, Balochistan is an ideal location for
establishing cement plants especially small production plants with a capacity of up to
500 TPD at various locations.
3. A mini cement plant will target a market of an entire dissatisfied market that is too small
for a medium-size plant (intermediate cities). It can also focus on the export of cement
to Afghanistan and Gulf countries through Gwadar.
4. The whole production can be sold in the nearest market, reducing transportation costs.
5. In general, permits and licenses for a mini plant are easier to obtain than for a medium-
size plant. It is easier to find large enough mines near the plant, thus reducing the cost
of transporting raw materials.
The Government of Balochistan is encouraging and facilitating the establishment of Cement
Production Plants in the eastern part of Balochistan (Sulaiman Foldbet) such as Loralai,
Barkhan, Musa Khel, Kohlu, and Dera Bugti considering their huge deposits of cement raw
material resources like limestone, shale, and gypsum. Moreover, these areas are relatively close
to the Gwadar Seaports through CPEC routs and to Afghanistan, a major export target for the
cement industry in Pakistan.
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9. RAW MATERIAL USED IN CEMENT PRODUCTION:
1. Limestone: (Total annual production in Balochistan is 7 million tons)
Limestone exists in abundance in different parts of Balochistan. Quetta, Kalat, Harnai,
Sor Range, and Spintangi areas have reserves of limestone with several hundred meters
thick layers of limestone.
2. Gypsum: (Total annual production in Balochistan is 0.5 million tons)
In Balochistan Sibi, Barkan, Kohlu, and Loralai districts have huge deposits of Gypsum.
3. Shale: (Total annual production in Balochistan is 1.2 million tons)
Shale is a fine-grained sedimentary rock that is formed from the compaction of silt and
clay-size mineral particles that we commonly call "mud." Found all over Balochistan.
Additionally, Balochistan also has 217 million tons of coal reserves, which is 520 mainly used
as cement production.
10. PROCEDURE FOR SETTING UP A CEMENT PLANT
Setting up a cement plant is both time and capital-intensive; it could take anywhere between
Two to Five years from concept to commissioning and an investment of around US $ 250 - 270
million for a typical integrated plant of 3 million tpa cement capacity. The size of a cement
plant could vary from 0.2 million tpa to 5.0 million tpa. (0.2 million tpa (i.e., 500 TPD) plant
will cost about US $ 1.8 – 2 million.
A mini cement plant (between 100 and 500tpd of clinker) can be a better solution compared to
plants of medium and large size, for the following reasons:
• It does not require a large investment. In this way, small and medium entrepreneurs can
venture into the cement business.
• Mini cement plants have the same technology that medium and large size plants have.
• Their production costs compared with larger plants are relatively higher, but
competitive.
• It is possible to install a mini cement plant to attend an entire dissatisfied market that is
too small for a medium-size plant (intermediate cities).
• A mini cement plant can be installed at remote sites with non-existent or inadequate
access roads.
• The whole production can be sold in the nearest market, reducing transportation costs.
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• In general, permits and licenses for a mini plant are easier to obtain than for a medium-
size plant. It is easier to find large enough mines near the plant, thus reducing the cost
of transporting raw materials.
Before starting to build a cement plant, it is imperative to know what the cement-making
process involves. The cement manufacturing process starts with the mining of limestone
followed by grinding it with other raw materials like clay, shale, bauxite, iron ore, etc. to
prepare a raw meal, which is heated at a sintering temperature of 1,400 to 1,500 degree Celsius
in a kiln to manufacture clinker. The clinker is then finely ground along with additives like
gypsum, fly ash, slag, etc. to produce the desired type and quality of cement. Cement is then
stored in silos from where it is dispatched to the market in 50 kg bags and/or in bulk.
11. MAJOR STAGES INVOLVED IN SETTING UP AN INTEGRATED CEMENT
PLANT ARE:
11.1. INITIATION & CONCEPTION STAGE
A. First step is to decide the kind of plant to be set up for manufacturing cement. There are four
major types of plants (units) that can be set up:
• Integrated unit (IU): This type of unit comprises an all-inclusive facility to produce
clinker from limestone, which further is ground with additives to manufacture cement.
• Grinding Unit (GU): This type of unit, as the name suggests, has the facility to only
grind clinker along with desired additives to manufacture cement. Clinker for a grinding
unit is sourced either from its parent unit or from other sources/open market. Most of
the grinding units are typically set up near a major cement consumption center to
capture the market, subject to it being in reasonable vicinity to the envisaged blending
material source(s).
• Blending unit (BU): This kind of establishment essentially blends Ordinary Portland
Cement (OPC) with fine blending material(s) to manufacture different kinds of cement.
The objective of setting up a blending unit is also to be near a major market center with
a primary function of mixing sourced OPC with a suitable blending material of
relatively high fineness (high Blaine). Thus, blended or mixed cement product requires
less specific power consumption subject to sourcing the blending materials of relatively
high fineness.
• Bulk Cement Terminal (BCT): This type of unit is primarily a separately located
storing and packing/dispatching plant of a parent cement manufacturing plant located
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elsewhere. Cement is received in bulk essentially by sea, or rail, and stored in a set of
silos. It is typically packed and sold in 50 kg bags and can be dispatched in bulk also
depending on end-users' requirements. The primary objective of such an establishment
is to be located in close vicinity of a major cement consumption center and to cater to
its needs ensuring quicker turnaround from the time order is placed by the end-user for
delivery of cement.
B. The next major step is to identify the location for setting up the cement plant. A plant location
is an irrevocable strategic decision. Parameters for determining the location principally depend
on the type of plant envisioned to be set up. Salient parameters in context being:
• IU: location of an IU is comparatively easier to decide as it ideally must be located as
close as possible to a limestone source. However, for this, a company needs to secure a
limestone mine. Acquisition of limestone deposit is a critical decision; thus, it is
important to carry out a detailed study to examine and evaluate the deposit in terms of
quality, quantity, ease of mining, etc. before investing in the mines.
• Downstream units: The decision on the location of these units depends upon several
factors including access to high consumption markets, future demand growth,
competition intensity, blending material sources and availability, prices, etc.
At the end of this stage, a broad concept of the project should be in place in terms of plant
location(s), capacity and investment requirement. This phase can span anywhere between 0.5
to 2 years depending upon when the board gives its approval to go ahead to the next phase.
12. PRE-PROJECT STAGE
The initiation/conception stage lays the foundation for the next important milestone of setting
out the action plan for the "pre-project activities". The pre-project stage is the preparatory stage
where the concept and configuration of the proposed cement plant need to be transformed to a
relatively structured form from the initial broad concept.
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12.1. THE MAJOR MILESTONES OF THE PRE-PROJECT STAGE ARE:
Securing limestone: Limestone is the key ingredient in cement manufacturing and thus, it is
very critical to secure limestone before going ahead with setting up a cement factory.
This involves the following activities:
• If the company does not own mines, then limestone mines can be acquired either
through an auction process or through the acquisition of any existing company holding
a mining lease or by applying for a mining license in some other countries
• The acquisition of limestone has become very critical as limestone mines can now be
obtained only through mining lease auctions carried out by the Government. With this,
the process of mine leasing has become relatively challenging and cost-intensive, which
calls for assiduous planning in fulfilling cost and strategy effective bidding expertise
• Geological investigations for estimating the limestone reserves
• Mine planning
• Statutory approvals for mines
Techno-economic feasibility report (TEFR)/detailed project report (DPR): to establish the
technical feasibility and financial viability of the project. This also helps the stakeholders in
evaluating associated risks and exploring possible mitigative measures.
12.2. THE SALIENT FEATURES OF A TYPICAL TEFR/DPR ARE AS FOLLOWS:
• Input materials: Availability of limestone, correctives, additives, fuel, etc. It also
includes the availability and cost of utilities.
• Markets: Market transparency, estimation of achievable sales volume, and ex-factory
realization.
• Location and Infrastructure.
• Technology: Suitable technology, equipment sizing, and estimation of storage
capacities, broad civil design, electrical and instrumentation engineering concepts,
environmental control measures, etc.
• Human resource: Manpower count and cost
• Implementation: Implementation strategy and schedule
• Financial analysis: Investment cost, financial returns, and sensitivity analysis
• Risks and mitigation measures
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12.3. LAND PROCUREMENT
The acquisition of land for mines and plants is a tedious and time taking process. This typically
involves the following steps:
• Identification of land for setting up the plant and ascertaining its land use pattern.
• Establishing the land use pattern and applying for a change in land use, if required.
• Acquisition and registration, and allied works about the land patches.
12.4. Regulatory and statutory clearances
Many regulatory and statutory clearances are required for setting up of a plant and start
operations, the few major ones out of many such required clearances/permissions are:
• Environment clearances for mines and plant
• Forest clearance
• Consent to establish the mines and plant (CTE)
• Consolidated approvals for sourcing utilities (power, water, etc.) and handling effluents
• Consent and/ or no objection certificate from local pollution control board(s)
• Certificate of commencement
12.5. Financial closure.
Ideally, the company should arrange for the funds before starting the project. Although some
large business houses begin the project by first putting in a portion of the equity and then
parallelly commencing the process of arranging for other types of finances.
A detailed techno-economic feasibility report is usually submitted to the financial institutions
for obtaining a loan. The project is appraised by financial institutions based on their paraments
to validate the results highlighted in the TEFR. Once the institution is satisfied with feasibility,
the loan is sanctioned for the project. The institution can either grant the loan on its own or
form a consortium of financial institutions that together finance the loan.
The aforementioned activities play an important role in determining the overall success of the
proposed cement project. Pre-project activities can span from 1 to 2 years dependent primarily
on the time taken on securing limestone mines and getting financial closure.
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13. PROJECT EXECUTION STAGE
Project execution is a crucial stage and needs to be carefully planned to avoid cost and time
overrun. Most companies set up a multi-functional team of technical professionals for project
execution. Liaison, finance, and administration functions are also important to ensure that land
acquisition, clearances, and funds availability do not create a bottleneck in project execution,
as many of these activities from the pre-project stage continue well into the project execution
stage. Project execution has two main components ' planning and monitoring, and
implementation.
Project planning and monitoring: The establishment of an efficient system for project
planning and monitoring, including exporting procedures for progress review and coordination,
is very vital for successful project execution. This can either be done by an in-house team or
can be outsourced to a project management consultant.
14. PROJECT IMPLEMENTATION:
Project implementation comprises the following steps.
14.1. Basic engineering:
This step covers the following:
• Finalization of technical concept covering basic specifications for plant and machinery
and other relevant features
• Systems engineering for utilities
• Preparation of plant layout and process flow sheet
• A decision on execution mode, viz.,
• Turnkey: One single contractor is responsible for all project activities concluding with
the handing over of the plant to the owner.
• Semi-turnkey: There are usually two agencies - supplier and contractor. The supplier is
responsible for all activities that occur offshore, i.e. outside the country/project site. The
contractor is responsible for all activities that occur onshore i.e. within the country/
project site.
• Package: The plant is split up into functional process departments and procured
accordingly. Several main suppliers are responsible for the detailed engineering,
manufacture, and supply of equipment(s).
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• Shopping: In this case, the company/consultant formulates the basic design for the
project and assists in procuring equipment
• Most of the companies prefer package mode. Thus, this step also involves defining
packages and battery limits for each package so that there are no grey areas and no gaps
which could potentially create a bottleneck during the plant construction phase.
15. PROCUREMENT OF MAIN EQUIPMENT AND SERVICES:
This covers the following:
• Preparation and release of a tender for inviting bids
• Receipt of offers from various suppliers
• Evaluation of offers
• Technical rating of offers
• Financial negotiation
• Award and signing of the contract
16. DETAILED ENGINEERING:
This covers the following:
• Engineering of plant and integration of equipment from different suppliers
• Review of suppliers' drawings
• Procurement of other auxiliaries and services
• Civil construction: Construction of civil structures
• Mechanical erection: Setting up of plant and machinery
• Electrical erection: Setting up of power system and electrical equipment
• Mechanical completion: Completion of mechanical erection
• Electrical completion: Completion of electrical erection
• Pre-commissioning trials: Trial run(s) to ensure all equipment are operational and
identify issues/bottlenecks if any
• Commissioning: Commissioning of a plant implies that all components of the plant are
operational, and the plant as a whole is running smoothly?
• Performance guarantee (PG) tests: These tests are conducted by the equipment suppliers
to ensure/certify that the equipment is delivering the output as per the terms mentioned
in the contract
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• Commercial production: After successful PG tests, the plant is considered ready to start
commercial production
Many companies engage a technical consultant for some or all stages of project
management/construction monitoring to ensure a smooth execution process.
17. KEY FACTORS IN SETTING UP OF A CEMENT PLANT
Some of the important factors which need to be kept in mind during setting up a cement plant
are:
• Markets: Revenue for the business comes from the market, and thus, it is important to
do thorough research in terms of market transparency to understand the market demand,
competition, prices, and prospects before venturing into this business.
• Limestone: Limestone being the key input material and fuel being important to
sustaining the energy-intensive cement manufacturing process, reliable availability of
limestone and fuel are two vital factors in smooth and cost-effective operations of a
cement plant.
• Location: The location of the plant should be selected keeping in view the availability
and price economics of input materials, access to all required infrastructure and utilities,
and proximity to high consumption cement markets.
A plant location is an irrevocable strategic decision. Parameters for determining the
location principally depend on the type of plant envisioned to be set up. Ideally, it must
be located as close as possible to a limestone source. However, for this, a company
needs to secure a limestone mine. Acquisition of limestone deposit is a critical decision;
thus, it is important to carry out a detailed study to examine and evaluate the deposit in
terms of quality, quantity, ease of mining, etc. before investing in the mines.
• Financial viability: To ensure the financial viability of the project, it is important to
simulate various downside cases and thereby know the possible impact if the cement
demands, prices, etc. do not meet future growth assumptions. This sensitivity scenario
also brings confidence that the debt component of the business can still be serviced
despite an economic slowdown and will keep the business afloat.
• Funds availability: While it is important to wisely select the location, plant technology,
suppliers, etc., it is also critical to ensure funds availability at the right time to avoid
delays and thereby cost overruns.
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• Project management: A multi-disciplinary team, internal and/or external, is vital for
conceptualization, planning, procurement, system integration, and execution of the
project.
• Rule and regulations: It is important to identify and adhere to all applicable rules and
regulations and obtain all the regulatory and statutory clearances for establishing and
running the plant. It would also be prudent to foresee possible changes in policies that
may impact the cement business.
18. RULES AND REGULARITIES BY GOVERNMENT OF BALOCHISTAN
18.1. RULES FOR EXPLORATION LICENSE
The following documents will be required for the Exploration License application under rule
10 & 26 of Balochistan Mineral Rules, 2002.
• Five copies of the comprehensive geological description of the area of land over which
the license is sought.
• Five copies of the geological Map of the applied area (A3 size) covering all the
geological features, structure, formation, etc.
• Location of the area regarding the magisterial district; (Refer rule 18(1)(d))
• The extent of the area and the boundaries by reference to identifiable physical features
and co-ordinate reference points; (Rule 26(1)(b) and (C)).
• The potential for a nature of mineralization in the applied area (Rule 26(1)(i)).
• The program of exploration operations proposed to be carried on, the estimated
expenditure in respect thereof, and the period within which the operation will be carried
on;(Rule (1)(d)(i)).
• A report containing particulars of the state of the environment in the area to which the
application relates, including any existing damage to the environment, the anticipated
effect and likely adverse impact which the proposed exploration operations may have
on the environment; including measures for the prevention of pollution, disposal of
waste and the rehabilitation of land; (Rule 26(d)(ii)).
• Proposals for the control or elimination of any particular risks (whether health, safety,
or otherwise) involved in exploration operations proposed to be undertaken.
• Particulars of the applicant’s technical and financial resources to carry out the
exploration operations and those of any person to be engaged to provide such resources,
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together with supporting documentary evidence and copies to relevant contractual
agreements; (Rule 18(1) (f) and 26 (1)(e)).
• A copy of the Memorandum and Articles of Association of the company and an attested
copy of the certificate of incorporation/registration of the company in Pakistan.
• Proposals in respect of the matters specified in rule 13(1)(b) to (h).
• Annual reports and audited financial statements of the company for the last three (3)
years.
• List of Directors/ Shareholders with the address.
• CV of Technical officers.
• Bank Certificate (Local Bank).
• Application fee for Exploration License Rs: 240,000/- and application form fee
Rs.6,000/- as specified in the First Schedule to the rules (Rule 10 (1) (c)).
18.2. REGULARITIES BY BALOCHISTAN INDUSTRIES AND COMMERCE
DEPARTMENT
18.2.1. PARTNERSHIP ACT, 1932
Meaning and Nature of Partnership
• Association of two or more than two persons.
• Result of agreement between two or more persons.
• The agreement must be to share the profit of the business.
• Business must be carried on by all or any of them acting for all.
• Unlimited Liability
• Restriction on transfer of Interest
• Unanimity of consent
REGISTRATION OF FIRM
Under the partnership act, all firms don't need to get themselves registered. But an unregistered
firm may suffer several disabilities.
An Application in the prescribed format (Form A) with the prescribed fee of PKR. 20,000 has
to be submitted to the registrar of the firms of the state in which the place of business of the
firm is situated.
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The Application must contain the following particulars
• The name of the firm
• The place of the business of the firm.
• The names of any other places where the business of the firm is carried on.
• The date when each partner joined the firm
• The names in full and permanent addresses of the partners.
18.2.2. THE BALOCHISTAN BOILER AND PRESSURE VESSEL ACT, 2015
The boiler Act contains the law related to registration and inspection of the steam boiler. It
Extends to the whole of Balochistan.
REGISTRATION OF BOILER
• The owner of the Boiler shall apply to the chief inspector to have the boiler registered.
• In case of Boiler is imported a third-party inspection is required to obtain an
examination certificate confirming the integrity of the boiler.
• After receipt of the application chief inspector shall arrange a visit for the examination
of the boiler.
• The boiler is examined at maximum pressure and if the test passed registration
certificate is awarded to the owner for the period not exceeding 12 months.
• The schedule for fee inspection is provided in the next slide