PPL and Balochistan Government Form Joint Venture for Khuzdar Lead-Zinc Mining Project

Karachi: Pakistan Petroleum Ltd (PPL) has partnered with the Government of Balochistan to develop a lead and zinc mining project in Khuzdar. The agreement secures a mining lease for the Barytes, Lead and Zinc (BLZ) Project, promising substantial revenue and bolstering PPL’s portfolio.

The project will be operated by Bolan Mining Enterprises (BME), a joint venture between PPL and the Balochistan government. It is projected to generate $144 million in annual revenue over a 32-year mine life, with a net present value of $356 million. PPL will finance the government’s share through internal cash flows.

BME has a history of producing high-quality drilling-grade barytes, meeting American Petroleum Institute standards. The joint venture already holds mining leases in Khuzdar, Pachinkoh, Chigendik, and Dilband, with the Khuzdar lease covering 90% of Pakistan’s barytes reserves.

The BLZ Project is expected to significantly increase PPL’s revenue, scaling from PkR1.8 billion in FY24 to PkR23.0 billion once fully operational. The project’s development is anticipated to begin by FY27, with an estimated valuation impact of approximately PkR3.0 per share.

AKD Securities Limited maintains a ‘BUY’ stance on PPL, with a target price of PkR281 per share by December 2025, indicating a 61% upside from current levels. The recommendation is based on structural gas price reforms, progress on circular debt resolution, and PPL’s diversification into mining assets, including the BLZ Project.