CHINIOT IRON ORE RESOURCE

MINING, PROCESSING AND STEEL MILLS COMPLEX

PUNJAB MINERAL COMPANY (PMC)

PAKISTAN
www.pmc.punjab.gov.pk
WHO ARE WE
Punjab Mineral Company is the flagship
organization of the Government of
Punjab, PAKISTAN, working in
accordance with international
standards to explore mineral potential
of the province.
Work on Chiniot Iron resource is being
carried out in collaboration with
renowned international companies to
develop its Iron and Copper potential.
Resource estimation of Chiniot deposit
is near completion.
Key Milestones of PMC:
• Province’s first ever Mineral
Policy (Punjab Mineral
Policy 2018)
• Metallic Minerals (~250 Mt
Iron Resource- Chiniot)
• Non Metallic Minerals
(~511 Mt Coal Resource -
Salt Range)
• Delineation of areas for
installation of Cement
Plants in Punjab
01
CHINIOT RESOURCE
Headline Facts:
• Iron Oxide Copper Gold (IOCG)
Type Deposit
• Chiniot Iron Resource ~250 Mt
• Exploration in 2 Phases: Phase
I report on NI 43 101 available,
Phase II is in progress
• Copper occurrence witnessed
• Magnetite 80% Hematite 20%
• Products: Iron fines & Hot
Rolled Coils
• Motorway, Rail, Roads and
Communication network are
available
• Raw Materials for processing
also locally available
• Work done by International
Experts
• Mine Life >40 years
• CAPEX ~ USD 1.3 Billion
• Under ground Cut & Fill Stope
Mining
• Conventional Beneficiation
• Steel making proposed on
COREX technology
 INVEST IN PAKISTAN

Government of Pakistan envisages that there is a dire need to exploit metallic

minerals for sustainable economic growth. Presently, indigenous mining and
milling for iron and steel production is non-existent in Pakistan.

Establishment of mining & processing facility is under consideration at Chiniot.

To facilitate fast track development of resource, investment from private
sectors is being invited.

PAKISTAN FACES GAPS IN LOCAL DEMAND & SUPPLY OF

IRON & STEEL

Pakistan
World’s 13th Growing
Population
Largest net of +220
Importer of Million
Iron & Steel

Annual Annual
Import Import
Amount Quantity 7-
Above US$ 8 Million
3.0 Billion Tons

Mega Projects
CPEC, Industry
Gwadar, CAGR 16%
Dams, NAPHS

Lets grow together

02
LOCAL MARKET – KEY PLAYERS IRON AND STEEL

Category Product Line Company

Billets Rebar, Wire- Amreli Steels Ltd
Rod, Angles,
Shapes, Sections, Mughal Steels Ltd
Long Products Beams, Girders
Agha Steels
Abbas Steels
Pakistan Steel Mills*

Hot Rolled Coil Pakistan Steel Mills*

Flat Products Cold Rolled Coil Aisha Steels Ltd

Galvanized Coil International Steels
Spiral Welded Crescent Steels
Tubes & Pipes

Tubes and Pipes

Longitudinally International Industries
Welded Tubes &
Pipes

Seamless Pipes Huffaz Seamless Pipe

Peoples Steel
Alloy & Bars, plates, Peoples Steel
Engineering Works forgings

* Pakistan Steel Mills is out of commission since June 2015

03
IRON & COPPER RESOURCE

Iron Copper Steel

Economics
Resource Resource Production

250 Mt 15 Mt 1 Mtpa IRR 20%

TFe 30% @ 0.3% TCu Mine Production 4.2 MTPA Capex US$ 1.3 Billion

Magnetite 80% Chalcopyrite UG Cut & Fill Method Payback 9 years

Hematite 20% Malachite Conventional Processing Project Life +30 years

NI 43 101 Cu Upper Part Ore Body Pellet 65% 1.25 MTPA Special Economic Zone

Igneous Cu Central Part Ore Body Hot Rolled Coil Market Demand of HRC

EXPLORATION WORK ON INTERNATIONAL STANDARDS AT

CHINIOT

Resource Drilling
86 Boreholes
Drilled Meterage
73,451 m drilled

Core Samples Drawn

27,260 Samples for assays
Assays Received
23,634 Assays received
Petrography
115 Samples
X Ray Diffraction
192 Samples
GeoTech Studies
200 Samples
Hydro & Geo Boreholes
Hydro 5 Boreholes
Geo 3 boreholes in progress

04
 CHINIOT TOWN

The Iron Ore Resource is

located at the southern edge of
Chiniot Town and 35 Km north
of Faisalabad city in central part
of Punjab
Coordinates of the Project Site
Chiniot are; 309129E,
3510426N
Population of Chiniot Town is
approximately to 300,000

3D MODEL OF IRON ORE RESOURCE - CHINIOT

There are two types of Iron Ores:

• Hematite comprises 20% of Resource
• Magnetite comprises 80% of Resource
Red indicates presence of Copper
05
KEY STRENGTH OF CHINIOT RESOURCE

Road & Rail Network

LOGISTICS
Railway Line 02 Km
Faisalabad International Airport 50 Km
M4 Motorway (Sahianwala Interchange) 26 Km
M2 Motorway (Pindi Bhatian Interchange) 36 Km
Chiniot Ring Road (2 Km Radius) 0.5 Km
Faisalabad-Sargodha Road 02 Km

Jhang Road 0.5

Km
COMMUNICATION
Telephone & Cellular Services
Fax
Internet

UTILITIES
Surplus Power In National Grid
Water
Natural Gas
Motorway National Highway Railway Line City Road

LOCAL IRON ORE UTILIZATION

Currently no other competing resource
Presently, no local iron ore utilization
Long term strategic partnership for import
substitution Chiniot Iron Ore
Deposit
SPECIAL ECONOMIC ZONE (SEZ) FIEDMC
Near to FIEDMC SEZ (28 Km) Industrial City
SEZ for Chiniot Deposit under
consideration
10 years tax holiday
Zero taxes on import of Machinery
Provision of Utilities & Logistics

OTHERS
Ore Processing at Mine Mouth
Ongoing exploration in new areas
Safe and secure working environment Faisalabad International
Near to industrial hub Airport
Moderate climate

06
EXPLORATION WORK AT CHINIOT

Magnetite ore Hematite ore Copper ore

CHINIOT PROJECT PROGRESSION

Phase I of Phase II of
Exploration Exploration Investor Interaction
NI 43 101 Report Transaction
NI 43 101 Report
Expected 250 Million Structuring Agreeing
149.8 Million Tons
Tons Iron Ore terms with investors
Iron Ore Resource
Resource

2014-2017 2017-2023 Ongoing

PMC driving Chiniot Project

2017 2023 2024

Business Case Phase I Business Case Phase II Initiation of
1 Million Ton Per Development
>1 Million Ton Per
Annum Steel Feasibility
Annum Steel
Completion and
Production for 30 Production for >40
Agreement Sign off
years years

07
KIRANA BASEMENT HIGH - CORRIDOR OF METALLIC MINERALS

Semi-Detailed Magnetic Survey

of 18,000 Square Kilometer has
identified 36 Metallic Mineral
Anomalies in Central Punjab

CORRIDOR OF METALLIC MINERALS IN PUNJAB

18000 Sq Km with 36 Anomalies

18000 Square Kilometer identified with anomalies, 15,000 Square Kilometer area of
Kirana Basement High – remain UNEXPLORED

08
PROPOSED MINING & PROCESSING OF CHINIOT RESOURCE

MINING
Underground (UG) Cut & Fill Stoping
Mining Method recommended by
DMT Germany for the Resource

UG Mining will reduce hydrological,

environmental & social problems

100m hard rock safety pillar on top

will not be mined to preserve the
integrity of the surface structure

Access incline to main ore body will

start from Chiniot hill in north about 1
Km away

2 inclines will access the ore body,

one for man & material and second
for production

PROCESSING
Processing include Conventional
Crushing and Milling at first step

Magnetic Separation and

Floatation at Second step

Ore concentartion will be upgraded

from 30.79 % TFe to >65% TFe

Feed mix ratio, Magnetite 75% :

Hematite 25%

Input : Iron ore feed of 4.24 Million

tons per annum @ 28.92% TFe

Output: 1.25 Million tons per

annum pellets / fines >65% TFe

09
STEEL MAKING - COREX

Economical than Blast Furnace (Low Opex & Capex)

Elimination of Sinter Process

Uses Coal Instead of Coke (Cheaper & Locally Available)

No higher hydrocarbons by-products (Cracked into CO and H2)

Lower sulphur & dust emissions as compared to traditional blast furnace

10
HIGHLIGHTS OF BUSINESS CASE

AVAILABILITY OF LOCAL RESOURCES CAPEX AND RETURN

Business Case on the basis of Phase I

Coal Raw Material

Coke substituted INITIAL CAPEX (Million US Dollars)

Dolomite,
by Coal in Corex Bentonite &
Technology Project Cost
Limestone
Locally Available available within
in Punjab & a radius of 100 Mining 154.00
other provinces Km of Project
of Pakistan site in Salt Processing 189.00
Range, Punjab
Smelter/Mill 930.00

Total 1,273.00
Iron Others
Expected
Resource 250 Availability of FINANCIALS
IRON ORE surplus Power
Million tons PROCESSING (Demand 300 IRR 20%
Iron content AND STEEL MW)
30% MAKING
Water Availability NPV @ 10% 750 Million USD
Available at
mine mouth Payback 9 Years

Capex
Under Ground
INVESTMENT OPTIONS Mining

• JOINT VENTURE (EQUITY SHAREHOLDING)

Processing
• AUCTION/TRANSFER OF RIGHTS
Smelting
• ANY MUTUALLY BENEFICIAL MODEL

PROFILE OF JOINT VENTURE

• License Holder - Punjab Mineral Company (Private) Ltd
• Experience of Underground Mining
• Ability to operate Iron Ore Processing Plant
• Capacity for Copper Processing

11
CHINIOT PROJECT – INCREASING ECONOMIC VALUE

Corex Method of Technology

Recommended

STEEL MAKING

Underground Cut & Fill Sub-

level Stoping method PROCESSING

MINING
Conventional Crushing Separation &
Pelletization
EXPLORATION

250 Million Tons of Iron Deposit

IMPACT OF CHINIOT PROJECT ON PAKISTAN’S ECONOMY

Steel Mills at Steel Input

Chiniot Industrial Growth
of Industries
Job Employment 2500-5000 employee Hand tools
Training and Education Complex Factory Machinery
Uplift of Urban life Lorries, Trucks and Containers
Urban & Rural Growth
Sustainable Supply Chain Cutlery, Medical Equipment
Technological Advancement Motor Cars, Motor Cycles
Local Coal & Limestone Ships, Missiles and Aircrafts
Downstream industrial development Uplift of Standard of Living Houses, Bridges and Construction
Infrastructure Development Pylons and transmitters

Turnaround Industry Overall Growth of Steel Backbone of

Steel Industry Iron andPakistan
Steel mills are Steel isGrowth
a backbone of
contributes to Necessary for Steel is the mother of
economy manifold economic progress all industries
and prosperity of
Pakistan

12
FOREIGN ENTITIES WORKING ON CHINIOT RESOURCE

Wuhan Surveying – Geotechnical Research Institute (WSGRI), Resource Estimation in

Chiniot area (Phase 1)

BAW Mining Inc., Toronto, (BAW) independent technical report on the mineral resources

GEO-RC Resident Consultant (RC) is a German-Pakistani company resident exploration

supervisory services

SGS is the world’s leading inspection, verification, testing & certification company
provided Assay analysis services for Phase 1 & 2 of Exploration

AcmeLabs and Inspectorate provided Assay analysis services for the Phase 1 exploration
at Chiniot.

EY (Ernst & Young) has been contracted to develop a Restructuring Plan for the Mines
and Minerals Department of the Government of the Punjab.

Grant Thornton (GT) has provided services in relation to the international tender for
services outlined in many of the programs above.

Rocklore provided mineral exploration, development and corporate services and independent
consultancy services, directly supporting the board of PMC.

The DMT group provides independent services for Exploration, Engineering, Consulting
and Business viability and lead member of the consortium providing Transaction
Advisory services
NESPAK Pakistan is a member of the Transaction Advisory consortium & instrumental for
infrastructural, social & environmental issues.
The MME is a member of the Transaction Advisory consortium and responsible for the
steel making technology and related infrastructure.
Endeavour Financial (Endeavour) provides their experience in both natural resources
and finance, including: investment bankers, geologists, mining engineers, cash flow
modelers and financiers.
Ortadogu, Turkey has been engaged as Project Contractors to conduct resource drilling
and geophysical surveys for Phase II of exploration in Punjab.

Fugro, German Company is providing resident consultancy services for the ongoing
development of the Chiniot Iron Ore Resource Exploration (Phase II).

13
 FOREIGN EXPERTS WHO CONTRIBUTED IN BUILDING UP CHINIOT RESOURCE

Dr. Liu Shuxiang Yong Xu Feng Wei ZhaoShugang Matthias Helbig Dr. Weiliang Wang Dr. Jürgen Hartsch
Project Manager Senior Geologist Geologist Geological Modeler Geological Modeler Qualified Person Team Leader
MCCI MCCI MCCI MCCI MCCI MCCI GEOS

Sarp Ayken Dr. Mesut Soylu Dr. Uta Alisch Dr. Jens Krumb Ralph Braumann Dr. Jörg Neßler
Ahmet Zeki Doptemir Senior Geologist
Chairman BOD Manager Drilling Principle Geologist Team Leader Principal Geologist Project Manager
ORTADOGU ORTADOGU ORTADOGU FUGRO FUGRO FUGRO FUGRO

Axel Oppermann Andrew Craig

Business Development Manager Individual Consultant
FUGRO Rocklore Exploration
Services Ltd.

Michael Loos Flavio Cozzi Dr. Ernst-Bernhard Dr. Hanspeter Tomschi Florian Beier
Team Leader Metallurgical Expert Teigler Geologist Hydrogeological and Senior Mining
DMT DMT DMT Environmental Expert Engineer
DMT DMT

Nikolaos Christou Marion Thomas Paul Mainwaring Transaction George Pyper Clemens Mieth
Senior Mining Social & Environmental Expert Financial Expert Financial Analyst & Financial
Advisory Expert
Engineer DMT Endeavour Financial Modelling Expert
Endeavour Financial Ltd
DMT Ltd Endeavour Financial Ltd

14
DATA AND REPORTS AVAILABLE ON REQUEST FOR INVESTOR'S DUE DILIGENCE

Phase – I
15. QA/QC Report for Adjoining Areas Samples
1. Topography Survey Report
16. Contour Map & 3D Model of Bedrock
2. Geophysical Survey Report of Chiniot-Rajoa Area
17. Metallurgical Test Work Report
3. Geophysical Surveys of Adjoining Areas
18. Chinese Resource Report (English Version)
4. 36 Boreholes Completion Reports
19. Chinese Resource Report (Chinese Version)
5. Hydro-geological Study Report
20. NI 43 101 Ore Resources Report
6. Geo-technical Study Report
21. Strategic Option Analysis Report
7. Core Recovery & RQD Report
22. Base Business Case Report
8. Geological Core Logging Report
Phase - II
9. Core Cutting Report
23. Inception report of the project
10. Sample List Report for 36 Boreholes
24. Interim resource estimation (3D, Leapfrog model
11. Permanent tags marking of the 9657 core boxes based on Assays and logging data based on
for 36 boreholes 20,000 plus samples)
12. X-ray analysis by use of diffractometer (XRD 25. Preliminary borehole completion report of 50
Reports) boreholes
13. Petrography and ore microscopy report 26. Borehole completion report of Contractor for 50
14. QA/QC Report for SGS samples of Chiniot- boreholes
Rajoa Area 27. Hydro borehole completion reports (3 boreholes)

CHINIOT

PUNJAB MINERAL COMPANY (PRIVATE) LIMITED (PMC)

Building No. 07, Block F, Model Town, Lahore, Pakistan
UAN: + 92 42 111 222 PMC (762)
e-mail: info@pmc.punjab.gov.pk
www.pmc.punjab.gov.pk