KARACHI: Pakistan Petroleum Limited (PPL) has signed Amendment No 1 to the operating agreement for the barytes project in Balochistan, furthering the development of the Baryte, Lead, and Zinc (BLZ) Project. The amendment, made with the Balochistan government, incorporates the area under Mining Lease No 16 in District Khuzdar, which was executed on December 6, 2021, into the existing agreement. This addition supplements the current Barytes area in Gunga, Khuzdar.

PPL, through its mining subsidiary BME, will act as the operator of the BLZ Project. The agreement includes a commitment to prioritise local residents for employment opportunities. Both PPL and the Balochistan government will contribute funding to the project in line with their equity shares. To facilitate the provincial government’s capital contribution, PPL will arrange financing from its own cash flows.

A Bankable International Standard Feasibility Study, completed in 2019 by DMT of Germany, confirmed the project’s viability. The BLZ Project is currently in its development phase and is expected to generate annual revenue of around $144 million, with a net present value (NPV) of $356 million over its projected 32-year mine life. This announcement complies with Section 96 of the Securities Act, 2015, and Clause 5.6.1 of the Pakistan Stock Exchange Limited Regulations.