Pakistan’s largest Chinese-operated gold and copper mining company, Saindak Metals Limited (SML), has warned that it could be forced to suspend operations within a month due to the deteriorating law and order situation in Balochistan, according to a report by the Financial Times.
In a letter sent to the Ministry of Energy, the company’s managing director said the worsening security conditions in the province have severely disrupted the transportation of essential equipment and cargo needed to keep the project running.
The letter warned that if the situation continues uninterrupted, it will become impossible to maintain continuous operations at the Saindak Copper-Gold Project. It added that the project may have to cease operations within a month because of shortages of critical production materials and logistical support.
Saindak Metals Limited is a state-owned Pakistani company associated with the Saindak mining project in Balochistan, which was launched in collaboration with the Resource Development Corporation (RDC). The project is considered Pakistan’s first large-scale modern mining venture.
In 1992, SML awarded the construction contract for the project to China’s Metallurgical Corporation of China (MCC), with the original plan to complete and hand over the project by August 1995.
Citing official data, the Financial Times reported that the Saindak project accounted for a significant share of Pakistan’s $750 million worth of copper production and exports last year.
