Pakistan mulls smelting hub at Siah Diq to tap copper boom

July 03, 2025 (MLN): Pakistan is stepping up efforts to unlock the broader copper potential of the Chaghi region as part of its strategy to maximize returns from the Siah Diq Copper Mine Project.

During a high-level review meeting on China-Pakistan Economic Corridor (CPEC) projects chaired by Planning Minister Ahsan Iqbal in Islamabad, the Ministry of Petroleum was tasked with evaluating the wider regional copper landscape and assessing the viability of setting up a local smelting facility.

Officials underscored the need to complete feasibility studies on an expedited timeline to keep pace with investment schedules tied to the project.

A local smelting plant could significantly boost value addition in Pakistan’s mining sector, reduce reliance on raw ore exports, and create new employment opportunities in Balochistan.

The push to fast-track studies on Siah Diq’s downstream potential comes as Pakistan looks to integrate mineral projects into the broader CPEC framework and attract fresh foreign investment into its mining and processing industries.

During the meeting, the Karakoram Highway (KKH) project came under discussion, where it was shared that a Chinese technical delegation is expected to visit Pakistan shortly to review various aspects of the project, particularly its financial feasibility.

In preparation for the visit, the Minister called for all concerned institutions to finalize the minutes of relevant working group meetings and ensure readiness ahead of the upcoming 14th Joint Cooperation Committee (JCC) meeting.

The Minister also emphasized the significance of the CPEC Review Meeting as a key decision-making platform for ensuring timely progress of projects.

He underlined the importance of active participation from all relevant ministries and departments to maintain momentum and coordination under the broader CPEC framework.

The forum noted that the JCC session is likely to be held shortly. To this end, the Minister directed conveners of all Joint Working Groups (JWGs) to hold their internal meetings during July 2025.

He also encouraged JWGs to develop clear, actionable proposals regarding the potential extension of CPEC to Afghanistan and to share them with the CPEC Secretariat at the earliest.

Progress reports from ministries were also discussed. The Minister appreciated the submissions made by some ministries and encouraged others to submit their updates in the prescribed format to ensure uniform proposal and alignment with overall project timelines.

The meeting also reviewed developments related to power supply for CPEC SEZs. The Minister reaffirmed the government's commitment to supporting industrial growth through reliable energy provision and highlighted the importance of resolving outstanding issues on a priority basis.

He underscored the need for a coordinated strategy to expedite infrastructure development and ensure smooth power connectivity for zones like Rashakai.

The Ministry of National Food Security & Research informed the forum that agricultural equipment has been distributed to all provinces.

The Minister recommended gathering feedback and utilization reports from provincial governments to ensure effective implementation.

Regarding Gwadar’s 1.2 MGD desalination plant, the Ministry of Maritime Affairs and Gwadar Port Authority were requested to submit a comprehensive operational plan outlining key components such as water tariff structure, supply area mapping, and defined operational responsibilities.

The Minister also proposed organizing an inauguration ceremony to mark the operationalization of the plant, reinforcing the government’s focus on improving basic services like water and electricity in Gwadar.

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