February 06, 2024 (MLN): The Board of Directors (BoD) of Pakistan Petroleum Limited (PSX: PPL) on Saturday approved the funding of the Government of Balochistan (GoB)'s share of capital contribution to the BLZ Project, the company's filing on PSX revealed today.
The company shall arrange funding, from its cashflows, for GoB's capital contribution through a financing arrangement. Debt servicing would be through GoB's share of project cashflows.
For this, a Financing Agreement shall be executed by the company with GoB, subject to all requisite approvals, including but not limited to, the approval of the Balochistan Provincial Cabinet and the shareholders of the company.
What is BLZ Project?
On December 13, 2021, the company was granted a large-scale Mining Lease for Lead and Zinc, in District Khuzdar, by the GoB and executed a Large Scale Mining Lease Deed in this regard.
For large-scale mining and establishment of a Lead-Zinc processing plant in District Khuzdar, Balochistan (BLZ Project) over an area covering 30 Sq.km (7413.16 acres), the lease shall be operated by Bolan Mining Enterprises, a 50:50 Joint Venture between the company and GoB.
