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PPL Approves Funding For Govt of Balochistan’s Capital Contribution in Lead-Zinc Mining Project

Pakistan Petroleum Limited (PSX: PPL) has approved the funding of the Government of Balochistan’s share of capital contribution in the large-scale mining project for lead and zinc in Khuzdar (BLZ Project), the company informed the Pakistan Stock Exchange on Tuesday.

The Board of Directors, in its meeting held on 3rd February 2024 has approved, in principle, funding of the Government of Balochistan’s share of capital contribution in the BLZ Project by PPL. “The Company shall arrange funding, from its own cashflows, for GoB’s capital contribution through a financing arrangement,” the stock filing stated.

 
 

Debt servicing would be through the Balochistan government’s share of project cashflows. To this end, 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, the filing added.

PPL on 13th December 2021 disclosed the grant of a large-scale Mining Lease for Lead and Zinc, in District Khuzdar, by the Government of Balochistan and the execution of a 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).

It said in a letter at the time that the lease shall be operated by Bolan Mining Enterprises, a 50:50 Joint Venture between PPL and the Government of Balochistan.

PPL was incorporated in Pakistan in 1950 with the main objectives of conducting exploration, prospecting, development, and production of oil and natural gas resources.

 

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