Pakistan’s mineral-rich Chagai district could become a global centre for low-carbon battery materials by combining vast copper deposits, lithium exploration prospects and renewable energy resources with industrial processing and international trade infrastructure.
The country’s largest district, bordering Iran and Afghanistan, hosts major copper-gold deposits, including the Reko Diq project being developed in partnership with Barrick Mining (TSX: ABX, NYSE: B). Its renewable energy potential could support mining, refining and downstream manufacturing while reducing dependence on fossil fuels.
International Chamber of Commerce Secretary-General John Denton AO has said the broader Pakistan Economic Gateway initiative promises to contribute significantly to the global green transition while creating business opportunities for companies worldwide.
The opportunity comes as the International Energy Agency forecasts that demand for critical minerals could triple by 2030 and quadruple by 2040. Developing new supplies will require substantial investment, but countries that integrate mineral production with clean energy and manufacturing could capture a greater share of the industry’s economic benefits.
Chagai’s ambitions nevertheless face significant hurdles. Much of its mineral potential remains unproven commercially, while large-scale processing would require reliable electricity, water management, transport infrastructure, financing and security.
Copper and lithium potential
Chagai’s copper industry has historical roots. Deputy Commissioner McConaughey documented extensive remnants of ancient copper-smelting operations in the district gazetteer, including slag heaps reportedly used to construct a small fort.
Canadian-assisted aeromagnetic surveys during the 1960s identified 48 porphyry systems across the district, highlighting its geological potential.
The Reko Diq Porphyry Complex comprises 18 porphyry systems and contains some of Chagai’s largest copper-gold deposits. Barrick’s development plans have envisaged processing 80 million tonnes of ore annually.
Other copper-bearing prospects include Dasht-e-Kain, Ting-Dargun, Ziarat Pir Sultan, Machi, Ganshero and Ziarate. Discoveries near Mashki Chah include Siah Diq, described as the district’s largest individual porphyry, and another deposit covering 2.16 sq. km. Saindak remains the district’s established operating copper mine.
Copper’s importance extends across clean-energy technologies. Solar installations require an estimated 5.5 tonnes per megawatt, while a three-megawatt wind turbine can contain 4.7 tonnes. A battery-electric vehicle requires approximately 83 kg of copper.
Chagai also contains reported occurrences of cobalt, nickel and manganese, although their commercial viability requires further investigation.
Lithium presents another potential opportunity. Hamun-e-Mashkel’s geological setting suggests the possible presence of lithium-bearing salar or ancient salar deposits, while sediment analysis at Hamun-i-Lora has identified lithium occurrences.
Additional exploration targets include geothermal springs at Chiken Diq and Koh-i-Sultan, intrusive formations potentially containing pegmatites, and prospective brine-bearing areas at Dasht-e-Talab, Hamun-i-Kuchakki and Panjgur Kaps.
However, geological indications do not establish economically recoverable reserves. Systematic exploration, internationally recognized resource estimates and feasibility studies will be essential before commercial development can proceed.
Renewable energy could provide a competitive advantage. Western Chagai contains a wind corridor extending across approximately 10,000 sq. km, with reported wind speeds reaching 9.5 metres per second. World Bank assessments have also identified the district’s strong solar potential.
Geothermal springs associated with the dormant Koh-i-Sultan volcanic system reportedly reach temperatures of 120°C to 150°C, warranting investigation into their electricity-generation potential.
Combining these resources with battery storage, electrified mining equipment and dedicated transmission infrastructure could lower operational emissions. However, the carbon intensity of finished products would ultimately depend on the energy used throughout extraction, processing and transportation.
Building industrial capacity
Transforming Chagai into an internationally competitive battery minerals hub will require an integrated industrial strategy rather than a narrow focus on exporting raw ore.
Pakistan should prioritize scientific exploration and bankable feasibility studies while developing clean industrial power systems capable of supporting energy-intensive mineral processing.
Domestic beneficiation, smelting and refining facilities could eventually produce copper cathodes and processed lithium, nickel, cobalt and manganese products, provided sufficient commercially recoverable feedstock is established.
Improved transport connections would be equally important. Chagai’s proximity to Iran and Afghanistan offers potential access to West Asian, Central Asian and European markets through road and rail corridors, including routes operating under the Transports Internationaux Routiers system. Gwadar and Karachi could provide complementary maritime export channels.
The industrial framework should also incorporate specialized research centres, technical education and workforce development to strengthen domestic expertise in mining, metallurgy, energy and logistics.
Public-private partnerships could help attract international investment while distributing project risks. Transparent governance, predictable regulations and credible environmental safeguards would be critical to securing long-term financing.
Water conservation, wastewater treatment, circular waste management and engineered tailings facilities would be particularly important in Chagai’s arid environment. A comprehensive security framework would also be needed to protect workers, infrastructure and transportation networks.
These measures align with the broader Pakistan Economic Gateway framework, which advocates using Pakistan’s geographic position and industrial potential to strengthen international commercial connectivity.
For mining companies, equipment manufacturers, infrastructure developers and renewable energy investors, early participation could create opportunities to establish new supply chains and long-term industrial partnerships.
Yet Chagai’s success will depend on more than attracting capital. Pakistan must demonstrate that its mineral resources can be developed economically, processed competitively and delivered to international customers under credible environmental and operational standards.
If those conditions are met, Chagai could evolve from a largely resource-focused mining district into a centre for lower-carbon mineral production and value-added manufacturing, positioning Pakistan more prominently within the global energy transition.
Shahryar Khan Niazi is a strategist and author of “Game Plan: Pakistan Economic Gateway“.
Source: https://www.mining.com/op-ed-can-chagai-become-a-low-carbon-battery-minerals-hub/
