Lucky Cement weighs Rs1.2bn Balochistan mining push

Lucky Cement is weighing an investment of up to Rs1.2 billion in National Resources (Private) Limited (NRL) to accelerate copper and gold exploration in Balochistan, according to reports by TechJuice and ProPakistani on Thursday.

The Karachi-listed cement maker already holds 33.33 percent of NRL, which focuses on metals exploration and has secured rights for copper, gold, lead, zinc and other minerals in Balochistan. ProPakistani reported that NRL has identified significant copper-gold mineralization in Chagai and has drilled across a large licensed area to evaluate multiple prospects.

Management said exploration and feasibility work across NRL's projects is expected to take at least three to five years, making the proposed investment part of a longer-term effort to establish commercially viable mining projects rather than an immediate production expansion.

Beyond mining, Lucky Cement is expanding its renewable-energy footprint at its Karachi plant, where it plans to add 15MW of solar capacity, taking total installed solar capacity to 89.3MW. The plant also has 29MW of wind power, and renewables currently meet around 55 percent of total energy needs.

Management said greater use of renewables is helping cut energy costs and carbon emissions while providing protection against volatile energy prices. Coal consumption at the Karachi plant remains comparatively high because of older technology, but the company has installed UTIS technology across all four production lines to improve efficiency and reduce coal use.

International operations remain another growth area. Lucky Cement has around 15.6 million tons per annum of cement capacity in Pakistan and 5 MTPA outside the country, including Congo and Iraq. Its Congo operation is running at high utilization, prompting expansion from 1.6 MTPA to 3.2 MTPA; construction began in the current quarter with completion targeted within 18 months.

Management said strong cash generation provides flexibility for contingencies and future investments, and that the company is not currently considering another local cement investment, expecting future growth in Pakistan to remain organic.