Lucky Cement Eyes Big Investment in Balochistan

Lucky Cement (PSX: LUCK) is considering an investment of up to Rs.

Key points

• Lucky Cement has around 15.6 million tons per annum (MTPA) of cement capacity in Pakistan and 5 MTPA outside the country, including Congo and Iraq.
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• Its Congo operation is running at high utilization, leading the firm to expand capacity from 1.6 MTPA to 3.2 MTPA.
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• Lucky Cement holds 33.33 percent in the firm.

Lucky Cement (PSX: LUCK) is considering an investment of up to Rs. 1.2 billion in National Resources (Private) Limited (NRL) to accelerate copper, gold and other mineral exploration projects in Balochistan to further expand its cement, energy and international operations.

NRL is focused on the exploration and development of metals, mainly copper and gold, and has additionally secured exploration rights for lead and zinc and other minerals in the province. Lucky Cement holds 33.33 percent in the firm. Pakistan Now Has Enough Energy Reserves for 19 Years.

In practice, the firm has already noted significant copper-gold mineralization in Chagai, where it has been conducting exploration throughout a substantial licensed area. NRL has identified multiple prospects and has carried out drilling as it evaluates the potential of the deposits.

Management remarked exploration and feasibility work throughout NRL's projects is projected to take at least three to five years. This means the proposed investment is 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. It intends to add 15MW of solar capacity, taking total installed solar capacity to 89.3MW. The plant additionally has 29MW of wind power, with renewable energy at present session around 55 percent of its total energy requirements.

Management remarked greater apply of renewable energy is helping reduce energy costs and the company's carbon footprint while providing some protection against volatile energy rates.

Coal consumption at the Karachi plant remains comparatively high since of its older technology. Lucky Cement has installed UTIS technology throughout all four production lines to improve efficiency and reduce coal consumption in cement manufacturing.

International operations remain another significant expansion area. Lucky Cement has around 15.6 million tons per annum (MTPA) of cement capacity in Pakistan and 5 MTPA outside the country, including Congo and Iraq. ADB, World Bank Consider Funding $6.8 Billion ML-1 Project.

Its Congo operation is running at high utilization, leading the firm to expand capacity from 1.6 MTPA to 3.2 MTPA. Construction has began in the current quarter, with completion targeted within the next 18 months.

Management remarked robust cash generation provides flexibility for contingencies and future investments. The firm is not at present considering another local cement investment and expects future expansion in Pakistan to remain organic. Stay Connected with ProPakistani.

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In short, lucky Cement Eyes Big Investment in Balochistan is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.