Lucky Cement is considering investing up to Rs. 1.2 billion in National Resources (NRL) to accelerate its mining and exploration activities in Balochistan.

NRL currently holds five exploration licenses covering copper-gold, lead-zinc, barite and antimony. Management said exploration and feasibility work on these projects is expected to continue for at least three to five years.

The potential investment adds mining and mineral exploration to Lucky Cement’s broader expansion strategy, which also includes renewable energy and overseas cement operations.

At its Karachi plant, Lucky Cement plans to increase solar capacity by 15MW, taking total installed solar capacity to 89.3MW. The site also has 29MW of wind power, with renewable energy sources currently supplying around 55 percent of the plant’s total energy needs.

Management said the greater use of renewable energy is helping lower energy costs and the company’s carbon footprint while providing an advantage amid higher and fluctuating energy prices.

Coal usage at the Karachi facility remains relatively elevated because of its older technology. To improve efficiency, Lucky Cement has installed UTIS technology across all four production lines to cut coal consumption in cement manufacturing.

The company’s overseas business remains an important part of its growth plans. Lucky Cement has around 15.6 million tons per annum (MTPA) of cement capacity in Pakistan and another 5 MTPA internationally, including operations in Congo and Iraq.

The Congo operation is currently running at high utilization, leading the company to expand its capacity from 1.6 MTPA to 3.2 MTPA. Construction work began in the current quarter, with completion expected within the next 18 months.

Management said strong cash generation gives the company flexibility to meet contingencies and finance future investments. It is not currently considering a new local cement investment, with future growth expected to remain organic.

Lucky Motor Corporation has also partnered with GAC Group and plans to launch three new vehicle models, while another model is expected to arrive in the coming months.

Cement retention pricing is currently around Rs. 15,500 per bag in both the North and South.

Exports from the southern region are also showing a positive trend, with management noting that Egypt’s reduced presence in export markets could support shipments from Lucky Cement’s southern plants.

Meanwhile, Lucky Chemical Industries’ operating profitability has declined amid tougher competition in the soda ash and polyester segments, mainly due to increased Chinese imports following weaker anti-dumping protection.