Pakistan Petroleum Limited (PPL) has signed Amendment No. 1 to its Operating Agreement with the Government of Balochistan (GoB), originally established on November 15, 2004. The amendment broadens the scope of their joint venture, the Baryte, Lead, and Zinc (BLZ) Project, the company announced on Thursday.

Under the revised agreement, the area covered by Mining Lease No. 16, granted in December 2021 in Khuzdar District for lead and zinc mining, has been integrated into the existing Barytes Project in Gunga. The updated arrangement designates the Balochistan Minerals Exploration Company (BME), a GoB entity, as the operator of the expanded BLZ Project. The agreement also prioritizes employment opportunities for local residents.

Funding for the project will be shared between PPL and the Balochistan government based on their respective equity stakes. PPL plans to finance its share through internal cash flows, while the provincial government will contribute via a financing arrangement. The project’s viability is supported by a Bankable Feasibility Study conducted in 2019 by DMT, a German consultancy.

Currently in its development phase, the BLZ Project is projected to generate average annual revenues of $144 million, with a net present value of $356 million over its estimated 32-year lifespan.