Although the province of Balochistan has been generously bestowed by nature with vast mineral resources, there are few minerals found in Loralai district. The potential for exploitation of both metallic and non-metallic minerals is negligible. Although systematic exploration on scientific lines has not been carried out much in the district, whatever work has been done shows that there is not much of a chance of finding other minerals except coal, calcite and marble.

The production of coal was 292,198 tonnes during 1994-95, whereas that of marble and calcite is negligible. The potential of other minerals is not known.

In this sector most of the people are employed in the coal mining, while only 26 people were engaged in calcite mining. The number of people employed in the coal mining industry was 2,307 in 1992 which increased to 2,623 in 1993, but decreased again to 2,464 in 1994⁵⁴.

The total estimated reserve of all the coal fields in Balochistan is 195 million tonnes. In Duki, Loralai district. the total reserve has been estimated at 51 million tonnes, which is 26.15% of the total reserves of the Province. Of the total of 51 million tonnes, 14 million tonnes are proven reserves, 11 million tonnes have been indicated, whereas additional 26 million tonnes were estimated.⁵⁵

Coal mining in Balochistan was started on a small scale before independence in Khost, Shahrig Harnai areas and has increased over time. Coal is extracted by the underground mining method. Underground mining involves a system of sub-surface working to extract any solid mineral resources that cannot be worked at the surface. Most mines consist of one or more means of access via vertical shafts, horizontal galleys, or inclined roadways. These are used for transport of men, machinery, material and the extracted produce and waste. They also form part of the systems for ventilation and the control of underground water that are essential to mining operations. Indeed, in many underground mines, substantial amounts of energy are used for in pumping air and water to keep the working areas dry and well ventilated.

In the coal fields underground mining takes place to variable depths. In some places the coal mining has reached as deep as 1150 meters.

The technology used is semi-mechanized, where pulleys and steel ropes are used. In some coal mines mining is done through fox holing. Coal is brought out of the mines either through manual labour or through pulleys. The labour are working on piece wages.

Rs.5 per acre per annum is charged for the first two terms of the prospecting license. After this period Rs.15 per acre is charged. The charges are subject to a minimum of Rs.5000 as dead rent. Rs.6000 is charged as survey/demarcation fee. Rs.500 is charged as application fee for the prospecting license. An amount of Rs.1000 is charged for conversion of prospecting license to mining license. If a surveyor wants to be registered with the Directorate of Mineral Development an amount of Rs.1000 is charged for registration. Rs.2000 is the fee for coal dealers registration, whereas the renewal fee is Rs.1000. Renewal of surveyors registration is Rs.500⁵⁶. All these charges are levied by the Directorate of Mineral Development, but accrued to the exchequer of Government of Balochistan.

The local consumption of coal is negligible; most of the coal is exported to the province of Punjab, where it is used in brick kilns.

In Loralai district there is one regional office at Loralai headquarters. One Assistant Director is posted with necessary support staff.

Coal mining in Loralai district is almost exclusively a private enterprise affair. Government involvement is limited to licensing.

The scope of mineral exploration and exploitation is very limited. The major mineral found in the district is coal. The other minerals are calcite and marble, the production of these, however, is negligible.

The productivity of coal has increased both in terms of production and value. The coal mines have the potential to be explored and exploited along semi-mechanized lines. Highly sophisticated technology is not feasible at the moment due to various factors. Low educational levels and limited demand are major factors responsible for this.

Some of the mines are owned by Pakistan Mineral Development Corporation, they are mechanized but the profit is low compared to private owned mines. Privatization may bring more efficiency and increase productivity.

Minerals (excluding petroleum and metallic mineral) are in the concurrent list, and are provincial subjects. District Council and Federal Government have no jurisdiction of levying taxes or fees.

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