Pakistan’s mining sector is endowed with tremendous potential as the country houses vast reserves that include the world’s second-largest salt and coal deposits, the fifth-largest copper and gold reserves, and an estimated 618 billion barrels of crude oil. Covering an outcrop area of approximately 600,000 square kilometers, the country is home to 92 known minerals, 52 of which are commercially exploited albeit at a suboptimal level. Yet despite this natural abundance of minerals in the country, the mining sector’s contribution to Pakistan’s GDP remains at a modest 3%, and its global export share is only 0.1%. This is a glaring shortfall in the actualisation of economic potential, especially given that global mineral exports amounted to USD 401 billion in 2017, compared to Pakistan’s mere USD 0.5 billion. Significant work needs to be done to realise the economic benefits of Pakistan’s mining endowment on a meaningful, inclusive, and well-scaled basis. The introduction of space technologies in this sector (i.e. the ‘space economy’) may address part of the issue, particularly in three elements of the mining process: resource mapping (including prospecting & exploration), infrastructure development assistance, and environmental monitoring.
Resource Mapping and Exploration
The primary value proposition of space technologies in the mining sector lies in the prospecting and detection phase. Traditionally, mineral exploration has been costly, time-consuming, and sometimes dangerous. Additionally, the scope of mineral wealth in Pakistan is still not fully known, and may be larger than the estimates thus far suggest. Satellite-based technologies offer a far more efficient method of resource mapping, allowing mining companies to identify mineral deposits with greater accuracy and reduced exploration time. These technologies provide remote sensing data that assist with geomodeling and 3D mapping, thus allowing for a comprehensive overview of mineral-rich areas.
To see an example of such resource mapping, one may turn to the example of the mining giant Anglo American, which partnered with the European Space Agency (ESA) in 2012 for mineral exploration in Brazil. Using advanced satellite radar technology, the company detected geological features indicative of valuable mineral deposits. The satellite data, combined with on-ground geological information, ultimately led to the discovery of new deposits of iron ore and nickel. Thus, through the usage of space technology for the extractive economy, Anglo American was able to pinpoint the resource areas and begin extraction with reduced environmental, business, insurance, and logistics costs. In a similar vein, Pakistan’s rich mineral reserves, including copper, coal, and gold, could equally be explored using these advanced technologies to locate untapped reserves and enhance the efficiency of mining operations.
Infrastructure Development and Logistics
The second major value proposition of space technologies in the mining sector is in infrastructure development. One of the significant challenges faced by the mining industry in Pakistan is the lack of proper infrastructure, particularly in remote and mountainous regions. Therefore, developing mine access roads and connecting networks to transport extracted minerals is critical for the industry’s growth. In that regard, satellites can be used to plan, design, and optimise transportation infrastructure, making the logistics of mining operations more efficient and less environmentally harmful.
A successful example of satellite technology being used for infrastructure development is seen in Canada. A 150-km all-season road was planned and constructed to connect the Gahcho Kué diamond mine with existing infrastructure, using satellite data and Geographic Information Systems (GIS) to minimise environmental impact and construction costs. This helped optimise the movement of extractive resources through an otherwise difficult terrain. Pakistan’s mining sector, especially in regions such as Balochistan and Gilgit-Baltistan, could benefit from similar applications to enhance the transportation of minerals, thereby reducing costs and improving overall mining efficiency.
Environmental Monitoring and Sustainability
Mining has significant environmental implications, including habitat destruction, water pollution, and the displacement of communities. This is where the third value proposition of space technologies comes into play: environmental monitoring. Satellites can monitor the impact of mining operations on water quality, vegetation cover, human settlements, and land use changes. The use of space-based monitoring helps ensure compliance with national and international environmental standards (which are even more stringent when global corporations are involved), it promotes more sustainable practices, and it can even help in the reclamation of mined land.
For example, in 2016, the De Beers Group used satellite imagery to monitor the environmental impacts of its mining operations in Botswana. By using high-resolution optical imagery and multispectral data, the company could track changes in ecosystems and assess the effectiveness of its land reclamation efforts. This allowed De Beers to manage its environmental impact more effectively. It is because of practices of this sort that Botswana itself has come to be known as an excellent manager of its extractive endowments. Similarly, in Pakistan, space-based monitoring could provide real-time data on the environmental consequences of mining, allowing stakeholders to take timely actions to mitigate negative effects, particularly where communities lie in proximity to the impacted area of mining operations.
Space – Only Part of the Solution
When pointing to the above advantages of space-based technologies in assisting the mining economy, it is also important to delineate the following caveat: the space economy is only part of the solution. In other words, space-based technologies are not a substitute for serious on-ground limitations that prevent the mining sector from growing, including: regulatory, human resource, finance, and technology issues. There are some glaring issues in the mining sector that cannot be circumvented through space technology alone; and for space technologies to play a meaningful role, these foundational issues must first be addressed.
One of the major challenges facing the mining industry in Pakistan is the reliance on outdated technology in both the quarrying and processing sub-sectors. Currently, the technology used is unable to produce standardised and uniform quality products for the domestic market, let alone for export. This lack of technological advancement directly impacts productivity and increases wastage. In quarrying alone, the wastage reaches an astonishing 75%, which is far higher than the international standard of 45%. This means that a substantial portion of valuable resources is lost during the extraction process, further reducing the economic potential of the sector. The adoption of space-based technologies, such as satellite imaging for exploration, while revolutionary in identifying mineral-rich areas, will have limited impact if the technology used on the ground remains outdated.
Another pressing issue is the low productivityof the workforce, which is further compounded by the lack of qualified and trained personnel in both mining and processing. There is a shortage of dedicated training institutes in Pakistan that would offer specialised education in mining and mineral processing at sufficient scale. This skills gap leads to a workforce that is not equipped to handle modern mining technologies or to adopt sustainable mining practices, which are increasingly important in the global economy. Without a well-trained workforce, the benefits of space-based technologies are unlikely to be realised fully. Establishing training institutions and investing in the education of miners and technicians is therefore essential. By building a workforce skilled in both traditional mining techniques and modern technologies, Pakistan can position itself as a competitive player in the global mining industry. Only then can space technologies truly supplement and enhance the sector.
The regulatory frameworkgoverning Pakistan’s mining sector is another significant obstacle. There are missing links between national mineral policies and provincial mining laws, which creates procedural delays and hurdles for investors. This fragmented regulatory environment is particularly discouraging for foreign investors, who may face unpredictable legal landscapes and prolonged delays in project approvals. Moreover, the lack of streamlined policies leads to inefficiencies in project execution, stalling the development of potential mining projects that could greatly benefit from space technologies. For space-based innovations to be impactful, there needs to be a coherent and supportive policy framework that encourages both domestic and international investments (in both mining and space contexts). This includes resolving the discrepancies between national and provincial laws, reducing bureaucratic delays, and providing a clearer pathway for investors. Addressing these governance issues would create a more attractive environment for the private sector to engage in high-tech mining solutions, including the integration of space technologies.
Additionally, the mining sector in Pakistan also suffers from limited access to finance, which is crucial for modernising operations, assuming project risk, scaling operations, and adopting new technologies. Currently, there is no mechanism for mining collateralisation, which makes it difficult for mining companies to secure the financing needed for large-scale projects. Additionally, dedicated and friendly banking products for the mining and processing sub-sectors are virtually nonexistent, further constraining growth and modernisation efforts. Without financial backing and a conducive investment environment, the full potential of space-based solutions for Pakistan’s mining sector will remain out of reach. Creating banking products tailored to the mining sector and offering financial incentives for the adoption of modern technologies would be crucial steps in enabling this transformation.
As such, the mining sector in Pakistan holds vast potential for economic growth and development, but it remains underdeveloped due to various challenges. However, outdated technology, unskilled workforce, fragmented regulatory framework, and lack of access to finance are major structural barriers that must be addressed before the benefits of space technologies can be fully realised. Once these foundational issues are resolved, space technologies can supplement and enhance the mining sector’s growth, potentially turning Pakistan’s rich mineral resources into a significant contributor to the country’s economic development.
Dr Usman W. Chohan is Advisor (Economic Affairs and National Development) at the Centre for Aerospace & Security Studies, Islamabad, Pakistan. He can be reached at cass.thinkers@casstt.com.
