Barite Mineral

(Extraction – Export)
Gohar Abid
Fatima Khalil
Ramsha Aamer
Babar Fawad
 Introduction
• Barite is a mineral composed of barium sulfate (BaSO4)
(found in as yellow, brown, white, blue, and gray colors, grade been
divided into up to 3.9, Sp. Gr. 4.0, Sp. Gr. 4.1, Sp. Gr. 4.2, and Sp. Gr. 4.3)
• It is mostly mined from layers of sedimentary rock
• High specific gravity of 4.5, which is exceptional for a nonmetallic
mineral.
• The high specific gravity of barite makes it suitable for a wide range of
industrial, medical, and manufacturing uses
 Uses of Barite
• Drilling for oil and gas extraction and as • Electric furnaces and metallurgy
cement covering of underwater pipes in the
transportation of oil and gas.
• Purification and preparation of sugar
from molasses
• Source for preparation of chemicals
• In paint as pigment
• Paper production
• Production of cement blocks
• Rubber production industries
• Pharmaceutical industries
• Linoleum materials
• Cosmetics Industry
• Leather industry, and weaving
• Currently, world production is 9.6m tons
• glass making industry annually, of which 80% is used in oil
industry, 10% in chemicals, 9% in other
industries and 1% in construction
 Global Demand
• global barite market was valued at US$ 1.29 bn in 2015 and is projected to
reach US$ 1.85 Bn by 2024
• CAGR of 4.1% between 2016 and 2024
• In 2024, Global Barite Market to exceed US$4 Billion
• Production Volume to Cross 11 Thousand Kilo Tons by 2024
• The amount of used barite per km of drilling has been reported to be
about 429 tons, average drill approximately 2kms – 11kms
9.5 million metric tons
 Supply Potential in Pakistan
• Pakistan ranks 13th globally with identified deposits of 13.71 million tons
(medium to high grade, and extracted both from surface and underground mining)
• The principal deposits are found at Bankhri (Lasbela), Kudni (Lasbela), Gunga
(Khuzdar) Koh-e-Sultan (Chaghai) and Duddar in Balochistan
• Extraction largely on 300km long Khuzdar-Lasbela, this belt consist of 11-40million
reserves of barite.
• Whereas only small quantities have been exported so far.
• 143 Barite Powder Suppliers & Exporters in Pakistan
 Legalities
• Can operate as PVT LTD Company, mining and refining license and
lease of land from government of Balochistan. They will allot the land for
refinery and will allocate the mining site.(for export) (RL, MDRL, EL,
ML)
 Assumptions
• Private limited company PVT LTD
• Mining/extraction barite lumps, refining/grinding into API certified 4.2
drilling grade barite powder
• Gunga Mines, Khuzdar/Lasbela district in Balochistan
• Exporting barite mineral to subsidiary company located all over the world
mainly in middle east. Who procure and import barite mineral in relatively
smaller quantities(1000s metric tons) from various exporters globally of a certain
grade. Their aim is to accumulate annual supply for the giant companies.
• Further sell it to giant petroleum companies like Saudi ARMCO and
ExxonMobil who buy in large quantities (kilo tons)
 Initial process
• Construction of facility and Installation of Location decision will be static as per the allocation of
required plants mining and facility site by the authorities / Government of
Balochistan.
-Closer to the Regional Corporation development highway
(RCD) highway
-API certified quality control laboratory will be developed • Flow of information will be handled through
-Tin Shed for storage area -Enterprise Resource planning(ERP) system (such as SAS)
• Recruitment of & Relative accounting software

-Skilled labor by local contractors for mining -Electronic data interchange(EDI) for external companies.

-Skilled labor for facility and plant -Recordable intercom system for internal communication or
intranet service.
-Supervising staff and senior level management (This task
will be outsourced by a well renowned recruitment -Internet (preferred, depends on availability)
agency)
Import/buy– plant and machinery

• The company can

either import itself
the machinery from
reputed brands or
can buy through
local importers and
third parties.
 Strategic
fit
• The company is offering a low price since customer has to buy
from it according to the given production time as per its
convenience.
• If the customer wants the same amount of barite before the given
production time, the company would need to install more
production plants and appoint more workers, because of which
the cost will be increased and so the price will be higher too.
 Raw Materials and Inbound logistics

• Maintenance equipment and oil

• Fuel for plant & machinery/ generator/ trucks
• Food stock, logistical material, safety equipment (such as stationary, IT
material, systems & software etc)
• Chemicals used for refining
• For the processing plant – extracted barite lumps will be used as raw
material
 Production Operations

• Push view process

• Grind approximately 200 metric tons of barite daily
• Annually, approximately 60,000 metric tons of grinded barite would be
produced
• Daily average extraction will 800-1000 metric tons
• Extraction will be according to the estimated annual target production
 Inventory & Storage capacity

• 2 storage shed units • Competitive edge

• 1st for Storage for barite lumps • Cycle inventory (annual sale)
approximately (capacity 10000
• Low implied uncertainty in
metric tons) demand
• 2nd Storage for refined and ground
barite (packaged in sack)(powder)
(capacity 70,000 metric tons)
(This going to stored till time of
annual sale as per contract.)
 Extraction Process

Processing
plant
Grinding and Refining Process
 Transportation

• Company owned 2 loader HinoPak trucks with a capacity of 1.5 metric tons each
(transport the barite lumps from the extraction site to the main processing facility)
• Annual export orders delivery to the Karachi ports (Transportation outsourced)
(long distance, massive quantity, once a year)
 Outbound Logistics

• Extracted barite lumps are loaded on company owned truck on daily basis
to deliver at the process plant facility.
• finished goods are stored in the 2nd main storage capacity
• packaged in sacks
• Sacks are loaded to the out sourced trucks.
 Export/Final delivery to the customer

• Completion of required documentation at the Karachi port

• Consignment will be handed over to the forwarder of the foreign
importing company (as per the contract)
• Unloading goods into the suitable containers(provided by the forwarder)
to export through shipping
Thank you