Canadian mining company signs MoU with Mari Energies in South Asia push

Canadian mining giant Ivanhoe Mines has signed a memorandum of understanding (MoU) with Mari Energies, a South Asian mining company, to expand its presence in the region. The deal was announced during the Pakistan Minerals Investment Forum, where Ivanhoe's chairman, Robert Friedland, expressed enthusiasm about the partnership. Mari Energies, through its subsidiary Mari Minerals, is involved in various mineral exploration projects, including copper and gold in Pakistan.

The MoU marks Ivanhoe's entry into South Asia, moving beyond its major projects in southern Africa. Punjab Chief Minister Maryam Nawaz highlighted the region's rich mineral potential, stating there was "significant evidence" of placer gold flowing in the province's five rivers. She emphasized that Pakistan's wealth, both above and beneath the ground, needed exploration and conversion into tangible assets.

Under the new agreement, Ivanhoe plans to establish a local office in Pakistan and will sign another MoU in the coming days. The Punjab government has been proactive in facilitating investments in the mining sector, offering one-window facilitation to streamline procedures and reduce bureaucratic delays. The province also boasts significant iron ore reserves, with Chiniot boasting 261.5 million tonnes of the resource.

The provincial government is taking steps to mitigate investors' capital expenditure by providing concessional financing of up to Rs5 billion and offering solar-powered energy solutions to offset high energy and fuel costs.