PESHAWAR (Kashmir English): The worst corruption and plunder in history within the minerals sector has been exposed, occurring during the Pakistan Tehreek-e-Insaf (PTI) tenure in Khyber Pakhtunkhwa.
Alleged irregularities have surfaced regarding multi-billion rupee contracts awarded for gold exploration and mining along the banks of the Indus and Kabul rivers during the Pakistan Tehreek-e-Insaf (PTI) administration in Khyber Pakhtunkhwa. It has been revealed that the National Accountability Bureau (NAB) has raised serious objections concerning the auction of mineral blocks, the determination of base prices, the allocation of contracts, and the mining procedures employed.
Furthermore, there is discussion regarding a request for the records of these controversial contracts from the Khyber Pakhtunkhwa Mines and Minerals Department.
According to available details, an official report from October 2024 indicated that the total value of the auctions for four mineral blocks designated for gold exploration along the Indus River amounted to approximately 4.93 billion rupees. However, questions have been raised regarding the auction process, the methodology for setting prices, and allegations that specific bidders were granted undue advantages.
The report states that the contract for ‘Block A’—valued at 1.25 billion rupees—was awarded to Globa Core (Pvt) Ltd; ‘Block B’—valued at 1.261 billion rupees—to Majco (Pvt) Ltd; ‘Block C’—valued at 1.305 billion rupees—to Himalaya Earth (Pvt) Ltd; and ‘Block D’—valued at 1.1111 billion rupees—to Shakardara Minerals (Pvt) Ltd.
Objections have also been raised regarding the process used to establish the base prices for these mineral blocks. According to available information, questions have been raised regarding the determination of base prices—specifically, that a 2015 geological study was overlooked and auction prices were set without an accurate estimation of gold reserves. Furthermore, concerns have emerged regarding the implementation of the Mineral Auction Rules 2022 and alleged irregularities within the auction process itself.
The investigation also covers the suspension, in November 2023, of geological mapping that had commenced in February 2022. Additionally, revelations that allotment letters were issued despite the failure to finalize agreements within the stipulated 14-day period have cast doubt on the contract approval process.
Another significant issue concerns mining activities along the banks of the Indus and Kabul rivers, where mining continued in November 2024 despite a stay order from the Peshawar High Court. This situation has prompted questions regarding the accountability of the relevant authorities and the basis upon which these activities were allowed to persist in defiance of a court order.
According to available details, objections have also been raised regarding the continuation of mining operations in the absence of environmental clearance and the requisite mining plan. Alleged illegal activities involving over 1,500 excavators have been identified in the relevant areas. Furthermore, it has been revealed that leaseholders have been collecting between 500,000 and 700,000 rupees per week from the owners or operators of these excavators.
Significant estimates regarding the revenue generated through unauthorized sub-leasing are also under discussion. Available information suggests weekly earnings ranging from 750 million to over 1 billion rupees. However, independent verification of these figures and a thorough examination of the relevant records will be essential to establish a clear financial picture of the situation.
Concerns have also been raised regarding the failure to provide complete records concerning the production and sale of gold extracted through mining. It is crucial to obtain a comprehensive account of production, sales, government dues, and the earnings of leaseholders to determine the financial gains derived from these mineral resources and the share accrued to the national exchequer.
Overall, questions surrounding the approval of mineral contracts, the oversight of auctions, compliance with regulations, and the documentation of post-mining production and sales have sparked a debate regarding the management of mineral resources during the PTI era. In light of the details emerging about the National Accountability Bureau (NAB) requesting records and the various objections raised, the perspectives of the relevant departments and the officials responsible will also be vital to gaining a complete understanding of the matter.
On the other hand, former Chief Minister of Khyber Pakhtunkhwa, Ali Amin Gandapur, has defended these auctions, maintaining that higher prices were secured during his tenure compared to previous periods and that all legal requirements were duly met. Their stance, as well as the objections raised regarding the auction process, can only be examined in light of official records, agreements, court orders, and relevant investigations.
