PESHAWAR: Serious irregularities worth billions of rupees have allegedly been found in gold mining contracts awarded in Khyber Pakhtunkhwa during the Pakistan Tehreek-e-Insaf (PTI) government, with the National Accountability Bureau (NAB) raising concerns over auction procedures, contract awards and mining activities along the Indus and Kabul rivers.
According to an official report issued in October 2024, four placer gold mining blocks were auctioned for a combined amount of approximately Rs4.93 billion. The contracts have come under scrutiny over allegations that specific bidders were favoured and mandatory legal and regulatory requirements were not followed.
The Indus River’s Block A was awarded to Globa Core Private Limited for Rs1.25 billion, Block B to Majco Private Limited for Rs1.261 billion, Block C to Himalaya Earth Private Limited for Rs1.305 billion, and Block D to Shakardara Minerals Private Limited for Rs1.111 billion, the report stated.
NAB has sought records of the disputed contracts from the KP Minerals Department as part of its scrutiny of the alleged irregularities.
Among the concerns raised are the determination of base prices without an accurate assessment of gold reserves and the alleged disregard of a 2015 geological study. Questions have also been raised over alleged violations of the Mineral Auction Rules 2022.
The investigation has also examined the suspension of geological mapping, which began in February 2022 but was reportedly halted in November 2023. Questions have further emerged over the issuance of allotment letters despite contracts allegedly not being finalised within the prescribed 14-day period.
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Mining activities reportedly continued in November 2024 despite a stay order issued by the Peshawar High Court. NAB has also raised concerns over mining operations allegedly conducted without environmental approvals and the required mining plans.
The findings further point to the alleged unauthorised use of more than 1,500 excavators in the affected areas. Leaseholders were reportedly charging excavator operators between Rs500,000 and Rs700,000 per week, while estimates suggest that unauthorised subleasing may have generated between Rs7.5 billion and more than Rs10 billion weekly.
Concerns have also been raised over the failure to provide complete records of gold production and sales from the mining operations.
The alleged irregularities have prompted questions about the roles of the officials responsible for approving and supervising the contracts and ensuring compliance with applicable rules during the PTI government’s tenure.