The National Accountability Bureau (NAB), the federal anti-graft agency, is scrutinising KP mining contracts over alleged irregularities worth billions of rupees. The contracts were awarded in Khyber Pakhtunkhwa (KP) during the tenure of the Pakistan Tehreek-e-Insaf (PTI) government and cover gold mining along the Indus and Kabul rivers. NAB has asked the KP Minerals Department for records of the disputed contracts as part of its review. These are allegations under examination, not settled conclusions.
What an official report from October 2024 shows
An official report issued in October 2024 says four placer gold blocks were auctioned for a combined amount of about Rs4.93 billion. Placer gold is found in river sediment rather than in rock, and Block A is described as lying on the Indus River, while the wider mining area covers the Indus and Kabul rivers. The awards went to Globa Core Private Limited for Block A at Rs1.25 billion, Majco Private Limited for Block B at Rs1.261 billion, Himalaya Earth Private Limited for Block C at Rs1.305 billion, and Shakardara Minerals Private Limited for Block D at Rs1.111 billion. The contracts have drawn scrutiny over allegations that specific bidders were favoured and that mandatory legal and regulatory requirements were not followed.
Auction rules, approvals and excavators
NAB's concerns cover how the blocks were priced and approved. The alleged problems include base prices set without an accurate assessment of gold reserves, and an alleged disregard of a 2015 geological study. Questions have also been raised about alleged violations of the Mineral Auction Rules 2022, the rules that govern how mining blocks are auctioned. Allotment letters were reportedly issued even though contracts were allegedly not finalised within the prescribed 14-day period.
Mining reportedly continued in November 2024, despite a stay order issued by the Peshawar High Court, and some operations were allegedly carried out without environmental approvals or required mining plans. The findings also 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 a week, and estimates suggest unauthorised subleasing may have generated between Rs7.5 billion and more than Rs10 billion weekly. Concerns have also been raised about the failure to provide complete records of gold production and sales.
The questions also extend to the officials who approved and supervised the KP mining contracts and ensured compliance during the PTI government's tenure. NAB's review is at the stage of seeking records, and how it will end has not been announced.
Timeline: what has happened so far
- 2015: A geological study exists, which the allegations say was disregarded when base prices were set.
- February 2022: Geological mapping in the area begins.
- November 2023: Geological mapping is reportedly halted.
- October 2024: An official report records four placer gold blocks auctioned for about Rs4.93 billion.
- November 2024: Mining reportedly continues despite a Peshawar High Court stay order.
- Date not specified: NAB seeks records of the disputed contracts from the KP Minerals Department.
Aasan alfaaz mein
Khyber Pakhtunkhwa mein sone ki kaan kani ke theko mein be-zabtiyon ke shubhaat par jaanch ho rahi hai. National Accountability Bureau ne KP Minerals Department se mutaliqa records talab kiye hain. Ek official report ke mutabiq chaar blocks ki kul bolee Rs4.93 billion thi. Aam shehri ke liye iska matlab hai ke sarkari wasail ki qeemat aur qawaaneen ki nigrani par sawal utthe hain.
