From illegal mining to Mining Politics in Khyber Pakhtunkhwa

From illegal mining to Mining Politics in Khyber Pakhtunkhwa

DND News

ISLAMABAD: Pakistan had, in the past, been a country where resources were exploited with little accountability, particularly in Khyber Pakhtunkhwa (KP), where mining became one of the most ruined sectors. Illegal mining using dynamites, destroying 80 per cent of precious stones for only 20 per cent recovery, had remained in the news since the 1980s.

The majority of this illegal and unchecked mining had been carried out by Afghans under political patronage, while one of the most important political parties, Jamiat Ulema-e-Islam (JUI), had led this theft of national resources since long.

Several journalists who had raised their voices against this mafia in the past had either been silenced through force or forced to leave their jobs to secure the lives of their families as this had been business of multimillion dollars. Since the Pakistan Tehreek-e-Insaf (PTI) emerged as the ruling elite in KP, it became a partner in crime with other political parties, including JUI. Politicians from both parties shared natural resources, including timber and mining products, among themselves, even when PTI used to call the JUI chief, Fazlur Rehman, “Maulana Diesel.”

They had two faces: one political and the other financial. On the financial front, they had been jointly abusing national and natural resources. Now, when the government of Pakistan is trying to control the exploitation of natural and national resources, both parties are openly joining hands, particularly over the mining sector in KP.

Tehreek-e-Insaf and Fazlur Rehman have suddenly become very concerned about the mines and minerals of Khyber Pakhtunkhwa. When contacted, officials of mines and mineral exploration entities, they were of the view that upper-soil minerals are mostly stolen by political elites in last 50 years and now government is trying to work deep-soil exploration that needs scientific and highly professional expertise that were not available with unskilled but callous groups who ruined the country’s mineral resources. They said that it is easy for political elites to spread falsehoods without understanding the facts regarding minerals or the established procedures. The deep-soil extraction of minerals procedures governing mineral development make the distinction clear. They are of the view that politicians such as Fazlur Rehman know exploiting and abusing natural resources, particularly mines and mineral would not be possible for them under established writ of the government that has decided to streamline mine and mineral as an industry where national resources would be used for national demands not for making certain politicians billionaires therefore they have launched a propaganda campaign against the government and linking the imposition of Emergency with mine and mineral sector while everybody know that this constitutional step had been taken to fight back terrorism in the region and to build a workable governing structure over collapsed administrative system in KP.

The presence of minerals and their production on a commercial scale are two entirely different things. Identifying mineral potential in an area does not mean that proven, extractable and economically profitable reserves exist there.

Large-scale mineral projects require years, or even decades, for geological surveys, sample testing, drilling and determining the quantity and quality of reserves. An initial estimate is not a substitute for confirmed mineral reserves.

A feasibility study first evaluates the economic viability of mineral reserves, mining costs, global market prices, and requirements for energy, water, infrastructure, machinery and investment. A project is considered viable only when these factors are economically acceptable.

In large-scale projects, exploration, pre-feasibility and full feasibility are distinct and separate stages. This process can take several years, depending on the complexity of the project.

Under the mineral laws of Khyber Pakhtunkhwa, large-scale mining requires relevant leases, technical reports, feasibility studies, mine development and operational plans, environmental assessments, and details regarding finance and infrastructure.

The Khyber Pakhtunkhwa Mineral Rules, 2017, stipulate a two-month timeframe for the approval of a development scheme following the submission of an application. This refers specifically to the approval period for the scheme itself, not the duration of the entire project, from the initial survey to production.

Mineral licences, exploration permits and mining leases are distinct legal stages. The mere presence of minerals, the identification of an area or the completion of an initial survey does not, in itself, grant a company the immediate right to mine.

Large-scale mineral projects may require advanced foreign drilling equipment, heavy machinery, crushing and processing plants, as well as power and water infrastructure. Procuring, importing and installing this equipment, followed by trial production, requires additional time and capital.

Large-scale projects often involve international suppliers, financial institutions and foreign investors. However, the procurement of machinery or the influx of foreign investment does not, in itself, constitute proof of the transfer of mineral ownership or provincial rights.

According to the World Bank, the global average duration from the discovery of a new mine to the commencement of production can exceed 17 years. This is a general global estimate. The Reko Diq project in Pakistan serves as a prominent example of this gradual process. The feasibility update for the project was completed in 2025, with production from the first phase expected to commence by the end of 2028. This example illustrates that there is often a gap of several years between the discovery of significant mineral deposits and the actual commencement of production.

The transparency of a mineral project is not determined by political allegations; rather, it is assessed through verifiable records concerning relevant licences, leases, approvals, contracts, investments, production, royalties and oversight.

In the mineral sector of Khyber Pakhtunkhwa, the provincial government and the relevant mineral authorities play a fundamental role. The scope of involvement for federal entities, private investors or foreign companies is defined by the applicable laws, the specific project and the relevant agreements. The roles of these various entities differ from one project to another.

It is essential to distinguish between estimates of mineral deposits in Khyber Pakhtunkhwa, their potential economic value, proven reserves, approved projects and actual production. Presenting these distinct figures as if they represent the same thing is misleading.

Pakistan’s mineral resources are not confined solely to Khyber Pakhtunkhwa. Significant mineral potential also exists in Balochistan, Punjab, Sindh and other regions. The development of mineral resources at the national level and the protection of the legal and financial rights of the provinces are not mutually exclusive.

The core question is: over the past thirteen years, which specific mines or leases were granted to which parties, under what legal authority, and what was the approval process, and so on?

Given the timelines for mineral projects, the requirements for legal approvals and the necessity for specialised machinery, it is accurate to state that large-scale mining is a gradual and highly technical process.

Therefore, the criteria for evaluating allegations regarding the “seizure” of mineral resources are clear: one must examine specific mines, the relevant leases, the legal authority involved, any changes in ownership or contractual terms, and verifiable official records.

In the absence of such evidence, merely pointing to mineral potential or the imposition of an emergency as proof of the “seizure” of mines is both ignorant and absurd. Such claims serve no purpose other than to fuel lies and propaganda on social media, a tactic currently being employed by Tehreek-e-Insaf and Fazlur Rehman.

 

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