Serious allegations of corruption and irregularities have emerged over gold mining contracts worth Rs 4.93 billion awarded during the Pakistan Tehreek-e-Insaf (PTI) government’s rule in Khyber Pakhtunkhwa.
The National Accountability Bureau (NAB) has raised serious objections to the auction process of placer gold mining blocks along the Indus and Kabul rivers. Questions have also been raised over alleged favouritism towards selected companies and violations of mining rules.
According to an October 2024 government report, four gold mining blocks were auctioned for approximately Rs 4.93 billion. Block A was awarded to Globa Core Private Limited for Rs 1.25 billion, Block B to Majco Private Limited for Rs 1.261 billion, Block C to Himalaya Earth Private Limited for Rs 1.305 billion, and Block D to Shakardara Minerals Private Limited for Rs 1.111 billion.
NAB has questioned why a 2015 geological study was ignored while setting the starting prices of the mining blocks. The prices were allegedly fixed without properly assessing the gold reserves.
The auction process also reportedly violated the Mineral Auction Rules 2022. Allotment letters were allegedly issued despite agreements not being completed within the required 14-day period. Geological mapping that began in February 2022 was also stopped in November 2023.
Further allegations suggest that mining activities continued in November 2024 despite a stay order issued by the Peshawar High Court. Mining operations were also reportedly carried out without environmental approval and required mining plans.
More than 1,500 excavators were allegedly involved in illegal mining activities. Leaseholders reportedly collected between Rs 500,000 and Rs 700,000 per excavator every week.
According to estimates, unauthorised subleasing generated between Rs 750 million and more than Rs 1 billion weekly, raising serious questions about possible financial losses to the provincial government.
NAB has also raised objections over the failure to provide complete records of gold production and sales. The bureau has sought records from the KP Minerals Department regarding the disputed contracts.
The revelations have raised serious questions about the PTI government’s handling of mineral resources, the approval of contracts, alleged favouritism towards selected companies and the failure to enforce mining regulations.
However, former Chief Minister Ali Amin Gandapur has defended the auctions, claiming that his government secured higher prices than previous auctions and followed all legal requirements.
The allegations have placed the PTI government’s management of billions of rupees worth of gold mining contracts under scrutiny, with questions remaining over accountability, transparency and the role of the officials involved.
