Islamabad, Aug 25 Pakistan's National Accountability Bureau (NAB) has revealed grave irregularities during gold exploration operations in Khyber Pakhtunkhwa (KP), expressing major concerns over the minimum price fixed for the auction of gold blocks in the province along the Indus and Kabul rivers.
The NAB has stated that due to these irregularities, the province is suffering losses worth trillions, local media reports cited.
Highlighting the provincial government's official documents, NAB revealed that leaseholders are blatantly subletting and charging Pakistani rupees 500,000 to 700,000 per excavator per week. Their weekly earnings are estimated between Rs 750 million and Rs one billion, adding up to trillions, while the provincial government receives only a minimal share.
KP Chief Minister Ali Amin Gandapur told leading Pakistani media outlet Geo News that his government auctioned the placer gold blocks at high prices. He claimed that while the auction price of a single block had earlier been Rs 650 million, his government raised the minimum price to Rs 1.10 billion and sold four blocks for approximately Rs 4.6 billion for 10 years.
For the past 20 years, he asserted that no auction had been conducted that had allowed people to extract gold illegally.
Reports suggest that available documents showed that during a high-level meeting held at NAB headquarters on August 7, and attended by top provincial officials, including Chief Secretary KP and Secretary Minerals, the NAB's probe found that the reserve price of gold blocks had been intentionally miscalculated.
In addition, the geological mapping initiative, started in 2022 for updated mineral resource assessments, was halted in November 2023, specifically regarding placer gold, provoking doubts about intentional concealment.
Prior auctions were also unsuccessful because of inadequate publicity that did not entice international investors, local media reports suggest.
The documents indicate that, according to the auction rules, if an agreement is not completed within 14 days, the proposal must be retracted.
However, local media reports that even with delays extending for months, contracts and allotment letters were still distributed. Mining activities persisted in November 2024, despite a stay order issued by the Peshawar High Court.
The NAB has pointed out serious violations by the leaseholders, including their failure to conduct environmental impact assessments, to obtain No Objection Certificates from the Environmental Protection Agency, install processing plants, follow exploitation schemes, and submit production or sales records.
It has also exposed the dangerous use of mercury and the unlawful hiring of unskilled miners.
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