NAB raises alarm over gold mining losses in Khyber Pakhtunkhwa

According to Geo News, NAB maintains that leaseholders have been openly subletting gold blocks and charging between Rs 500,000 and Rs 700,000 per excavator per week. This system allegedly generates Rs750 million to Rs 1.05 billion weekly, while the provincial exchequer receives only a token amount.

Citing official documents, Geo News stated that NAB's inquiry found the reserve price of gold blocks was deliberately miscalculated, ignoring a 2015 geological study that had estimated reserves ranging from 0.21 to 44.15 grams per ton. Furthermore, a geological mapping project initiated in 2022 was reportedly halted in late 2023 specifically in the case of placer gold, raising suspicions of concealment.

KP Chief Minister Ali Amin Gandapur defended his government's actions. He told Geo News that his administration had auctioned the blocks at record prices, setting the minimum price at Rs1.10 billion per block, compared to a previous high of Rs 650 million. Four blocks were eventually sold for around Rs 4.6 billion for a 10-year period. The CM insisted that all legal requirements were met and even informed NAB officials attended the auction process.

Despite this defence, NAB has highlighted several violations, Geo News noted. These include leaseholders failing to conduct environmental impact assessments, not obtaining mandatory NOCs from the Environmental Protection Agency, avoiding installation of processing plants, and not submitting production or sales records. The watchdog also flagged the hazardous use of mercury and the employment of unskilled labourers.

Geo News further reported that more than 1,500 excavators are allegedly operating illegally in the area, even continuing operations despite a Peshawar High Court stay order. NAB has stressed that while private operators have earned trillions through such practices, the provincial government has gained little in return. (ANI)