KP governor cancels all gold mining leases, vows crackdown on illegal networks

Khyber Pakhtunkhwa Governor Faisal Karim Kundi on Saturday announced the cancellation of all gold-mining leases in the province, ordering leaseholders and contractors to remove their heavy machinery from mining sites within a week.

Addressing a press conference in Peshawar, Kundi said all gold mining activities have been suspended with immediate effect as authorities moved to dismantle illegal mining networks and ensure transparency in the province’s mineral sector.

Kundi said machinery used for illegal mining included more than 8,000 tractors and other vehicles, along with 1,600 dumpers.

“Leaseholders, contractors and machinery owners must withdraw their equipment within seven days. The machinery left behind would be seized and those responsible would face legal action,” he warned.

The governor alleged that 80% of the proceeds from illegal mining in Khyber Pakhtunkhwa were being transferred to Afghanistan.

He alleged that commanders of Fitna al-Khawarij, also known as the outlawed Tehreek-e-Taliban Pakistan (TTP), were extorting up to Rs800,000 from local residents and Rs4 million from people coming from outside the area.

“Illegal mining networks have developed links with militant groups and proceeds from the unlawful activity are being used to finance those involved in attacks against security personnel,” the governor alleged.

He said there would be zero tolerance for anyone facilitating such operations, including politicians and government officials.

He also announced an investigation into the alleged involvement of political figures in illegal mining networks, claiming that 12 individuals associated with different political parties have been identified in reports received by the authorities.

Kundi governor maintained that no political or institutional affiliation would protect anyone found involved in unlawful activities.

Judicial commission to probe Kohat attack

The announcement comes after a deadly attack on police personnel in Kohat during an operation against illegal gold mining.

Kundi stated that Fitna al-Khawarij attacked police personnel during the operation, martyring 10 officers, including a deputy superintendent of police (DSP). The governor vowed exemplary action against those responsible for the killings, as well as their facilitators.

The attack on a police party left 10 personnel, including a DSP, martyred and 18 attackers dead, according to Khyber Pakhtunkhwa Police. — SCREENGRAB/KP POLICE

According to KP Police, the attack took place in the Darbokach area, within the jurisdiction of Gumbat police station, as a police party returned after completing an operation against illegal gold mining.

Police said 18 terrorists were killed in an exchange of fire, while 10 personnel embraced martyrdom.

The incident took place just a day after the Kohat district administration imposed a 60-day ban on parking excavators in designated placer gold mining areas and adjoining locations. It also prohibited the sale and supply of petroleum products in open containers for use in illegal mining.

In his press conference today, Kundi announced that a judicial commission headed by a retired high court judge would be established during the coming working week to investigate the attack, identify those involved and examine the wider network behind illegal mining.

He said the inquiry would also look into the alleged involvement of individuals providing protection to unlawful mining operations.

Emergency measures in KP

Kundi also defended the emergency and governor’s rule imposed in KP, saying a month had passed since the measures were introduced and that restoring peace and prosperity remained the administration’s foremost priority.

President Asif Ali Zardari proclaimed emergency in the province on October 11, on Prime Minister Shehbaz Sharif’s advice under Articles 232 and 234 of the Constitution.

The move ended the provincial government’s authority, transferring executive powers to Governor Kundi, while an 11-member advisory council was constituted to assist him in running provincial affairs.

Parliament subsequently endorsed the emergency measures through a joint sitting on October 15, with legislative powers of the provincial assembly transferred to Parliament.

The governor said police and security forces were working together to improve law and order, adding that the province had made an uncompromising commitment to the fight against terrorism.

New framework planned for mining sector

The governor said a task force would prepare a comprehensive framework for the mining sector within two to three weeks.

A truck moves past cranes during a media tour of the Karachi Port, Pakistan, May 9, 2025. — REUTERS

The proposed system would cover licensing, regulations, security arrangements and the participation of local communities in mining activities.

He also warned government officials, police officers, bureaucrats and magistrates against facilitating illegal mining, saying action would be taken against anyone found abusing their authority.

Kundi questioned why some magistrates had imposed fines of only Rs25,000 to Rs30,000, despite the statutory minimum penalty being Rs500,000 and the maximum reaching Rs2 million.

He said provincial mineral resources belonged to the people and accused successive authorities of allowing the province’s wealth to be exploited over the past 13 years.

Legal mining, he added, could strengthen the provincial economy if conducted transparently and in accordance with the law.

Unlocking mineral potential

Meanwhile Pakistan has steped up efforts to attract foreign investment and transform its mineral resources into a driver of economic growth.

The Pakistan Minerals Investment Forum 2026, held in Islamabad on November 12 and 13, brought together government representatives and international mining executives to explore investment opportunities.

Addressing the forum, PM Shehbaz urged international investors to establish processing and manufacturing facilities in Pakistan rather than exporting minerals in their raw form.

He outlined his vision of mining, processing and manufacturing resources domestically before exporting finished products, stressing the need for refineries, smelters and other value-added industries.

The premier also assured investors of government support, transparent policies and security, saying local communities should benefit through employment, infrastructure and development opportunities.

Chief of Defence Forces (CDF) and Chief of Army Staff (COAS) Field Marshal Asim Munir, addressing the forum, pledged that security forces would take all necessary measures to protect mines, miners, investors and associated projects.

He said Pakistan aimed to become a competitive destination for long-term mineral investment, stressing that the country needed to develop the entire value chain, from extraction to refining and manufacturing.

Meanwhile, Ivanhoe Mines Executive Chairman Robert Friedland said Pakistan’s geological potential and human resources could make it a global leader in mineral development, comparing its copper and gold prospects with major discoveries in Mongolia and the Democratic Republic of Congo.