- Web Desk
- 2 Hours ago
KP govt leases four gold mines for Rs4 billion to private entity
- Faqeer Hussain Web Desk
- Jan 15, 2025
PESHAWAR: The Khyber Pakhtunkhwa government has initiated steps to legalise gold mining in the Indus River, following the discovery of massive gold reserves within its territorial limits which are said to of double value than those recently discovered by Punjab government in Attock.
The Mines and Minerals Department has initially leased four blocks along the river – from Kohistan to Dera Ismail Khan – to the private sector for 10 years at a total cost of Rs4 billion.
An official privy to the project claimed that while the Punjab government estimates gold reserves worth Rs800 billion in its portion of the Indus River, KP’s reserves could be valued at over Rs1,600 billion.
On Tuesday, the Punjab government confirmed the presence of gold reserves worth Rs800 billion in Attock, with a recent survey verifying deposits at the confluence of the Kabul and Indus rivers.
According former Punjab minister for mines Ibrahim Hassan Murad – who had announced the discovery of the gold deposits in Feb, 2024 – the 2.8 million tolas of gold reserves are spread across a 32-kilometer stretch in Attock.
According to sources, illegal gold mining has been a usual business in the Indus River within the boundaries of Khyber Pakhtunkhwa and Punjab for years, causing severe damage to the river. In response, the KP government started taking steps to prevent it. Meanwhile, the Geological Department at the University of Peshawar conducted a survey to assess the gold deposits in the river.
Officials from the KP Directorate of Mines and Minerals told Hum News English that the survey carried out by Peshawar University confirmed the presence of substantial gold deposits in the Indus River, prompting the government to formally regulate mining operations.
In the first phase, four blocks – A, B, C, and D – spanning from Swabi to Kohat were auctioned to private firms on a 10-year lease. From these block alone, the KP government is expecting to generate Rs4 billion in revenue.
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According to the officials, mining operations have already begun in two of the blocks – C, and D – located between Nowshera and Kohat. Similarly, they added, from Kohistan to DI Khan, wherever the Indus River passes within the boundaries of KP, gold mines would be handed over to private sector on lease, which will generate billions of rupees in revenue for the provincial government annually.
In order to protect the gold reserves in the Indus River and prevent illegal mining, Provincial Advisor Anti-Corruption Brigadier (Retd) Musaddiq Abbasi issued instructions to the administrative and police officers of Nowshera district in a recent meeting.
However, according to local journalists, illegal mining is still taking place in the Indus River at some places.
Local administration acknowledges the challenges, saying that its “really very difficult” to monitor illegal mining in such a vast area with existing means and capability. Nevertheless, the administration claims to have curbed illegal gold mining in many areas after conducting thorough operations.