Press conference: All that glitters in a few hands

Locals demand share in the mineral industry, being controlled by vested interests.

GILGIT:

Influential groups dealing in minerals have blocked access of local people to the precious gemstones business in Gilgit-Baltistan (G-B). This was stated by the G-B Metals, Minerals and Gem Association (G-BMMGA), in a press conference at a local hotel here on Sunday.

They said the monopoly was contributing to poverty and joblessness in the area.

“These groups have gotten hold of minerals of G-B spread over 40,000 sq km of land through mining leases and exploration licenses,” said Advocate Shahbaz Khan, chairperson of the association, while talking to media. Former AIG Hashmatullah, who is the vice president of the association, and Amanullah, a retired secretary, were also present in the press conference.

He added that instead of setting up factories in G-B, the groups blocked access of other companies in an attempt to establish their monopoly in the market.

“Following suit, some foreigners also stepped in and influenced even the chief minister to have their lease application approved,” he said without naming any companies. The region is home to about 500 varieties of gemstones including amethysts, aquamarines, spinels, corundums, emeralds, garnets, peridots, rubies, pyrites, moonstone, fluorite, pargasite, quartz, and tourmalines, among others.

According to a recent survey conducted by Pakistan Mineral Development Corporation for gold and base metals, around 11 prospect areas confirmed gold value ranging from 0.10 to 24 Parts Per Million (PPM) in hard rock (5 PPM gold is considered feasible).

The chairperson revealed that applications submitted by over 200 local companies for the past two years for mining leases and exploration licenses have been pending, despite the fact that under NA Mining Concession Rules 2003, the government is bound to decide the cases within six months.

“At least 10,000 families have suffered as a result of this delay,” he said, adding that the ban on transportation of precious stones from G-B to other parts of the country is adding fuel to fire with respect to local people’s rights. He demanded issuance of licenses to local individuals and companies immediately.

Giving their recommendations, the G-BMMGA office bearers asked the government to restrict the foreign companies from doing joint ventures with local companies. They demanded that all the companies violating rules of business should be blacklisted. They added that the foreign companies engaged in the business for 30 years have contributed nothing to the region’s revenue.

The G-BMMGA demanded setting up of Minerals Directorate in Gilgit for the promotion of the gemstones business. “A testing laboratory and a minerals institute should also be established in the G-B so that proper training in gems cutting, polishing and marketing is possible,” said Hashmatullah.

The G-BMMGA officials said that all the banks should provide loans to local businessmen on soft terms. They announced to hold a Minerals Investment Conference in China next year for promotion of the G-B minerals in the Chinese and the international market.

Published in The Express Tribune, June 6^th, 2011.