Mining test samples illegally sent abroad

PAC told firm exported 413 tons minerals under pretext of pilot project

PESHAWAR:

A mining company granted access to mineral samples in Chitral for testing purposes by the Minerals Development Department has allegedly exported the materials abroad for commercial gain. The matter was brought to light during a recent meeting of the Public Accounts Committee (PAC), prompting directives for stricter regulations on sample quantities permitted for testing across Khyber-Pakhtunkhwa.

The PAC meeting, chaired by Idris Khattak, was attended by committee members, officials from the Audit Department, Finance Department, and Law Office. Several audit objections related to the Minerals Development Department and the Information Department were presented during the session.

A key audit objection raised during the meeting revealed that in 2023, a company named Toni Pak had carried out mining under the pretext of testing in Chitral. However, it was later discovered that the minerals were used for commercial purposes. According to the Director Audit, the company exported 413 tons of material abroad. Questions were raised about the department's inaction in response to the unauthorized activity.

Committee member MPA Ikramullah Ghazi noted that the same company had extracted 82,567 tons of minerals over the past two years in Mansehra, of which 7,000 tons were reportedly sold internationally.

Secretary Minerals Mutahir Zaib stated that the company had requested 500 tons of base metal for a pilot project. Although the company deposited Rs10 million, further dues remain pending. Chairman Khattak expressed concern over the department's silence despite active mining operations, calling it "deeply troubling."

He directed the department to establish clear quantity limits for mineral testing in the future. The audit objection was deferred for the time being.

The committee also reviewed an audit objection concerning Rs162.3 million in unpaid taxes by cement factories in Haripur. The Secretary of Mines admitted that it was difficult to determine the exact volume of excavation conducted by the five cement plants in the area, as they do not disclose their extraction data. He added that this issue dates back to 2013–14 and proposed a negotiated resolution.

Chairman Khattak criticized the department for its inaction, stating that directives had been issued three years prior. In response, Secretary Zaib assured the committee that an internal inquiry would be launched to investigate the delay. The Audit Director suggested levying taxes based on the number of cement bags produced rather than by tonnage.

The Chairman ordered that notices be issued to the factories and deferred the audit objection.

Another audit objection involving over Rs20 million worth of illegally mined minerals in Chitral was also discussed. The Mines Secretary informed the committee that six companies had engaged in unauthorized mining and had been fined Rs20 million. However, most companies have taken the matter to court, and only M/S Sambo Sarco has deposited Rs17.868 million so far.