Alleged placer gold plunder sparks calls for probe in K-P

A major scandal involving the alleged "plunder, illegal extraction, and cross-border smuggling" of placer gold along the Indus and Kabul rivers has engulfed Khyber-Pakhtunkhwa (KP), raising questions over the regulation and protection of the province's mineral resources.

According to a first information report (FIR), hundreds of heavy excavators were being used for unauthorised extraction of gold along stretches of the Indus and Kabul rivers, particularly in Nowshera, Swabi and Kohat districts.

The FIR alleged that more than 1,500 heavy excavators were operating along the riverbanks, with each machine allegedly generating between Rs500,000 and Rs700,000 a week through the illegal activity. Based on these figures, the FIR put the estimated proceeds from the operations at around Rs750 million per week.

It further alleged that the gold extracted through these operations was untaxed and was subsequently channelled through international smuggling networks into neighbouring countries.

The FIR also raised questions about the role of law-enforcement agencies, district administrations and officials responsible for regulating mining activities, alleging that the operations had continued despite restrictions on placer gold extraction.

The allegations came against the backdrop of controversy surrounding the auction of five major placer gold blocks in the province around 18 months ago.

According to the FIR, serious irregularities were reported in the auction process, with allegations that the blocks were offered at prices that did not reflect the actual value of the gold deposits.