Following a tremendous uproar in the Gilgit-Baltistan legislature about its licensing, the gemstone mining firm Mohsin Industries may finally be shutting down, with several employees, including some of its senior most management being laid off in recent days, according to sources.
“There is a high chance that the company may pack up in the near future,” said one source who wished to remain anonymous.
Mohsin Industries is owned by Wang Zunyu, a Hong Kong national who moved to Gilgit-Baltistan three years ago to start a gemstone mining company. Wang had converted to Islam and married a Gilgiti woman. Wang owns a company known as Bao-Billion Mining Group, of which Mohsin Industries is a Pakistani affiliate.
Wang had hired hundreds of locals for the company and recruited a man named Abid Baig, an influential local resident, as the president. Baig was reported to have been vehement in allowing a company owned by a foreign national to mine gemstones in Gilgit-Baltistan since he said it would provide job opportunities to local people.
In June 2011, Mohsin Industries was granted a gemstone mining licence by the Gilgit-Baltistan government, an action that cause an uproar in the province’s Legislative Assembly since the legislature had already banned the provincial government from issuing new licences. In a resolution passed by the assembly, Gilgit-Baltistan Chief Minister Mehdi Shah was accused of “secretly” and illegally granting the licence to Mohsin Industries.
The chief minister has insisted that the licence was granted by the federal government and that he had nothing to do with it.
Several members of the province’s Metals, Minerals and Gems Association have been opposed to the manner in which Mohsin Industries was granted its licence and have threatened to protest against the government if those mining rights are not withdrawn.
The Gilgit-Baltistan Chief Court is also conducting hearings into a writ petition challenging the mining rights granted to Mohsin Industries.
All these hearings, however, may not be necessary. Sources familiar with the situation say that the company has laid of dozens of employees and even Baig is reported to have left the company after a falling out with Wang. Despite several attempts by The Express Tribune to reach him, Baig did not respond to requests for comment.
The Express Tribune also tried to reach the company’s media office, but learnt that the media section of the firm had been closed.
Meanwhile, sources also say that Wang, who now goes by the name of Mohsin, divorced his Gilgiti wife ‘after they developed some differences.’ This was Wang’s second marriage, the first of which he ended in order to marry the woman in Gilgit.
Published in The Express Tribune, January 5th, 2012.
COMMENTS (4)
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In absence of a strong and autonomous legislature, while the judicial system has been contracted out to a PCO Judge, there is no institution or process to ensure "due diligence" in Gilgit - Baltistan.
Foreign, or even "national" corporations should not be allowed.
This is the right time to enact the "state-subject rule", till resolution of the region's constitutional issue.
I believe it wasn't a mining licence but an exploration licence and not for gemstones, rather for metals. Nothing wrong with giving foreign companies mining rights, but after due diligence. Mohsin Industries, unfortunately, has no mining experience. It is sad that the people in Gilgit will now have rid themselves of a taxpaying employer thus ensuring that more of their own people remain unemployed.
I suggest those who oppose mining by foreign companies research Peru and the amount of DFI being raised yearly.
the people who are involved in issuing the license should be made accountable, and who have get some sort of benefit from the mohsin industries.
Good move, we must stop all these chinese companies to take away precious natural resources from our country. Our Govt have blindly sold everything to Chinese and they are reaping profits. Foolish we...