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KP govt orders inquiry into placer gold mining auctions

August 26, 2025
Nowshera district administration launches a crackdown on illegal placer gold mining along the Indus River banks in the Jabi area of Nizampur on October 5, 2024. —Facebook/DCNowshera
Nowshera district administration launches a crackdown on illegal placer gold mining along the Indus River banks in the Jabi area of Nizampur on October 5, 2024. —Facebook/DCNowshera

PESHAWAR: Following revelations of massive irregularities in the auction of placer gold blocks, the Khyber Pakhtunkhwa government has ordered a comprehensive inquiry into the entire process of placer gold mining auction along the Kabul and Indus rivers.

The inquiry committee will investigate the determination of reserve prices of placer gold blocks and operational violations, and submit its report to the provincial government within 15 days. According to official sources, the decision to form the inquiry committee was taken at a cabinet meeting chaired by Chief Minister Ali Amin Gandapur. Briefing the meeting, the Secretary of Minerals said NAB had pointed out serious violations in the auction process for gold exploration, including flawed feasibility studies, irregularities in fixing reserve prices, failure to obtain NOCs, violations of environmental laws, unsafe use of mercury, subletting of leases, and non-submission of income and sales data.

The secretary Minerals proposed that the mining process be suspended immediately and a detailed inquiry be ordered. However, the cabinet, after consultation, decided to initiate an immediate inquiry.

According to a notification issued by the Administration Department, a high-level committee has been constituted under the chairmanship of the CM’s Adviser on Anti-Corruption, Brigadier (R) Musadiq Abbasi, to probe irregularities in the gold exploration auctions. The committee includes the Chairman of the Provincial Inspection Team, Advocate General KP, and a retired officer of the Mines Department, Engineer Fazal Raziq. The committee has been directed to submit its report within 15 days.

The notification states that the committee will examine the entire placer gold process, from feasibility studies to auctions. It has been tasked to investigate not only the irregularities flagged by NAB, but also other related matters, including the role of district administrations and the negligence or complicity of government officials.

Furthermore, a large-scale operation has been launched against illegal mining along the Indus River in the districts of Swabi, Nowshera, and Kohat. Under Section 144, all unauthorised activities have been stopped immediately, while machinery, equipment, and vehicles used in the process are being confiscated. It may be recalled that the NAB had earlier highlighted massive irregularities in placer gold auctions, which it said were causing losses of trillions of rupees to the national exchequer.