After extensive visits, and interaction with local miners, landowners, and mining officials, the study finds that the mining potential in Chitral is mind-blowing. Starting from Arandu Valley right up to Wakhan Corridor on the left bank of river Chitral and from Darosh Valley straight up to Boni, Mastuj, and Shandur on the right bank of river Chitral, the area is full of Lead, Iron, Antimony, Copper, Lithium, Marble, Granite, Nephrite, Quartz and Emeralds. The government has allocated large RL and EL licenses to companies working on base metals and precious groups. The representatives of the local mining association said, “We feel insecure to register our discoveries because most of the area comes under large EL licenses. To apply for a Prospecting License from the Mines and Mineral Department, we need to get NOC from those companies. We are deprived and feel insecure to submit our discoveries to a multinational before establishing a legal right for fear of manipulation. Our politicians should stand for our right against these strong multinationals.”
According to the regional representative of Central Exchange, one of the companies having 100 sq km of exploration license starting from Arandu Valley to Shishi Valley noted, “we have completed our surveys and our consultant is preparing a final document to apply for mining lease. We have identified potential minerals.”
He added, “Unlike local explorers and guess applications, we invested a huge amount in exploration since 2005, faced departmental hurdles, and conducted proper samplings and surveys in accordance with international standards. We anticipate our mining activities this year following the grant of Mining Lease in the subject area which will add a considerable amount of tax to the national treasury and generate employment opportunities for the locals.”
Chitral is a jewel of opportunity to build future socio-economic uplift models using sectoral preferences in the mining and tourism sectors.
There are hundreds of small-scale prospecting license applications pending before the Mines and Mineral Department KPK. “Most of the applications are based on local estimates,” said an official from the mining department. “We have a rented building, no technical support, six clerks, and 14 field staff members to inspect and regulate two districts. We do not have the logistics to conduct exploration operations. We need experts and tools to conduct SP Survey, Magnetic Survey and Resistivity Survey in the potential areas,” he responded to the question of departmental inability to develop the sector. “Scientific exploration is an expensive affair for us, we need investment,” said a young entrepreneur enthusiastic to start his career in the mining sector. “Most of the applications are from those manipulators sitting in Peshawar and Islamabad to grab areas without proper exploration by misusing the new Mining Cathedral System. The mafia has access to the departmental GIS maps. I know a person having dozens of applications on different names,” he complained.
The study proposes four steps to increase the role of the mining sector in the socio-economic development of Chitral and also its productivity in terms of revenue to the national exchequer.
Firstly, upgrading the efficiency of mining officials by providing them facilities and ensuring internal work discipline. Exploration logistics are required for the mining field staff including tools like magnetometer, resistivity meter and SP meter. They need more surveyors, inspectors and exploration geologists. Although the Mining Cathedral System is a good step toward e-governance, the mineral identification and sample test reports should be authenticated before confirming an application for the Prospecting License.
Secondly, explorers are mostly nomads and local inhabitants like in Kaghan, Swat and GB. They need scientific tools, funding, and a research lab inside Chitral to consolidate their exploration ventures. These facilities can be incorporated in Chitral Marble City designed by the government of KPK but not developed yet. Training workshops for the locals on how to do surveys, collect samples and test them will develop their skills to proceed on the path of scientific exploration.
Thirdly, business incubation and outreach facility are required to connect the mine explorers and leaseholders with relevant manufacturers from the corporate sector using those minerals as raw materials. Fourthly, regulating high-tech companies interested to invest in the mining sector to adopt an inclusive approach towards the local inhabitants in terms of royalty ad employment along with facilitating these companies in their operations by decreasing departmental frictions.
In the meantime, Chitral’s two districts are undergoing their first land settlement after annexation in 1969. As a consequence of the 1975 notification, the settlement process started in 2001 and is near completion. It is the time for the settlement staff to comprehend future complications while demarcating and recording private properties, state lands, pastures, river belts and wastelands. It is observed in the settled districts that non-consolidated revenue record is a primary source of civil litigation between private parties and between the government and the public, causing delays in the execution of national projects where the Land Acquisition Act were applied.
Chitral is a jewel of opportunity to build future socio-economic uplift models using sectoral preferences in the mining and tourism sectors. Overall, the study was resourceful and conclusive. A policy paper will be submitted to the Prime Minister’s Office, Board of Investment, CPEC-ICPD, to transform into a policy framework after needful consultations. The proposed model can be applied to other parts of the country as well. Minerals and Tourism are attractive FDI destinations for Pakistan provided the capacity of local enterprises and government institutions will be at par with international standards to host B2B joint ventures under a Liberal Investment Regime.
The writer is an academic, columnist and public policy researcher.