PESHAWAR – In a bid to tighten control over resource extraction and attract serious investors, the Khyber Pakhtunkhwa (KP) government is set to auction six new gold mining blocks in the Kohat district on August 4. These high-value sites, collectively valued at over Rs25 billion, represent the province’s growing effort to formalise its mining sector and crack down on unregulated activity.
The sites lie along the Indus River belt, a region increasingly recognised for its untapped mineral potential. Each lease will run for ten years, and the auction will take place in Peshawar at 11:00 AM, following an application deadline of July 28.
Breaking Down the Bidding Slate
Each mining block carries a hefty reserve price, starting from Rs500 million. The most valuable parcel—covering areas such as Chorlakki, Qamar, Ghari Pat, and Khushhal Garh Pul—is priced at Rs1 billion.
Here’s how the other blocks stack up:
- Khushhal Garh Rassi Qasba and Tawi Banda: Rs900 million
- Shoroj Shakardara: Rs700 million
- Tawi Banda Khur Darabo Kach: Rs600 million
- Rukwan Shakardara: Rs520 million
- Seen, Shadipur, Chorlakki: Rs500 million
Who Can Bid?
The process isn’t open to just anyone. Only companies registered with the Securities and Exchange Commission of Pakistan (SECP) are eligible. Applicants also need a valid National Tax Number, a minimum bank balance of Rs5 million (as shown in recent statements), and must submit a non-refundable processing fee. Additionally, a call deposit equal to 10% of the selected block’s base price is required to participate.
Why It Matters
This is KP’s second major gold lease initiative. Last year, the province granted its first large-scale mining license valued at nearly Rs5 billion. These auctions come amid a broader crackdown on illegal mining across KP and are part of a deliberate move to professionalise the sector.
Officials from the Mines and Minerals Department have stated that transparency, legal compliance, and environmental stewardship are key principles guiding this initiative. Community welfare will also be a focal point, they say, with operations required to align with existing environmental and social standards.
A Strategic Pivot Toward Resource-Backed Growth
The timing is critical. Pakistan’s mineral reserves, long considered underutilised, are increasingly being positioned as a strategic asset to reduce the country’s economic reliance on external lenders like the IMF. Prime Minister Shehbaz Sharif has also called on foreign investors—particularly from the U.S.—to tap into Pakistan’s resource wealth.
This upcoming auction signals that KP is not just selling mineral rights; it’s aiming to build a modern, sustainable mining ecosystem.