Pakistan

Billions in Waziristan Copper Royalty Allegedly Unpaid, ANP MPA Calls for Transparent Audit

PESHAWAR: Awami National Party (ANP) MPA and member of the Khyber Pakhtunkhwa Assembly’s Standing Committee on Mines and Minerals, Nisar Baz Khan, has alleged major discrepancies in royalty payments from copper mining in Waziristan, claiming that against an estimated royalty liability of Rs34.5 billion, only Rs16.9 crore was paid to the provincial Mines and Minerals Department.

In a statement posted on social media platform X, Nisar Baz Khan raised questions about the department’s records, the operation of a large-scale copper mining licence in Waziristan, royalty payments and what he described as a campaign against small mining leaseholders.

He said the committee had been examining the Mines and Minerals Department’s records for the past two years. According to him, the department had issued four large-scale licences, one of which was held by the Frontier Works Organisation (FWO) for copper mining in Waziristan.

Nisar Baz Khan stated that the licence was initially held by the erstwhile Federally Administered Tribal Areas Disaster Management Authority (FDMA) in 2016 and was subsequently obtained by FWO through a joint venture. Following the enactment of the Khyber Pakhtunkhwa Mines and Minerals Act, 2017, he said, this was the only operational large-scale licence.

According to the lawmaker, the licence covers approximately 30 square kilometres, equivalent to 7,410 acres or around 37 ordinary mining leases. He contrasted this with the 50 to 500 acres generally allocated to local people.

He claimed that approximately 987,000 tonnes of copper had been extracted from the site between 2016 and 2024, excluding production records for 2025 and 2026.

Questions Raised Over Copper Sales and Royalty Payments

Nisar Baz Khan further alleged that FWO had sold and exported one million tonnes of copper through open bidding. He said the material was processed to produce copper concentrations ranging from 25 to 30 per cent for sale in the market.

Citing international market prices, he stated that copper concentrate with a 25 per cent grade was valued at around $9,500 per tonne, while material with a 30 per cent grade was priced at approximately $11,500 per tonne.

Referring to a rate of Rs700,000 per tonne reportedly mentioned by journalist Hamid Mir, the MPA estimated the total value of the extracted copper at approximately Rs6.9 trillion.

He argued that, under the Khyber Pakhtunkhwa Mines and Minerals Act, 2017, a five per cent royalty on that estimated value would amount to around Rs34.5 billion. However, he claimed that departmental records showed payments of only Rs16.9 crore.

The lawmaker said members of the standing committee had sought an explanation from the secretary and director general of the Mines and Minerals Department, but, according to him, they did not provide a satisfactory account of the figures.

He added that the matter was part of the committee’s records and documents, expressing concern about the possibility of changes to departmental records during the current period of governor’s rule and emergency in the province.

The allegations and calculations cited by the MPA could not be independently verified from the information provided.

ANP MPA Demands Accountability and Audit

Highlighting what he described as unequal treatment of mining leaseholders, Nisar Baz Khan said more than 4,000 small leaseholders across the province generated combined annual revenue of approximately Rs14 billion.

He argued that the alleged royalty liability from the single Waziristan copper lease warranted immediate scrutiny, calling for a transparent audit and accountability.

The ANP lawmaker said he continued to oppose what he described as poor governance, favouritism and corruption under the Pakistan Tehreek-e-Insaf (PTI) government. However, he maintained that factual scrutiny of departmental records was necessary to prevent legitimate small leaseholders from losing their livelihoods.

He alleged that efforts were being made to cast doubt on the licences of small mining operators in Khyber Pakhtunkhwa, potentially paving the way for large-scale licences and greater control over provincial mineral resources.

Thousands of Mining Applications Had Remained Pending

Discussing the issuance of small mining licences, Nisar Baz Khan said a transparent online portal system had been developed after security personnel provided training to the Mines and Minerals Department in Risalpur in 2017. The system enabled citizens to submit applications remotely.

He said the Mine Owners Association reported in 2024 that around 7,000 applications had remained pending despite the payment of fees and completion of documentation. According to him, the National Accountability Bureau (NAB) took notice of the issue.

He added that a joint prevention committee reviewed the matter in October 2024 and called for the prompt resolution of pending applications. Subsequently, former director Junaid Khan issued licences to applicants who had fulfilled the legal requirements, he claimed.

According to Nisar Baz Khan, the more than 4,000 leaseholders include people affiliated with different political parties, retired military officers and citizens from across Pakistan.


He stressed that any irregularities in the issuance of licences should be investigated, but argued that the entire department and thousands of leaseholders should not be penalised or deprived of their livelihoods by associating them with a particular political party.

Opposition to Proposed Changes in Minerals Law

The ANP MPA also recalled that in 2025, the provincial government led by Ali Amin Gandapur had attempted to amend the Mines and Minerals Act, 2017, through a draft reportedly sent by the Special Investment Facilitation Council (SIFC).

He said the ANP leadership had opposed the proposed changes through jirgas, seminars and protests, eventually forcing the withdrawal of the bill.

Nisar Baz Khan maintained that accountability must be based on evidence, law and facts. He said the province’s mineral resources should be protected and that any attempt to deprive local people of their legitimate economic opportunities must be opposed.

The allegations concerning copper extraction, royalty payments and the administration of mining licences call for examination of the relevant departmental records and an independent audit. No official response from FWO or the provincial Mines and Minerals Department was included in the statement provided.

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