ANP MPA Alleges Billions in Unpaid Royalties from Waziristan Copper Mining

PESHAWAR:Awami National Party (ANP) member of the Khyber Pakhtunkhwa Assembly and member of the Standing Committee on Mines and Minerals, Nisar Baz Khan, has raised questions over the provincial Mines and Minerals Department’s records, copper mining in Waziristan, royalty payments and what he described as alleged propaganda against small leaseholders.

In a statement on social media platform X, Baz Khan said the committee had been reviewing the Mines and Minerals Department’s records for the past two years. He claimed that the department had issued four large-scale mining licences, including one held by the Frontier Works Organisation (FWO), which is engaged in copper mining in Waziristan.

According to him, the licence was initially held by the former Federally Administered Tribal Areas Disaster Management Authority (FDMA) in 2016 and was subsequently obtained by FWO through a joint venture. He said that following the enactment of the Khyber Pakhtunkhwa Mines and Minerals Act, 2017, this was the only operational large-scale licence.

Baz Khan stated that the licence covered 30 square kilometres, equivalent to approximately 7,410 acres or 37 ordinary mining leases. He contrasted this with the 50 to 500 acres generally allocated to local people.

He claimed that 987,000 tonnes of copper had been extracted from the site between 2016 and 2024, adding that figures for 2025 and 2026 were not included in the available record.

### Questions over Copper Sales and Royalty Payments

The ANP lawmaker alleged that FWO had sold and exported one million tonnes of copper through open bidding. He said that after processing, copper products containing 25 to 30 per cent copper were sold in the market.

Citing international market prices, he put the price of copper material containing 25 per cent copper at $9,500 per tonne and that containing 30 per cent copper at $11,500 per tonne. Referring to a rate of Rs700,000 per tonne reportedly mentioned by journalist Hamid Mir, he estimated the total value of the extracted copper at approximately Rs6.9 trillion.

Baz Khan argued that under the Khyber Pakhtunkhwa Mines and Minerals Act, 2017, a five per cent royalty on that amount would come to approximately Rs34.5 billion. However, he claimed that departmental records showed payments of only Rs169 million to the Mines and Minerals Department.

He further alleged that when committee members sought an explanation from the secretary and director general of mines and minerals, they failed to provide a satisfactory response.

“These matters are part of the committee’s records and documents,” he said, while expressing concern that the records could be altered during the current period of governor’s rule and emergency.

The figures and allegations have not been independently verified.

### Calls for Transparent Audit

Discussing accountability, Baz Khan said more than 4,000 small leaseholders across the province generated a combined annual income of approximately Rs14 billion. He contrasted this figure with the alleged royalty liability of around Rs33 billion from the Waziristan copper lease, claiming that only Rs169 million had been paid.

He called for a transparent audit and accountability process, arguing that the copper mining project should be examined before action was taken against small leaseholders.

Baz Khan said he continued to oppose what he described as poor governance, favouritism and corruption under the Pakistan Tehreek-e-Insaf (PTI), but stressed that the facts should be presented accurately to protect the integrity of official records.

He alleged that elements of Punjab’s civil-military elite were attempting to cast doubt on the licences of Khyber Pakhtunkhwa’s small leaseholders in order to cancel them and award large-scale licences to corporate entities, enabling them to gain control over the province’s mineral resources.

### Pending Licences and Online Application System

Explaining the process for issuing small mining licences, Baz Khan said a transparent online portal had been developed in 2017 after a security institution provided training to the Mines and Minerals Department in Risalpur. The system enabled citizens to submit applications from their homes.

He said the Mine Owners Association reported in 2024 that around 7,000 applications remained pending despite the completion of required documentation and payment of fees. The matter subsequently drew the attention of the National Accountability Bureau (NAB), he added.

According to Baz Khan, a joint prevention committee reviewed the issue in October 2024 and called for the pending applications to be resolved promptly. He said former director Junaid Khan subsequently issued licences to applicants who had fulfilled the legal requirements.

He maintained that the more than 4,000 leaseholders included individuals affiliated with different political parties, retired military officers and citizens from across Pakistan.

### ANP Opposes Collective Action against Leaseholders

Baz Khan said any irregularities in the issuance of mining licences should be investigated, but warned against linking the entire department and thousands of leaseholders to a single political party.

He described it as unjust to deprive people of their livelihoods without evidence of wrongdoing.

The ANP lawmaker also recalled that in 2025, when the provincial government led by Ali Amin Gandapur attempted to amend the 2017 Mines and Minerals Act after approving a draft sent by the Special Investment Facilitation Council (SIFC), ANP leaders organised jirgas, seminars and protests that, he claimed, forced the withdrawal of the proposed legislation.

He concluded that accountability must be based on evidence, law and facts, stressing that his party would not allow the province’s mineral resources to be exploited at the expense of its people.