ISLAMABAD: Workers’ representatives of the state-owned Pakistan Mineral Development Corporation have warned that the cancellation of PMDC’s Warcha rock salt mining lease could jeopardise a proposed $200 million foreign investment, put thousands of jobs at risk and weaken investor confidence in Pakistan’s mineral sector.
Speaking at a news conference, All Pakistan CBA Unions of PMDC Secretary General Rai Mazhar Iqbal Kharal said the corporation’s lease had been lawfully renewed and remained valid until March 2032. He described the Punjab government’s decision to cancel the lease and auction the same mining area to a private company as legally and commercially contentious.
The dispute is already pending before the Lahore High Court, where PMDC has challenged the cancellation and maintained that its mining rights remain valid.
Union Warns of Impact on $200m Investment
Kharal said the uncertainty surrounding the lease could affect a proposed $200 million investment in downstream rock salt processing and value-addition facilities.
According to the union, the project was expected to bring modern technology to the sector, create jobs, increase exports, generate foreign exchange and strengthen Pakistan’s position in international markets for processed rock salt products.
He said uncertainty over legally granted mining rights could discourage investors and undermine government efforts to attract foreign capital into value-added mineral projects.
Thousands of Jobs Reportedly at Risk
Warcha union leader Mian Aftab-ul-Hassan also expressed concern over the livelihoods of workers, miners and families dependent on the mine.
He said any disruption to operations could have serious social and economic consequences for employees and nearby communities.
The union maintained that PMDC had operated the Warcha mine for decades and had developed infrastructure, technical expertise and large-scale extraction capacity while generating revenue for Punjab.
CBA Questions Award to Private Company
The workers’ body also questioned the decision to award the mining area to a private company that, according to the union, lacks PMDC’s experience in large-scale rock salt exploration, extraction, processing and resource management.
The CBA claimed that PMDC had offered the Punjab government higher financial returns than those expected under the auction arrangement.
It argued that allowing the corporation to continue operating the mine would have provided greater long-term benefits to both the provincial and federal governments while protecting production and employment.
Call for Regulatory Certainty
The union urged authorities to protect employment, uphold contractual commitments and ensure transparent decision-making in the mineral sector.
It said investor confidence depended on regulatory certainty, the stability of mining rights and consistent enforcement of agreements.
The CBA also reaffirmed its support for PMDC’s legal challenge before the Lahore High Court and called for the Warcha mine to be treated as a strategic national mineral asset.
The dispute intensified after Punjab cancelled PMDC’s renewed lease and auctioned the mining area to a private company. PMDC continues to maintain that its lease is valid until 2032.
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