ISLAMABAD: The collective bargaining agent of the state-owned Pakistan Mineral Development Corporation has cautioned that the cancellation of PMDC’s Warcha rock salt mining lease by Punjab has placed a proposed $200 million foreign investment under uncertainty, besides threatening thousands of jobs and investor confidence in the country’s mineral sector.
Addressing a news conference, All Pakistan CBA Unions of PMDC Secretary General Rai Mazhar Iqbal Kharal said the corporation’s lease had been renewed in accordance with law and was valid until March 2032. He termed the provincial government’s decision to cancel the lease and auction the same mining area to a private company legally and commercially contentious.
He said the matter was already before the Lahore High Court and warned that the dispute could hurt Pakistan’s efforts to draw foreign investment into value-added mineral exports by creating doubts over the continuity of legally granted mining rights.
Rai Mazhar Iqbal said the proposed $200 million investment in downstream rock salt processing and value-addition facilities was expected to bring modern technology, generate employment, improve exports, increase foreign exchange earnings and strengthen Pakistan’s standing in international markets for processed rock salt products.
Warcha union leader Aftab Ul Hasan also warned that uncertainty over the lease could deter future investment in Pakistan’s mining sector. He said investor confidence depended on regulatory certainty, contractual stability and transparent decision-making.
He expressed concern over the livelihoods of thousands of workers and miners linked with the Warcha mine, saying any disruption in operations could cause serious social and economic consequences for employees and nearby communities.
According to Aftab Ul Hasan, PMDC has operated the Warcha mine for decades as one of Pakistan’s strategic mineral assets, generating substantial revenue for Punjab, developing mining infrastructure and building technical expertise in large-scale rock salt extraction.
The union claimed that PMDC had offered the Punjab government higher financial returns than those envisaged under the auction arrangement. It argued that continuation of PMDC’s operations would have ensured greater long-term benefits for both the provincial and federal governments while maintaining uninterrupted production and employment.
The CBA also questioned the award of the lease to a private group which, according to the union, did not have an established track record in large-scale rock salt mining comparable to PMDC’s decades of experience in mineral exploration, extraction, processing and resource management.
Reaffirming its support for PMDC’s legal challenge before the Lahore High Court, the CBA urged the authorities to protect jobs, uphold contractual certainty and safeguard national mineral assets for sustained investment and long-term development of Pakistan’s mining sector.
The Warcha lease dispute deepened after Punjab cancelled PMDC’s lease renewal and later auctioned the same mining area to a private company. PMDC has challenged the move in court while maintaining that the lease remains valid until 2032. The dispute has also created uncertainty over the corporation’s planned downstream processing projects and foreign investment initiatives.
