PESHAWAR: The Khyber Pakhtunkhwa government on Thursday claimed that a Chinese mining investment company had caused $0.2 million loss to the provincial kitty by illegally exporting 500 tons of antimony in the name of laboratory tests.

The claim was made by minister Ziaullah Afridi during a news conference here. Rejecting the claim of the Chinese firm, Tuny Pak Mineral Private Limited, that the government is using delaying tactics in issuing antimony exploration licences to it, the minister said issuance of such licences had been stopped until the announcement of the mining policy, work on which was expected to be completed by July 30 this year.

“Ban on exploration licences is our compulsion as the successive governments have not bothered to make a policy for the mining sector and used to award contract at their free will without fulfilling legal formality but the random distraction of mines will no longer continue,” he said.

The minister claimed that work on the mining policy had been completed by the working group for reforms and that all the mines would be auctioned through open bidding in front of media and other stakeholders to ascertain transparency.

He said illegal excavations of mines had been stopped and some 40 people had been arrested so far in different districts and that no one would be allowed to exploit local natural resources and therefore, several licences of influential people, including that of PPP leader Faryal Talpur, had been cancelled as they were illegally issued in the past.

The minister said a lincence had been issued to the Chinese company for antimony exploration only for an area of 163 square kilometers but it paid full attention on mining the antimony, which had already been explored by SDA.

“The firm did not pay heed to exploration of new mines but its aim was specific to excavation of antimony,” he said, adding that after expiry of three years of licence for exploration, the firm applied for mining lease and tried to sell out 700 tons of antimony through export.

The minister said the laboratory tests, provided by the firm, he said were unsatisfactory and the firm violated the rules and tried to deceive the mining and mineral department.

He said the department was investigating the case so that the people involved in illegal business could be punished.

“The Tuny Pak Mineral Private Limited is not working transparently and thus a regulatory body has already asked it for clarification but it failed to satisfy the government. He said that independent monitoring teams had been established which had completed 28 inspections and some 90 mining leases had been cancelled on basis of illegalities including keeping the area idle.

He said the mines and mineral department would recruit some 200 people, besides the filling of 100 posts in development schemes to meet the requirement of staff. He said that prospective mineral blocks had been delineated for offer to investors internationally to proactively increase contribution of minerals to the economy of the province.

Meanwhile, representative of another Chinese firm Tuan Mining Company, Mr Wu Xing Zhong said that some 10 Chinese firms were working in mining sector in KP but no one had asked them for any sort of commission or partnership. He said that the investors had to follow rules of the country and avoid playing in hands of others. He avoided disclosing if it had any local partner or not.

Mineral and mines secretary Mian Waheeduddin, director general Shakirullah and other officials were also present on the occasion.