PESHAWAR, June 8: Non-provision of the funds required for two mining projects of soapstone and coal in Kurram and Orakzai tribal regions has delayed exploration work despite passage of one year, official sources said.
"The two mining projects is a joint venture of the Fata and Pakistan Mineral Development Corporation (PMDC) that has been delayed for almost a year due to bureaucratic hurdles," said an official of the PMDC.
The PMDC is a public sector organization which functions under federal ministry for petroleum and resources and responsible for exploration and development of mineral resources.
The sources citing reasons for the delay said the projects hit snags due to objections and quarries of the Accountant General of Pakistan Revenue (AGPR). The AGPR was of the view that it will release funds for the projects only when the PMDC transferred its equity to the project's account, which was done but still there was delay in the release of funds," said a PMDC official.
According to the agreement signed between PMDC and the governor's Fata secretariat, the PMDC has the equity share of 51 per cent and the governor's Fata secretariat has 49 per cent share whereas in soap stones project the shares are 30 per cent and 70 per cent respectively.
The PMDC and Fata secretariat have already signed a memorandum of understanding (MoU), an official said. The PMDC has established its office from its own resources and the corporation has conducted survey in certain parts of the tribal area for developing infrastructure like roads leading to soapstone mining.
Agreement was also signed between PMDC and the local elders of the Orakzai agency for the exploration of coal mines in the region. Survey conducted by the PMDC estimated that about 3,000 tons of mineral commodity would be produced in the first year of its exploration.
The capital cost and the working capital requirements of the soapstone project in Kurram region and coal project in Orakzai region is estimated at about Rs 6.072 million and Rs 9.67 million, respectively. Geologists said that the Fata along the Afghan border had huge deposits of minerals including coal, soapstone and marble which should be explored.
