PESHAWAR, July 6: Brick prices have shot up as kiln owners struggle to cope up with spiralling coal prices. The owners warned that kilns faced imminent closure if the rates of the coal were not fixed as the coal prices have shot up within one year from Rs15,000 to Rs50,000 as kilns were dependent on the coal for fuel.

Falak Niaz, owner of a kiln on Phando Road in Peshawar, said there were about 100 kilns which produced bricks used as construction material but 50 per cent of these had been closed down in the last six months due to high coal prices.

"The other kiln owners are also thinking to close down their kilns because the total loss per month is about Rs80,000. But they are in a dilemma because a kiln which cost them Rs300,000 would just turn into dust if these were closed down," Mr Niaz said.

According to the kiln owners, prices of the coal are high because coal is brought from Quetta, Hyderabad and Hangu to the kilns in Peshawar and the coalmines are owned by private owners and rates of the coal are not fixed.

Ten tons of coal brought from Hangu would cost about Rs15,000 a year ago but now the prices have shot up to Rs50,000. The manufacturing cost of bricks is Rs1,850 and it is sold for Rs1,700, hence, the kiln owners are facing loss in the business.

"We want a controlled rate of coal because the kiln industry is dependent on coal for fuel and the private owners of the coalmines mines have increased the rates sharply," said Haji Shahid Khan, another kiln owner.

About 200 labourers work in these kilns and their families living in the labour colony situated near these kilns are dependent on brick-making for their living. Abul Hassan, an owner of the coalmines in Hangu district, justifying the increase in the coal prices said the private owners were faced with some difficulties.

He said the cost on extracting coal from mines which was more than 1,500 feet deep was high. "Earlier, the mines were not much deep, therefore, it was easy and cheaper to extract the coal but as the labourers had to dig very deep and also remove the water.

The mining expenses are also increasing which is the main reason of high price of coal," Mr Hassan said. About 3,000 mine workers work in the coalmines in Hangu but their income per day is not fixed.

The mine workers extract 500 tons of coal per day. "Sometimes the mine workers are paid double if they have to dig deep. "Moreover, electricity is generated through generators run with diesel which is quite expensive. All this eventually affect the prices of coal," Mr Hassan said.

There are three types or qualities of coal in 25 coalmines in Hangu. The prices differ due to quality. The price of the best quality coal is Rs45,000, the other two qualities are sold for Rs25,000 and Rs35,000.

Most of the industries, especially cement and paper industry, are switching over to the coal consumption which has caused the increase in demand of the coal as fuel. There are 25 cement units all over in the country and about 21 of such units have completely switched over to the coal consumption.

The demand of the coal has increased causing sharp rise in the coal prices. "The mining of the mineral resources on outdated ways by the private sector have caused damage and decreased the potential of the mines," said a geologist.

Pakistan Mineral Development Corporation (PMDC) Director Yaqub Shah said coal resources were depleting fast as the private owners lacked technical expertise to explore minerals.

"There is need for new explorations of coalmines on scientific ways to fulfil the requirement of coal for the industrial sector," Mr Shah said. The Pakistan Mineral Development Corporation, in collaboration with Governor's Fata Secretariat, plans to give mining training to private owners of the coalmines.

"A mining force will give technical information to explore the mines scientifically so that minerals can be explored and mined without damaging the mines for further use," Mr Shah revealed.

There is potential for new explorations in Fata, especially in Orakzai Agency, Karak, and FR Dera Ismail Khan region. The Geological Survey of Pakistan has already started exploration in these areas.