ISLAMABAD: The collective bargaining agent (CBA) of the state-owned Pakistan Mineral Development Corporation (PMDC) has cautioned that the cancellation of PMDC’s Warcha rock salt mining lease by Punjab has put a proposed $200 million foreign investment under uncertainty, besides threatening thousands of jobs and raising concerns over investor confidence in the country’s mineral sector.
Addressing a news conference, Secretary General of All Pakistan CBA Unions of PMDC Rai Mazhar Iqbal Kharal said the corporation’s lease had been lawfully renewed and was valid till 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 pending before the Lahore High Court and could affect Pakistan’s efforts to attract foreign investment in value-added mineral exports by creating doubts about 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, increase exports, improve foreign exchange earnings and strengthen Pakistan’s position in global markets for processed rock salt products.
Warcha union leader Mian Aftab ul Hasan also warned that the uncertainty surrounding 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.
Aftab ul Hasan expressed concern over the livelihoods of thousands of workers and miners linked with the Warcha mine, saying any interruption in operations could have serious social and economic consequences for employees and nearby communities.
According to him, 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 continuing PMDC’s operations would have provided greater long-term benefits to both the provincial and federal governments while ensuring uninterrupted production and employment.
The CBA also questioned the award of the lease to a private group which, according to the union, does not have an established record in large-scale rock salt mining when compared with PMDC’s decades of experience in mineral exploration, extraction, processing and resource management.
The CBA reiterated its support for PMDC’s legal challenge before the Lahore High Court and urged the authorities to protect employment, uphold contractual certainty and safeguard national mineral assets for sustained investment and long-term development of Pakistan’s mining sector.
The Warcha lease dispute has 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 issue has also created uncertainty around PMDC’s planned downstream processing projects and foreign investment initiatives.
