ISLAMABAD: The collective bargaining agent (CBA) of the state-owned Pakistan Mineral Development Corporation (PMDC) has warned that Punjab’s cancellation of PMDC’s Warcha rock salt mining lease has created uncertainty for a proposed $200 million foreign investment, threatened thousands of jobs, and risked undermining investor confidence in Pakistan’s mineral sector.
The Secretary General of All Pakistan CBA Unions of PMDC Rai Mazhar Iqbal Kharal in a news conference said the corporation’s lease had been lawfully renewed and remained valid until March 2032, describing the provincial government’s decision to cancel the lease and auction the same mining area to a private company as legally and commercially contentious.
He said said the dispute, already pending before the Lahore High Court, could adversely affect Pakistan’s efforts to attract foreign investment into value-added mineral exports by creating uncertainty over the continuity of legally granted mining rights.
Rai Mazhar Iqbal further said the proposed $200 million investment in downstream rock salt processing and value-addition facilities was expected to introduce modern technology, create employment, boost exports, increase foreign exchange earnings, and strengthen Pakistan’s position in international markets for processed rock salt products.
Leader of Warcha union Main Aftab Ul Hasan also warned that uncertainty surrounding the lease could discourage future investment in Pakistan’s mining sector, arguing that investor confidence depends on regulatory certainty, contractual stability, and transparent decision-making.
Aftab ul Hasan also expressed concern over the livelihoods of thousands of workers and miners associated with the Warcha mine, saying any disruption to operations could have significant social and economic consequences for employees and surrounding communities.
According Main 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 further claimed PMDC had offered the Punjab government higher financial returns than those envisaged under the auction arrangement and argued that continuation of the corporation’s operations would have delivered greater long-term benefits for both the provincial and federal governments while ensuring uninterrupted production and employment.
The union also questioned the award of the lease to a private group that, according to the CBA, lacks an established record in large-scale rock salt mining compared with PMDC’s decades of experience in mineral exploration, extraction, processing, and resource management.
The CBA reaffirmed its support for PMDC’s legal challenge before the Lahore High Court and urged authorities to safeguard employment, uphold contractual certainty, and protect national mineral assets to sustain investment and long-term development of Pakistan’s mining sector.
The Warcha lease dispute has intensified after Punjab cancelled PMDC’s lease renewal and subsequently auctioned the same mining area to a private company, a move that PMDC has challenged in court while maintaining that the lease remained valid until 2032. The dispute has also cast uncertainty over PMDC’s planned downstream processing projects and foreign investment initiatives.
