ISLAMABAD: The collective bargaining agent (CBA) of the state-owned Pakistan Mineral Development Corporation (PMDC) has warned that the Punjab government’s cancellation of PMDC’s Warcha rock salt mining lease has created uncertainty over a proposed $200 million foreign investment, threatened thousands of jobs and risked weakening investor confidence in Pakistan’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 remained valid until March 2032. He described 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 the matter was already pending before the Lahore High Court and could adversely affect Pakistan’s efforts to attract foreign investment in value-added mineral exports by creating uncertainty over 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 introduce modern technology, create employment, boost exports, increase foreign exchange earnings and strengthen Pakistan’s position in international markets for processed rock salt products.
Warcha union leader Mian Aftab Ul Hasan also warned that uncertainty surrounding the lease could discourage 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 associated with the Warcha mine, saying any disruption to operations could have significant social and economic consequences for employees and surrounding 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 further claimed that PMDC had offered the Punjab government higher financial returns than those envisaged under the auction arrangement. It 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 CBA also questioned the award of the lease to a private group which, according to the union, 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 the 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 intensified after Punjab cancelled PMDC’s lease renewal and subsequently 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 dispute has also cast uncertainty over PMDC’s planned downstream processing projects and foreign investment initiatives.
