Balochistan mines and minerals: Myth & reality

2026-02-19 - 00:13

EXAGGERATION prevails that it is very easy to explore, extract, process and export rare earth elements and critical minerals to foreign countries like US and China from treasures of mines and minerals of Balochistan. It is also hyped among all and sundry that companies of America or China and may be others will sign hefty deals with government of Pakistan dodging legal quagmires, geo-political tensions, bureaucratic hiccups and security precariousness. They will take away expensive light and heavy rare earth metallic elements without giving due share of local stakeholders. Frankly speaking, situation in Balochistan is other way round. It is like big Pandora’s Box brimming with profuse paradoxes. Most deposits of mines and minerals are the embroiled into gazillion complexities and impediments given the intricate geostrategic, geopolitical and geoeconomic scenarios. Even Reko Diq mines run by Canadian company Barrick Gold and Saindak mines operated by Chinese company China Metallurgical Group Corporations (MCC), are not immune to plethora of troubles. Although to some extent Redo Diq and Saindak are being managed but rest of rich resources of rare earth elements and critical minerals that are currently under global focus are excessively challenged politically, legally and administratively and so much so on security landscape. Recently, the entire issue was blown out of proportion. A few weeks back, international overtures created the illusion that Balochistan’s mineral treasures were ready for extraction, with exaggerated claims that the US government had finalized preparations to secure rare earth and critical minerals amid a wave of warm Pak-US relations. US Chargé d’Affaires Natalie Baker announced $1.25 billion in financing for mineral mining to drive economic growth, noting that EXIM project funding could bring $2 billion in high-quality US mining equipment and services for Reko Diq, creating 6,000 jobs in the US and 7,500 in Balochistan. “We look forward to further agreements between US and Pakistani companies in the critical minerals sector,” she said. Meanwhile, reports highlighted Chinese companies seeking greater access to Balochistan’s resources, with rumors spreading that Chinese mining machinery was being covertly employed without consent, raising security concerns and intensifying global attention. Soon China’s Assistant Minister of Foreign Affairs Liu Bin met with a delegation from Pakistan’s south-western province of Balochistan. Issue was raised that Chinese nationals have been in the crosshairs of separatist militants who believe Beijing is helping Pakistan exploit minerals in the underdeveloped province of Balochistan, where China has a strategic port and mining interests. Hearsay made many rounds that Beijing has been pushing Pakistan to allow its own security staff to provide protection to thousands of Chinese citizens working there, frustrated by the string of attacks on its citizens. Meanwhile, Balochistan’s mines and minerals sector came into enormous spotlight after the Department of Industries and Commerce granted it industry status last December. The region gained further attention during the Pakistan Minerals Investment Forum 2025 in Islamabad, a two-day event attended by over 2,000 participants, including 300 international delegates from the US, China, Saudi Arabia, the UK and other countries. At the forum, Prime Minister Shehbaz Sharif expressed optimism, stating that Pakistan’s vast mineral reserves could help the country reduce its dependence on the International Monetary Fund (IMF). Later, Petroleum Minister Ali Pervaiz Malik formally invited global stakeholders to participate in the Pakistan Minerals Investment Forum scheduled to be held in April 2026. During various government meetings, it was noted that, due to Pakistan’s immense potential, the world appears to be knocking at Pakistan’s door to secure minerals, reflecting increasing international interest. Let me put the entire scenario in larger and true perspective. As there are many a sip between cup and lip, issue of Balochistan’s mines and minerals sector hosts different twists and turns with extreme volatility. Among many, one of perilous problems is an enactment of friction-driven rules and regulations. On lawmaking procedures, confrontation erupted among government, opposition parties and other stakeholders in Balochistan. Tussle took a heavy toll on the progress of mines and mineral sector in region. Last year Balochistan government passed Mines and Mineral Act 2025. Initially, all parliamentary parties sitting on treasury and opposition benches signed the Act in tandem, later opposition parties including BNP, JI, JUI-F, Pakhtunkhwa Milli Awami Party and others opposed the act terming it violation of provincial autonomy and basic rights of people of Balochistan. Taking exception, Pakhtunkhwa Milli Awami Party said categorically that it resists any role assigned to federal government in Balochistan Mines and Mineral Act 2025. “Share of owners of mines and minerals should be protected and increased at any cost”, it demanded. Balochistan’s mineral, Pakhtunkhwa Milli Awami Party leader Rehmat Ziarat Wala said, have already been exploited against the will of the Baloch people. This new legislation is tantamount to the continuation of that similar policy exercised by the federal government, he added. The rift over Balochistan’s Mines and Mineral Act 2025 has extended beyond politics into the legal arena. BNP (Mengal) has filed seven petitions challenging the Act, with Senior Vice President Sajid Tareen claiming lawmakers were misled and the bill altered before passage. He criticized the Act for marginalizing local miners, inflating mining lease prices from Rs500,000 to Rs10 million and framing provisions to favour wealthy companies and foreign firms. Political leaders have stressed that local miners’ rights must remain a priority, achievable only if federal and provincial governments act sensibly. Concerns are rising that the sector could become a battleground for US and Chinese commercial interests, particularly after China restricted critical mineral exports, prompting Washington to pursue deals in mineral-rich regions. —The writer is contributing columnist. (yaseerkhan@hotmail.com)