KP governor claims billions in gold proceeds financing militants, orders mining shutdown

Dubai: Could illegal gold mining be helping finance terrorism in Pakistan? That question has taken centre stage after the governor of Khyber Pakhtunkhwa alleged that billions of rupees generated from gold extraction were being channelled into militant activities.
Governor Faisal Karim Kundi claimed that around 90 kilos of gold, worth Rs4.2 billion, was being extracted every month in the province's Kohat district, with approximately 80 per cent of the proceeds going to Afghanistan.
The allegations, which have not been independently verified, emerged days after a deadly confrontation during an operation against illegal gold mining left 10 policemen and 18 militants dead.
Kundi announced on Saturday that all mining activities across Khyber Pakhtunkhwa would be suspended and gold mining leases cancelled, Geo News reported.
Leaseholders and contractors have been ordered to remove heavy machinery from mining areas within seven days.
According to the governor, illegal mining operators have been paying protection money to militant groups in exchange for being allowed to continue their activities.
He alleged that the money was subsequently used to finance terrorism and other activities against Pakistan.
Kundi said thousands of tractors, heavy dumpers and labourers were involved in illegal extraction operations.
He also questioned how a 10-year mining lease had been granted for Rs4.92 billion when the gold allegedly extracted was worth approximately Rs4.2 billion every month.
The governor's claims raise questions about oversight of mineral resources and the possible diversion of mining revenues to armed groups.
The crackdown follows a security operation at Darabo Kach, near Kohat, where police and local authorities moved against illegal gold mining.
According to officials, militants attacked police personnel as they were returning from the operation.
Ten policemen were killed, while authorities reported that 18 militants died in the ensuing confrontation.
Kundi alleged that the attackers had links to individuals involved in illegal mining.
He pledged that those responsible would face action.
The governor also alleged that 12 political figures had provided backing in connection with the Kohat incident.
Among those he named were former provincial minister Aftab Alam, Shehryar Afridi and Khurram Zeeshan.
However, Kundi acknowledged that no police cases had been registered against the individuals he identified.
The allegations of political involvement have not been independently established.
Kundi announced the formation of a judicial commission to investigate illegal gold mining and the Kohat incident.
He also approved a special task force named after DSP Haidar Zaman, one of the police officers killed.
The governor said the authorities would pursue those involved in illegal mining and protect the province's mineral resources.
The investigation will now face a crucial question: Whether the alleged flow of gold revenues to militant groups can be established through evidence — and who, if anyone, enabled it.
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