Islamabad (Digital Post) | Warcha Rock Salt Mine Dispute: $200 Million Investment and Thousands of Jobs at Risk, PMDC Unions Warn

Islamabad (Digital Post): The representative body (CBA) of the state-owned Pakistan Mineral Development Corporation (PMDC) has warned that the Government of Punjab’s decision to cancel the lease of the Warcha Rock Salt Mine has placed a proposed US$200 million foreign investment under uncertainty. The unions also cautioned that the move could jeopardize thousands of jobs and undermine investor confidence in Pakistan’s mining sector.

Addressing a press conference in Islamabad, All Pakistan CBA Unions of PMDC Secretary General Haji Rai Mazhar Iqbal Kharral stated that the Warcha mine lease had been legally renewed and remains valid until March 2032. However, he alleged that the Punjab Government cancelled the lease and subsequently auctioned the same mining area to a private company, Sapphire Chemicals, for a period of ten years.

According to Kharral, the agreement with Sapphire Chemicals is expected to generate Rs. 15 million per month for the Punjab Government, amounting to approximately Rs. 2.58 billion over ten years. He claimed that PMDC could generate an equivalent amount within just two to three years.

Kharral further stated that Sapphire Chemicals does not possess the level of expertise in rock salt mining that PMDC has developed over several decades in mineral exploration, mining, processing, and resource management.

He explained that the proposed US$200 million investment was intended to establish modern rock salt processing and value-addition facilities. These projects, he said, would introduce advanced technology, create new employment opportunities, increase exports and foreign exchange earnings, and strengthen Pakistan’s position in the global market for processed rock salt products.

Kharral noted that the matter is currently pending before the Lahore High Court. He warned that the dispute could discourage foreign investment in Pakistan’s value-added mineral products sector, as it raises concerns about the continuity and legal protection of mining leases granted under the law.

Speaking on the occasion, Warcha Union leader Mian Aftab-ul-Hassan also warned that the uncertainty surrounding the lease could become a significant obstacle to future investment in the country’s mining industry.

He said PMDC has operated the Warcha Mine for decades as one of Pakistan’s key mineral assets, generating substantial revenue for Punjab while contributing to mining infrastructure development and enhancing expertise in large-scale rock salt extraction.

Leaders of the CBA Unions, including CBA Head Office President Safdar Murtaza, Mirza Imran, Mirza Zamir Haider (General Secretary), Warcha General Secretary Ala Bakhsh Sangha, Chief Patron Mian Aftab-ul-Hassan, Kalabagh General Secretary Atta Rasool, President Imran, as well as representatives from Balochistan unions, the Sewerage Dekari Sharg Union, and the Quetta Branch Office, including Muhammad Ishaq and Bakht Nawab, announced their full support for PMDC’s legal petition before the Lahore High Court.

The union leaders urged the Federal Government, the Punjab Government, the Chief Justice, and the Chief of Army Staff to safeguard employees’ jobs, protect contractual rights, and ensure the protection of Pakistan’s national mineral resources so that investment and long-term development in the mining sector are not adversely affected.

It is noteworthy that the dispute intensified after the Punjab Government cancelled PMDC’s lease for the Warcha Mine and subsequently auctioned the same mining area to a private company. PMDC has challenged the decision before the court, maintaining that its lease remains legally valid until March 2032, while arguing that the ongoing dispute has created uncertainty surrounding its proposed processing projects and planned foreign investment.