Revenue Enhancement of Mines and Minerals Department Gilgit Baltistan

Through Grant of Mineral Titles (Exploration Licenses, Mining Leases, royalties, dead rents, penalties) Auction of Study areas after making of blocking and amendment in the Rules for Large-Scale Mining to attract the sound investors. Through installations of weigh bridges (Exact quantity check) along with hand held XRF (Exact quality check). Exact calculation of mineral quantity and quality wise will enhance the revenue. In this respect, project namely, Establishment of heavy weigh bridges at exit points is already approved through ADP and section 4 is already enforced for acquiring of land and department will tender for weigh bridges and hand held XRF machines in this financial year subject to availability of development fund. The national and foreign investors, who did JVs, will be bound for establishment of Mineral Processing Unit so that the value-added minerals will bring revenue. For this amendment is proposed in MCR-2016. Digital transformation (i.e. automation, data analysis and real time monitoring) will optimize operation, reduce time and improve overall efficiency resultantly contribute towards the revenues. The above objective will be attained by Geological Mapping and Establishment of cadaster system. Strengthening of 07 check posts in GB for control of illegal transportation of mineral from GB to down country as well as to China. In this respect, the department submitted requirement of staff to rationalization committee. Further, working on combine check posts under one umbrella is under consideration under the chairmanship of Home Secretary, wherein, Police, Excise & Taxation and Minerals Department will operate jointly. This measure will support to enhance the revenue generation. The existing lapidary center is needs to upgrade for value addition of gems stone through polishing, cutting and carvingand subsequent establishment of accreditation and branding facility will enhance the revenue generation. However, the Mineral Department, GB on the directives of Chief Secretary, GB is working on Thai-model of gemstone production and will submit the concept paper in 2 months. The development and implementation of that model in GB will play important role in economic landscape of GB by generating revenue, providing employment and fostering expertise in gemstone market nationally and internationally.  The systematic mechanism to access to explosive needs to be developed and explosive to unauthorized persons need to controlled so that illegal mining will be controlled and legal mining will be encouraged resultantly revenue will be enhanced.  The Gilgit Baltistan consists of tough and rough terrain with high mountains. There is no easy access to mineral potential sites. The investment likely to be made by investors in these areas become un-practicable virtually due to non-accessibility and required huge investment on development of infrastructures up to mining sites. This discourages the investor to invest in area resultantly affects the revenues. Therefore, infrastructure development from mine to processing facility /market is need of the time. Gilgit Baltistan is supposed to be a hub for mineral based industries due to varieties of minerals in the area, but unfortunately no mega scheme has been initiated to tap these minerals. For that purpose, schemes may be reflected in PSDP annually for mineral surveys and investigations for resource estimation to generate authentic mineral data and the same practice may be continued for every financial year. The data may be used to attract the sound national and international investor.

Strengthening of Existing Mineral Testing Laboratory

The Department has established Mineral Testing laboratory with some basic testing instruments for mineral sample analysis services to the investors on bare minimum charges, which required further strengthening by advanced laboratory instruments and machinery. The lab also needs an engineer to maintain, calibrate and up-date the existing machinery. However, due to non-availability of the maintenance services, the lab often stops its rock analysis services to the investors. For that purpose, department approaches various service provider companies for its maintenance/ repair and owing to high cost couldn’t repairthe machinery in time. Furthermore, there is need to upgrade the existing lab for testing of light element i.e. lithium etc. For this purpose, the department will submit a PC-1 of up-gradation of existing Mineral Testing laboratory to P&DD, GB for inclusion of the same in next ADP. PC-1 costing up to Rs. 40.00 million will be submitted to P&DD for financial year 2024-25.

Gemstone Value addition facilities on modern scientific lines

Gilgit Baltistan has been blessed with the huge potential of Gems stone (precious and semi-precious) and Locals are extracting the Gemstone on their own capacity and sell them as rough material for very low cost to other non-locals or foreigners and causing huge loss not only to Government but to whole region also. The Department is running a small-scale lapidary center with very basic machineries and imparting training to local youths to produce skilled manpower for mineral sector GB. However, there is need to up- grade and strengthen the lapidary center to meet the modern requirements, participate and compete in the national and international gemstone market. The mines and mineral department working on Thai- model to create a sustainable gemstone cutting polishing industry for GB on the directions of Chief Secretary and have to submit the proposal within 2 months. Recently, the Ministry of Industries & Production Islamabad has transferred the machinery and HR of Gems and Jewelry Development Company (PGJDMC) to GB Government. They are providing training facilities in gemology, cutting polishing and carving as well as gems testing Facility. However, there is no facility for certification and branding of the Gemstone in GB. However, the Ministry of Commerce, has declared some gemstone and non-metallic minerals as Geographical Indication (GI) product of Gilgit Baltistan. The Department is pursuing the case with Ministry of Commerce for extension of accreditation and branding facility of GI products in GB. This will take about 1 to 2 years for establishment of accreditation institution as correspondence, in regard, is on way.

Complete Geological Mapping and Cadaster System for GB

Geological Survey of Pakistan (GSP)has been approached through the platform of SIFC for Geological Mapping of entire GB and GSP has assured that 70% of geological mapping of will be completed by June, 2024. Further, a cadaster system for banking, dissemination of online data on mineral of GB and online registration for mineral titles, uploading of complete information of occupied and vacant mineral potential areas etc is required to be established in Mineral department, GB. In this respect the Ministry of Petroleum and Natural Resources has approved project namely Establishment of National Minerals Data Centre (NMDC), Islamabad; wherein; the GB chapter is also included and concern Ministry has provided some basic instruments and did networking in Directorate of Mines and Minerals for establishment of National data center. The Federal project team is confident that they will establish cadaster system for GB by July, 2024 and accordingly will train the staff and also depute their staff in Mines and Mineral Directorate, GB for running the cadaster system. This Geological Mapping and Subsequent establishment of cadaster system will upgrade the Mineral Sector of GB manifold in term of regulation, transparency, monitoring and revenue Generation. Further, this will facilitate/ease the investors for investment in GB.