Insignificant .. no
Upgrading the gemstone industry
— PUBLISHED Mar 02, 2009 12:00am
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THE North Western Frontier Province has a huge treasure of precious and semi-precious stones.
These include emerald, ruby, pink topaz, quartz, tourmaline, beryl, moonstone, chalcedony, zircon, aquamarine, garnet, kunzite and peridot. Peshawar is called a `gems city` as gem-buyers throng this city in search of precious stones.
According to an estimate, there are 70 million carats of emerald in Swat, 09 million carats of pink topaz in Katlang, Mardan, and 10 million carats of peridot in Hazara and Kohistan. For aquamarine and tourmaline in Chitral and for garnet in Bajor Agency, no official estimate is available.
Gemstone traders say most of these hidden treasures in this `Treasure Island` still await exploration. They believe that alongside the snow-covered Himalayas, the Hindu Kush and the Karakoram ranges vast untapped reserves of gemstones are buried.
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Columbian emeralds are considered the best, but the emeralds of Mingora, Swat, are prettier and costlier. Emeralds are also believed hidden at Gandao of Mohmand Agency and Amankot, Mora Darra, Barang Dawn photo library
in Bajaur agency, Makhad and Charbagh in Swat district and Khaltaro in Gilgit. These deposits, except Charbagh and Makhad, still lie unexplored.
Though some believe Katlang`s topaz is equivalent to its Brazilian variety in standard, but many rate it of higher quality. “The Katlang topaz is simply matchless in beauty, weight, hardness and shine. It is as hard as diamond, says Abdul Moeed Khan, a local gem expert. According to him, the Mingora emerald and Katlang topaz can fetch prices up to Rs20,000 per carat.Their prices increase with their weight and beauty. Moeed says that at Katlang topaz of the quality of sapphire has also been found.
The aquamarine of Chitral and Kalam and peridot of Indus, Kohistan and Hazara are amongst the world`s prettiest gemstones. The latter is a light yellowish green to dark green stone of the finest variety found only in Pakistan and Myanmar.
According to former speaker of the NWFP Assembly Abdul Akbar Khan, if the sector is fully developed, it can fetch hundreds of billions of rupees for the province, which, instead of exporting labour, can attract manpower outside the province.
“At present, three emerald deposits at Mingora, Shamozai (Swat), Buner, and topaz sites in Katlang have been auctioned for 10 years for Rs54 million, Rs44 million and Rs9.5 million respectively. There are many other unexplored sites as well,” says Akbar. He thinks that the province is getting a peanut share in return of its wealth. “The sector is currently included in the concurrent list. It should be brought under provincial control at the earliest” He laments that emerald deposits at Mingora and Shangla Buner have been practically abandoned due to law and order situation.
Some foreign experts suggest that if only emerald mining in Swat valley is modernised, the country will be able to pay off its foreign debts within two years.
“If the government and the business community work seriously in this sector for the next six years, $10-12 billion can be earned for the country which is 50 per cent of the entire export,” Trade Development Authority of Pakistan (TDAP) chief executive Syed Muhibullah Shah said at the gems and mineral show in Peshawar.
Experts believe there are huge prospects for investment in this sector in terms of scientific mining and cutting and polishing of gemstones. Computer-aided designing and manufacturing courses for gems and jewellery workers should be organised which will add to their value and also increase investment in the sector, they say.
The sector has a big potential but it is in the shambles and a large quantity of the precious and semi-precious stones is exported raw. Then there is illegal gems trade. As most of the precious stones exist in remote areas, there is an urgent need of infrastructure development.
Indiscriminate blasting and rough cutting spoils the precious mines and stones. Law and order situation, lack of modern cutting and polishing facilities and indifferent attitude of the government is hindering the opening of local training and purchase centres and creating problems for the gems sector. Fazle Mabood, an expert, criticises the nominal leasing money. “A minimum of half a kilo average weight of emerald can be found daily. Now compare this with per carat price and think for yourself how cheaply the deposits are being leased,” says Mabood.
The website of the mining and mineral department, NWFP, which oversees the gems business has neither relevant data nor contact details.
Lack of adequate gem-identification facilities and limited understanding of gemstone often lead to selling of precious stones at cheap rates. Currently there are five gems and gemological institutes in Pakistan (GGIPs) located at Gilgit, Peshawar, Karachi and Quetta. These GGIPs serve as gem identification and certification centres.
Sources within the All Pakistan Commercial Exporters Association say that these laboratories have limited identification capacity and work with outdated tools. More gem-training centres and gem-processing factories are needed at places where gemstones mines are located.
Locals of the areas where these gems are found and the province are not given a fair share in the income of its trade. The mineral policy provides 10 per cent royalty on precious stones. There are no provincial or local taxes on minerals or mining operations. These need to be amended, royalties increased or the resources handed over to the provinces.
Veteran Pukhtoon nationalist leader Azam Khan Hoti had said “If Punjab and Sindh can have control over their wheat, cotton, and rice-crops and gas, why can`t Pukhtoonkhwa (NWFP) have it on its forests, mineral and water
resources? It is this lack of equity that spoils things.
The neglected emerald mines of Swat
JAMAL UD DIN — PUBLISHED Aug 03, 2014 06:52am
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A man works in an emerald mine in Mingora. —Dawn
Famous for its dazzling hamlets and eye-catching picnic spots, Swat also has precious emerald mines that if properly explored can generate a huge revenue for the country. The precious gemstones rank among the best in the world.
Discovered in 1958 in Wali-i-Swat’s era, the precious emerald mines are still yielding a meagre revenue because of unavailability of skilled labourers, latest machinery and cutting and polishing facilities. These mines were once a source of livelihood for thousands of people of Swat, but due to lack of interest and negligence on part of the Khyber Pakhtunkhwa government only one of the three emerald mines is presently functional.
Also read: Closure of mines costing KP dearly
The mine in Fizzagat, near the district headquarters Mingora, is functional while one each in Shamozai, Swat, and Shangla district are closed for the last many years. Outlawed Swat Taliban had reportedly plundered the precious gemstones to run their activities after taking control of Swat valley in March 2009.
Discovered in 1958 in Waali-i-Swat’s era, the precious emerald mines are still yielding a meagre revenue due to unavailability of skilled labourers, latest machinery and cutting and polishing facilities
Khalid Khan, the owner of Swat emerald mine, told Dawn that there was a great demand for emeralds in the international market, but because of lack of government the other countries, particularly India, had been taking advantage of the Swat emerald stone as it resembled the raw stone after value addition and then sold out as that of India in the international market.
He said that Swat emerald mine had remained closed from Dec 1998 to Dec 2010. He said that his company got lease of the mine in Dec 2010 for 10 years at Rs102.4 million. He said that there were about 500 labourers attached to the profession of discovering emeralds. “It is the only emerald mine, which is the property of the provincial government,” he said, adding that unfortunately the government had not been taking advantage of the natural resources accordingly.
Mr Khan said that if the government installed a cutting and polishing industry in Swat, it would be able to generate a sizeable revenue from the gemstone business.
“There is a great demand for emeralds in the international market but due to lack of facilities we are auctioning the discovered raw stones locally,” Mr Khan said and added that the local gemstone traders then supplied the precious stone to Peshawar, Dubai, Thailand and other markets of the world. The government, he said, should facilitate the business by establishing cutting and polishing industry in Swat and arranging gemstone exhibitions to create a space for the emeralds and other natural resources of the area in international market.
Wafa Mohammad, a mining engineer, said that Swat emerald mine was discovered in 1958 during Wali’s rule in the state of Swat. “After discovery of the mine it was run by Prince Ameer Zeb and Haji Ibrahim till the merger of the state in Pakistan in 1969,” he said and added that the West Pakistan Industrial Development Corporation looked after the mine till 1972 when the emerald mine was taken over by Sarhad Development Authority. He said that the Gemstone Corporation of Pakistan managed the affairs of the Swat emerald mine from February 1, 1979 to Feb 15, 1995.
“The federal government handed over the mine to the provincial government, which auctioned it in Oct 1995,” Wafa Mohammad said and added that a private company, Emerald Mining Company, got its lease and run it till Dec 1998. He said that after remaining closed for over 12 years the provincial government last auctioned the mine to a private owner in Dec 2010.
The engineer said that according to rules nobody was allowed to construct house in 150 feet radius of the mine, but there were so many houses built near the mine and no government authority took action of this illegal practice, which might harm the natural resources.
He said that during militancy in Swat district the insurgents uprooted fences around the mine. “The mine is unsafe now and people could easily enter the site,” he said and demanded of the government to take steps for protection of this asset of the province.
There are two major groups of labourers working in Swat emerald mine, which has reserves of approximately 70 million carats of emeralds. One group is getting fixed salaries, while the other is working on share basis with the owner.
Sher Ali, 50, said that he had been working in the mine from last two years on fixed monthly wage of Rs9,000. “When we discover emeralds the owner also gives us cash prize according to size of the stone,” he said. Barkat Ali, 36, said that they were working in groups of six labourers on share basis. “When we discover emerald stone, money equal to its 40 per cent price is distributed among the group of labourers,” Mr Ali said.
Tawab Khan, a gemstone dealer, told this correspondent that he usually got demands for emeralds from Peshawar, Afghanistan, Dubai and some other countries. He revealed that a major quantity of Swat emerald stones was supplied to India where value addition process was cheaper than other countries. He said that in order to get maximum benefit of the natural resources the government should install a cutting and polishing machinery in Swat besides making arrangements for imparting training to local labourers.
Owner Khalid Khan said that the only functional mine was damaged during militancy in Swat as miscreants carried out large-scale excavation in the emerald mine. He said that the government should take steps to make functional the other two emerald mines in Shamozai and Shangla district. This will not only generate jobs for people, but also yield handsome revenue for the government, he said.
When contacted, deputy director mines, Swat, Khan Badshah said that the auction process was underway to give the two mines on lease. He said that the government had established a training institute in Peshawar to impart latest skills to labourers. However, he said that the emerald mining was a private profession and the owners of mines should use modern technology for the excavation process.
Published in Daw
Gemstone business: Between a rock and a hard place
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Gemstone business: Between a rock and a hard place
The much-neglected gemstone business in Pakistan has taken another hit due to the deteriorating security situation
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Abdur Razzaq /
Photo: Abdur Razzaq
Published: February 15, 2015
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NAMAK MANDI IN PESHAWAR IS KNOWN INTERNATIONALLY FOR ITS VAST GEMSTONE COLLECTION. PHOTO: ABDUR RAZZAQ
Militancy and the subsequent military operations have left a mark on everything in Pakistan, and the gemstone business is no exception. A lack of government interest in supporting and bolstering the industry has aggravated the situation even further. As a result, the world-famous sapphires from Kashmir, emeralds from Swat, rubies from the northern areas and pink topazes from Katlang, Mardan, have failed to generate the attention and revenue they deserve.
Nearly 30% of the world’s gem deposits are located in the northern parts of Pakistan and adjacent provinces of Afghanistan, according to the Gems and Gemmological Institute of Pakistan. Apart from the famous stones mentioned earlier, good quality zircon, different varieties of quartz, aquamarine, tourmaline, sphene, spinel, zoisite apatite, epidote, morganite, garnet, scapolite, clino zoisite, xenotime, bastnaesite, peridot, nephrite, serpentine, red agate, diopside, pargasite, amethyst, scheelite, pollucite, chrome diopside and kunzite are also found in the mountainous belt from South Waziristan to Chitral.
Semi-precious stones at a gem shop in Peshawar. PHOTO: ABDUR RAZZAQ
. Gems that come in raw form are cut and polished by gem dealers in Namak Mandi. Many dealers who have enjoyed a steady business for decades are now looking for alternatives to survive. PHOTO: ABDUR RAZZAQ
Despite being rich in minerals, traders in Pakistan have little taste or appetite for gemstones. “Until recently, most of the business here was conducted by foreign traders but that has halted since they are too afraid to visit Peshawar now,” says Zeeshan Nawab, a gemstone dealer in Namak Mandi, Peshawar. The market, which was frequented by traders from Europe, the United States, Japan, Thailand and Dubai in the past, now only sees traders from China. “Gems from several mines in Mohmand Agency, namely barokhel, michani, ambar etc, are not being extracted in good quantity [either] due to [the] volatile security situation,” he adds. Nawab’s own business which flourished for the past two decades has been reduced to half its strength due to the ongoing militancy and military operations.
Rough gemstones being cut by a dealer in Namak Mandi. PHOTO: ABDUR RAZZAQ
Previously, traders from the US, Europe, Japan, Thailand and Dubai visited Namak Mandi for business but this has taken a massive hit due to the deteriorating security situation in the area. PHOTO: ABDUR RAZZAQ
Abdul Jalil, president of the Peshawar Gems and Minerals Trade Union and former chairman of the All Pakistan Commercial Exporters Association, further confirms that while huge quantities of gems were brought from Namak Mandi by different countries in the past, traders have now shifted focus to other places such as Afghanistan.
A change in government policy which requires foreign businessmen to make advance payments has damaged export even further. “How can a firm or a businessman send you advance payment without even looking at the goods he is purchasing? It is completely against export rules,” he complains.
Unplanned and improper extraction of gems, which reduces the value of the stones, has further hampered the industry’s revenue potential. “The provincial government generates a nominal revenue of Rs10 million annually from the Swat emerald mines,” says an official from the K-P Minerals Development Department, who spoke on the condition of anonymity. He elaborates that the figures can be much higher if modern methods and equipment are used since it will automatically increase the quantity of emerald obtained from these mines. The government’s negligence of the industry can be gauged from the fact that Namak Mandi does not have a laboratory for testing, despite being one of the biggest gem markets in Pakistan. Moreover, no geological mapping has been carried out in the region due to militancy and inadequate resources and the industry still relies on obsolete methods to extract gems. “If the government is really interested in reviving the gemstone industry, the least it could do is set up a state-of-the-art laboratory in Peshawar, linked to international laboratories,” he adds.
Emeralds from Swat are considered among the best in the world. PHOTO: ABDUR RAZZAQ
The officer also expressed concerns about Pakistan’s inability to compete with Russia, India and China due to a lack of expert miners and modern infrastructure. He elaborated how subsequent governments had failed to allocate sufficient funds to purchase up-to-date equipment and hire skilled labour for gemstone mining.
But the K-P Minister for Mineral Development Zia Ullah Afridi reassures that things will change soon. He claims that while 90% of the gems extracted during the previous government’s tenure were mined illegally, the number has been reduced to 15% now due to strict checks and balances. “Officials who were involved in illegal mining have been terminated. More than 200 mining leases have been cancelled,” says Afridi. He added that the provincial government would begin the bidding of precious stones mines next year, the expected revenue from which will be approximately Rs2 billion per year. Moreover, plans to set up an exhibition centre in Namak Mandi along with a lapidary for gemstone cutting and polishing is also in the works and experts from Bangkok will be brought on board to train local gem dealers on cutting and polishing. But until that happens, existing gemstone dealers have little choice but to move their businesses online or showcase their products at international trade shows if they can afford to do so.
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Illegal mining of gems 'spreading' in K-P, FATA despite govt ban
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Illegal mining of gems 'spreading' in K-P, FATA despite govt ban
By
Qaiser Butt
Published: April 1, 2016
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A craftsman checks a gemstone at a workshop in Peshawar. PHOTO: AFP
ISLAMABAD: Despite an official ban on mining of precious gems and semi-precious stones, illegal mining is not only rampant in Khyber-Pakhtunkhwa but also in the Federally Administered Tribal Areas (Fata), claimed a director of Pakistan Gems and Jewellery Development Company (PGJDC) on Friday.
“Emerald and precious pink topaz are illegally mined in Swat and Mardan and traded in the province,” Atif Rashid Khawaja told
The Express Tribune.
Besides, quarts, epidote corundum, smoky quartz from Dir, Kohistan, Mansehra and Swat are also being illegally extracted and sold by organised gangs, revealed Khawaja, who is also a former chairman of the All Pakistan Commercial Exporters Association of Precious and Semi-Precious Stones.
Ministry slaps ban on export of precious stones
Khawaja accused the Pakistan Tehreek-e-Insaf (PTI)-led K-P government of its failure to check such illicit business, saying “the provincial government has miserably failed to take measures to control this illegal excavation, which is repeatedly causing a loss of billions of rupees to the provincial exchequer since long”.
According to official sources, Swat has reserves of 70 million carats of emerald; Mardan is rich with the reserves of nine million carats of pink topaz while Kohistan has 10 million carats reserves of peridot.
Meanwhile, Provincial Minister for Minerals Development Anisa Zeb Tahirkheli denied reports of widespread illegal mining in the province.
She, however, admitted the pitiable infrastructure of her department had been causing numerous difficulties in streamlining the affairs.
Despite $1b in exports, gems and jewellery sector fending for itself
Tahirkheli told
The Express Tribune that she had received reports about illegal mining of emerald in a few houses in Swat, which proved incorrect after an investigation.
“Such illegal mining is not possible without the collision of subordinate officials of the department,” she said.
“For the first time in the province, Mineral Development Act 2016, initiated by the mineral development department, is soon going to be enacted in the province,” said the provincial minister.
Draft of the law to have proper infrastructure for the mineral development department was being drafted, she claimed, adding that illegal mining will become a punishable offence after the passage of the law by the provincial assembly.
While referring to the means of illegal excavation, Tahirkheli said, “The mining has been suspended in the K-P due to poor infrastructure and mining and issuance of fresh licences are banned in the province.”
She went on to say, “The department has been confronted with various administrative weaknesses and challenges for the several years. A large number of vacancies of surveyors, engineers and other experts are lying vacant since many months due to some [victorian] rules and regulation,” the minister upheld.
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According to the rules, the department has to fill the vacancies from within the department through promotion, she explained, adding that the implementation of such rules was not possible because of many legal and administrative issues.
The department has not been successful to find a suitable person for the post of director general mines and minerals, which has been lying vacant since many months.
The previous DG, Dr Liaqat Ali, had been arrested by the provincial Ehtesab Commission for financial irregularities last year.
His arrest and interrogation provided enough evidence to the accountability body, which subsequently rounded up the then provincial minister for mineral development Ziaullah Afridi for his alleged violation of mines allotment rules for financial advantage.
According to official sources, few other officials of the department have also been held for collaborating with Afridi.
Pearls of wisdom
Tahirkheli recently moved a summary for approval by K-P Chief Minister Pervez Khattak for recruiting the required workforce to run the department at the earliest.
“The Ehtesab Commission officials took the relevant record of the department with them after the arrest of Dr Ali and Afridi. The absence of the record is hindering our official business since last year,” the minister said.