News shows that in his 23rd March 2007 application by Arshad Waheed to Mining Minister Sibtain Khan, it was acknowledged that “the concerned department of the Government of Punjab has discovered Hematite and Magnetite at the above reference location (Chiniot and Rajoa) during its preliminary exploration activities.” Here the question arises that why despite the initial discoveries the national wealth was sold out for mere 20% share, which too were never confirmed whether the company had any shares or not.
On 27th March 2007, Waheed wrote to Sibtain at his official GoR residential address, thanking him for the 23rd and 24th March meetings besides having been facilitated for meetings with Punjab Miniral authorities, including DG Mines. On the basis of these meetings, Waheed intended to enter into a joint venture with the government of Punjab to accomplish (i) Complete the exploration activities/prepare the techno-economic feasibility report, (ii) establish and commission a world class mining operation, and (iii) establish a steel mill.
The document added that by then the Punjab Mining Department was working on 1100 acres, but the ERPL wanted to apply for exploration rights for additional 5000 acres of the adjacent areas.
On April 23, the initial application of 23rd March was processed in the Mining Department with Sibtain Khan’s directions: “Pl process and put up a detailed report within three days. Treat it as a most urgent case.”
His then Secretary and other officials also marked it as “Time limit” case and sought the views of the MD, Punjab Mineral Development Corporation (PUNJMIN) within 3 days.
Sources said that some senior officials in PUNJMIN had their reservations and thus was not keen on going for this venture. The matter delayed; in September 2007 the PUNJMIN Board decided, “The Board directed Punjmin to hold negotiations with ERPL and put up case to the secretary Mines with agreed MoU for further approval of Government of the Punjab.”
Later, the Mining Department further pursued the case which when referred to Punjmin MD, he advised that the draft MoU with ERPL should be referred to the Finance Department as well as the Law Department for detailed review of legal and financial issues involved. However, the then secretary Mineral Department overlooked his advice and directed his additional secretary to prepare summary for the chief minister’s approval in regard to the joint venture. The same day fair summary was issued which was subsequently approved by the then chief minister following which the joint venture was signed.
In the summary, it was mentioned that the Iron Ore reserves are generally of low grade—the fact that has been totally denied by the recent successful explorations.
Following the 2008 elections, the following government of Shahbaz Sharif government revoked the fishy deal in 2008 whereas the superior judiciary also endorsed the decision and noted, “Stark violations in the disposal and transfer of public property and heartless breach of public trust by the public functionaries (public trustees) cannot be overlooked.”
The LHC added, “They (Those in the government) must act to achieve the collective interest. Indeed, there is a serious concern—a concern that history has repeatedly validated—that representatives of the government will develop their own interests and use the tremendous power granted them for purposes that did not reflect that collective good.” Both the LHC and the Punjab Government had referred the case to NAB.