The government has launched a policy incentive in order to expand mineral development activities in the tribal areas mainly through private investment with particular focus on infrastructure development in the mineral bearing areas.
The Fata Governor Secretariat for this purpose is pursuing three-facet policy, including mineral exploration and development, grant of mineral concessions and establishment of rescue/training centers.
The main thrust is on attracting local/foreign investment, encouragement of mineral-based industries, identification of promising mineral areas for master planning of infrastructure and projects, private sector technical and financial expertise, provision of mines' safety, rescue and training centers in major mining areas, co-operation and facilitation of joint ventures and technology transfer arrangements.
The collaboration of Geological Survey of Pakistan, NWFP University of Engineering and Technology, Pakistan Atomic Energy Commission and national and international agencies has been sought in exploration of about 27 million tonne estimated copper reserves in Shinkai area of North Waziristan.
Work on copper enrichment and establishment of a proto-type plant is under consideration involving the NWFP University of Engineering and Pakistan Science Foundation.
In Orakzai Agency work on exploration and development of coal has begun on joint venture basis with PMDC. An estimated 8 million tonne coal reserves exists in the Agency.
Similarly, a scheme for exploration and exploitation of soapstone deposits in Kurram Agency costing Rs 33.31 million is under execution in joint ventureship with the PMDC. About 700 tonne soapstone has so far been mined out of which 30 tonne soapstone has been transported to Italy for its qualitative assessment in the international market.
About 8000 tonne demand exists with the Export Promotion Bureau of Pakistan. In addition three number of leases were also granted to private parties for exploration and mining.
Moreover, work on a scheme 'investigation and evaluation of manganese in Bajaur Agency costing Rs 35.549 million has been initiated. A mines rescue/ safety and labour welfare center is being established in Orakzai Agency costing Rs 40 million to provide safety to coal miners for which equipment along with ambulance have already been procured.
Infrastructure development is a prerequisite for mineral work, which is being attached due priority. An amount of Rs 174 million has been allocated under 8 schemes in different agencies for construction of about 80 km long roads while Rs 200 million have been proposed in the next five year plan for construction of additional roads in Fata's mineral bearing areas.
A major development is the discovery of potential for oil and gas in Khyber Agency for the first time in the tribal belt and these reserves would be a major attraction for local entrepreneurs. The concerned department after completion of further studies in the selected areas would invite interested firms for possible investment.