ISLAMABAD: The governor of Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province announced a suspension of all gold mining activities and the cancellation of mining leases on Saturday, alleging that proceeds from illegal mining were being used to finance militant activities and depriving the national exchequer of billions of rupees.

The announcement came days after militants ambushed vehicles carrying police officers in the province's Kohat district, triggering a gunbattle that killed at least 10 officers and 18 militants. The officers were returning from an operation targeting criminals involved in illegal gold mining in the area. The Pakistani Taliban, also known as Tehreek-e-Taliban Pakistan (TTP), claimed responsibility for the attack.

Speaking at a news conference, KP Governor Faisal Karim Kundi said the provincial administration had launched an operation against illegal gold mining following the imposition of emergency rule last month. He alleged that illegal miners were paying extortion money to the Pakistani Taliban in exchange for protection.

“We have decided that all gold mining activities in Khyber Pakhtunkhwa are being suspended,” Kundi told reporters. “And all gold mining leases are being canceled.”

Giving details of the scale of illegal mining in Kohat, Kundi said operations were underway in two areas identified as blocks C and D.

The governor said around 8,350 trucks, 3,660 excavators, 1,730 tractor trolleys with dynamos, 1,600 dumpers, 200 heavy loaders and between 49,000 and 51,000 laborers were involved in the mining activity.

He said illegal mining of gold worth Rs4.92 billion ($17.7 million) per month was being carried out.

“Eighty percent of this money was being sent to Afghanistan,” he said. “It was being used in terrorism, against Pakistan and for other uses.”

Kundi also named several politicians he alleged were providing protection to illegal mining operations, including opposition Pakistan Tehreek-e-Insaf (PTI) lawmakers Aftab Alam, Sheheryar Afridi, Khurram Zeeshan and former Pakistan Peoples Party lawmaker Amjad Afridi.

The governor said his administration had decided to establish a task force to develop a strategy within three weeks for regulating mining, improving security and ensuring environmental protection.

He said representatives of law enforcement agencies, the mines and minerals department, the finance department and district administrations would serve on the task force.

Kundi said the government would not target political opponents and would act only in accordance with the law against those found involved in illegal gold mining.

“If there is no system of reward and punishment, neither this province nor this country will move forward,” he said.