The explosive device went off with a big bang at the site in the mountainous area of Darra, 20 kilometres northeast of Khar, the main town of Bajaur Agency.
The blast killed one person and wounded five others, officials said, adding the injured have been admitted to a hospital.
About a dozen tribesmen and members of the agency administration were digging at the site in Salarzai tehsil when the blast occurred, they said.
The members of the Salarzai Peace Committee have started investigation into the blast.
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