Iraqi Environment Minister Jassem al-Falahi acknowledges that pollution from oil production is the main cause of increased cancer rates.
The communities near the oil fields are at an elevated risk of leukaemia, according to a report.
Gas flaring is thought to be the cause of these communities.
Cancer-linked pollutants are produced by wrinkling.
The environment minister's comments came despite an order from the Iraqi prime minister banning its employees from speaking about health damage caused by pollution.
The minister of oil denied all links between cancer rates and air pollution from oil.
Communities living near oil fields in Basra have long suspected that leukaemia is caused by gases being flared on the oil fields.
Flared gases from these sites emit a potent mix of carbon dioxide, methane and black soot which is very harmful to the environment.
The first pollution monitoring testing took place in the exposed communities. High levels of exposure to cancer-causing chemicals were found.
The oil ministry had previously prevented his staff from carrying out pollution monitoring checks at the largest oil field, according to Al-Falahi.
The Iraqi government owns the largest oil field in the world, and it flares more gas than any other field. The lead contractor of the field, BP, said that it is extremely concerned by the findings of the British Broadcasting Corporation.
They were denied entry permits to film at the site. Ali Hussein Julood, a 19-year-old childhood leukaemia survivor, said that nobody speaks out in the area. They fear speaking in case they are removed.
The situation has improved according to Al-Falahi.
If a company caused environmental damage, the departments would work together to issue fines.
The oil companies who work at the sites did not receive compensation for the health issues that the families suffered.
The impact of the oil giants' toxic air pollution on children and the planet is revealed in an Arabic investigation.
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