Punjab readies transformational Mines and Minerals Act 2025

LAHORE: The Punjab government has finalised the draft of the Mines and Minerals Act 2025, a sweeping legal reform that seeks to overhaul the province’s mining governance system and unlock the economic potential of its untapped mineral reserves.

The draft, which officials describe as a cornerstone of Punjab’s natural resource policy, is slated to be presented before the provincial cabinet for formal approval in the coming days.

According to the details available with this correspondent, the proposed law is aimed at creating an internationally competitive, transparent, and investor-friendly environment for mineral exploration and mining operations across Punjab. It provides a comprehensive framework for regulating both large-scale and small-scale mining, institutional strengthening, digital infrastructure, and legal redress mechanisms—all aligned with global best practices.

Central to the Act is the formal reorganisation of the Directorate General of Mines and Minerals, which will serve as the provincial apex body for mineral resource administration. It will house a dedicated Licensing Division, tasked with evaluating and issuing mineral titles, and an Exploration Promotion Division, which will spearhead geological surveys, data collection, and investor outreach. Both divisions are to be fully operationalised and notified through official channels, with specific powers and responsibilities under the law.

The draft also introduces the Mining Cadastre System, a digital geo-referenced registry to ensure transparent and accurate recording of mineral rights. This will be managed by a newly designated Director Geo-informatics, who will oversee its development, enforcement, and integration with provincial databases. Officials expect the cadastre system to drastically reduce disputes, illegal mining, and duplication in licensing.

For administrative support, the Act mandates all district-level government bodies — including the District Administration, District Police, and relevant local departments — to extend full cooperation to the Director General of Mines and Minerals in the execution of mining operations. To strengthen field-level coordination, each district will also establish a District Mining Liaison Committee, fostering dialogue among officials, local communities, and mining stakeholders.

The law also introduces a two-tiered framework for mineral titles. For large-scale mining, licenses will be issued in a sequential manner — Reconnaissance Licence, Exploration Licence, Mineral Deposit Retention Licence, and Mining Lease. For small-scale mining, simpler titles — Prospecting Licence and Mining Lease (Small-scale) — will be available.

These will be issued by the Licensing Authority, situated within the Directorate General. The Additional Director General will specifically oversee licensing for minor minerals, such as ‘bajri’, ordinary sand, gravel, shingle, and sandstone.