Lahore: The Punjab government has approved new legislation aimed at overhauling the regulation, monitoring and enforcement of the province’s mining industry. The Mines and Minerals Bill 2025, cleared by the Punjab Assembly’s standing committee on Tuesday, sets the groundwork for the creation of a dedicated Mines and Minerals Force and introduces a wide-ranging framework to curb illegal mining.
According to officials, the bill is designed to establish a transparent, modern and investment-friendly system for the sector. It introduces strict rules for licencing, monitoring and mining operations, while deposits related to nuclear energy, oil and gas remain outside its scope.
Under the proposed law, a new cadastre system will govern the granting of exploration, prospecting and mining titles. Authorities will be empowered to cancel inactive or non-compliant titles. Applicants will also be required to submit Social Impact and Environmental Management Plans before receiving approvals.
The legislation sets out tougher penalties for violations, including fines, suspension and cancellation of licences. Mining companies will need to file environmental impact reports as a mandatory condition for operating.
A restructured directorate within the Mines and Minerals Department will oversee the sector, led by a Director General with expanded authority over licencing, monitoring and revenue recovery. District-level Mining Liaison Committees will also be established to support enforcement efforts.
The bill introduces a Mineral Dispatch Invoice system to streamline royalty collection and mandates the construction of tailings dams for mining involving hazardous chemicals. It further outlines clear distinctions between large-scale and small-scale mining.
The appointment mechanism for the Director General will be revised, with the DG granted powers to hire officers, engineers and geologists. Additional enforcement powers have been delegated to senior officials at the department.
Authorised district officers will be required to inspect licenced areas, assisted by local police and district administrations in actions against illegal mining. A system for registering, renewing and cancelling geologists, engineers and surveyors is also part of the new framework.
The bill will now proceed to the full Punjab Assembly for final approval.
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