The Punjab Assembly approved a new mining legislation aimed at attracting both domestic and international investment.
The Punjab government has enacted the Punjab Mines and Minerals Bill 2025 in the provincial legislature, establishing a complete legislative framework for the mining sector.
The legislation was ratified in the current session and seeks to attract foreign investment while establishing clarity and regulation within the mining sector. A contemporary licensing system will be implemented under the new legislation, and a specialized licensing authority will be created with the jurisdiction to issue, suspend, and revoke mining licenses.
The bill stipulates the establishment of a Mines and Minerals Force to combat illegal mining activities. The force will be led by a Director General, and all personnel, excluding senior officials, would be mandated to don uniforms. The force will possess the authority to execute arrests in instances of illicit mining.
The legislation additionally mandates the creation of specialized police stations for mining and minerals, along with dedicated tribunals to adjudicate mining-related matters. The rulings of the special courts may be contested in the sessions courts.
An Exploration Promotion Division will be established to create a coordinated geological database to encourage exploration. The legislation delineates bidding protocols and penalty provisions, and upon ratification, multiple current draft mining statutes will be annulled.
Officials stated that the primary objective of the new legislation is to provide legal certainty to investors and provide a robust regulatory framework consistent with national and international norms.
The legislation aims to regulate, promote, and oversee Punjab’s mineral resources via a contemporary and complete legislative framework.
The framework emphasizes transparency, scientific methodologies, and ecologically sustainable mining practices, while enhancing regulatory control. Explicit protocols have been established for the granting, renewal, suspension, and cancellation of mining titles.
The legislation seeks to augment the role and jurisdiction of the Mines and Minerals Department while streamlining the licensing procedure for investors and stakeholders.
The law will become effective with the Governor of Punjab’s final approval, after which multiple existing mineral laws would be repealed.
Officials indicated that the mining sector is crucial for economic growth, employment generation, and industrial advancement, and the new legal framework aims to assist the sector in addressing rising issues and realizing its full potential.